Norwegian offshore service provider Archer has signed an offer letter with industrial group Moreld laying out principle terms to acquire 100% interest in compatriot well intervention firm Deepwell.
The Avaldsnes headquartered DeepWell had approximately 200 employees and a revenue of NOK355m ($42.6m) in 2020. As a result of the acquisition, Archer will take over Equinor wireline services scope from DeepWell starting May 1, 2021.
Archer’s CEO, Dag Skindlo, said: “An acquisition of DeepWell would secure Archer’s access to a modern fleet of electric wireline units, as well as enable participation in the vessel-based light well intervention market. Strengthening our equipment fleet, broadening our low carbon/low emission solutions and continuing our track record for service quality are all key aspects of our strategy on the NCS.”
The contemplated transaction is subject to due diligence, negotiation of the transaction documentation, closing conditions and regulatory approvals.