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§ Equity acquisition consistent with APICORP's strategy of rebalancing portfolio through value adding equity investments
§ Offers the Arab region exposure to global offshore oil services market
Dammam - The Arab Petroleum Investments Corporation (APICORP), a multilateral development bank established in 1975 by the 10 member states of the Organization of Arab Petroleum Exporting Countries (OAPEC), is pleased to announce the acquisition, in partnership with UK private equity firm Buckthorn Partners, of a controlling interest in Ashtead. Ashtead Technology provides global reach, having its headquarter in Aberdeen, UK.
Ashtead is a leading independent provider of subsea equipment and services to the offshore oil and gas industry, with operations in the UK, Houston and Singapore.
The equity acquisition is in line with APICORP's strategy of rebalancing its portfolio through geographical diversification of its equity investments, in addition to knowledge and skills transfer to the region, being part of APICORP's mandate to develop the Arab energy industry
In the current environment of low oil prices, producers around the world are under increasing pressure to reduce their offshore recovery costs. Ashtead's innovative subsea equipment helps them to achieve this, which also forms part of APICORP's development strategy to help transform the Arab energy industry through innovation.
The market opportunity for Ashtead is therefore significant, and the investment by APICORP will allow the company to expand its service offering in the subsea IRM (inspection, repair and maintenance) sector of the oil and gas industry. The investment will also enable Ashtead to expand its geographical reach, with the Middle East being a particular area of interest and focus.
Dr Raed Al Rayes, Deputy CEO and General Manager of APICORP, commented: "We are pleased to have completed the acquisition of a stake in Ashtead. It perfectly matches our stringent acquisition criteria, and is in line with our strategy of rebalancing our portfolio by making value adding equity investments in the energy sector. Investing in a global services firm such as Ashstead also diversifies our exposure further across the broader energy sector. This investment is also aligned with our aspiration to bring cutting edge technologies to the Arab region, in support of the industry's future development."
Dr Al Rayes added: "Ashtead's market position, advanced technology, experienced management team, and track record of achieving cost savings for their clients in the oil industry, leave it well placed to take advantage of the prevailing economic conditions. We are looking forward to working with Ashtead's executive team and applying our own industry knowledge to achieving further growth."
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About APICORP
The Arab Petroleum Investments Corporation (APICORP) is a multilateral development bank established to foster the development of the Arab world's oil and gas industries. The organization was created under the terms of an agreement signed by the 10 Member States of the Organization of Arab Petroleum Exporting Countries (OAPEC) in September 1974. APICORP's vision is to transform the Arab energy industry into a powerful force for the region's economic progress. Driven by this vision, APICORP seeks to make equity investments and provide project loans, trade finance, advisory and research to the energy industry.
APICORP is one of the five organizations established by OAPEC to promote cooperation and economic integration in the Arab hydrocarbon and petrochemical industry. Since its founding, APICORP has made significant contributions to the evolution of the region's energy industry. It has made equity investments in 22 oil and gas joint venture projects worth over $13 billion and participated in direct and syndicated energy finance transactions worth over US$126 billion. APICORP's aggregate commitments in these transactions, including both in equity and debt, are valued in excess of US$11 billion. Apart from this, it has provided advisory and treasury services related to financing and project development; and published highly regarded macro-economic research. These areas continue to define APICORP in today's marketplace.
APICORP is independent in its functioning and carries out its operations on a commercial basis. The Corporation's headquarters are located in Dammam, in the Eastern Province of Saudi Arabia. APICORP also operates a Banking Branch in Manama, Bahrain.
For more information about APICORP visit www.apicorp-arabia.com
For further information:
Archie Berens, Bell Pottinger
Mobile: +971 555597407
Email: aberens@bellpottinger.com
© Press Release 2016
