ABL acquires compatriot energy player in bid to strengthen position in oil & gas markets

Home Fossil Energy ABL acquires compatriot energy player in bid to strengthen position in oil & gas markets

Oslo-listed global energy, marine, and engineering consultancy ABL Group has inked a deal to buy Norwegian-based energy consultancy Ross Offshore from Moreld Group to expand its oil, gas, and renewables portfolios.

Ross Offshore CEO Jørgen Jørgensen; Source: Ross Offshore

Subject to approval by the Norwegian competition authority, the transaction and acquisition of 100% interest in Ross Offshore is expected to be completed in late 2Q or early 3Q 2024. The two firms believe that consolidating their resources will provide a more robust platform to expand their offering in the renewable energy arena.

Furthermore, they expect the partnership to bring value to the oil and gas industry, with Norway recording a slight rise in oil and gas production earlier this month. Following the completion of the transaction, Ross Offshore will merge with AGR, an ABL Group company, further strengthening the group’s center of technical excellence in wells, reservoir operations, and other consultancy services.

Jørgen Jørgensen, CEO of Ross Offshore, welcomed the merger, stating that being part of the ABL Group will not only enable his company to expand its operations beyond Norway and into new industry sectors but also allow both players to step up their energy transition game.

He noted: “This partnership is a strategic synergy of two completely complementary companies, unlocking the opportunity to further strengthen our mutual position in oil and gas markets, so we can help bring best practice to more clients in more countries globally.”

In a similar fashion, ABL Group CEO Reuben Segal said that his firm would benefit from the new partner’s expertise in marine operations consulting while helping support Ross Offshore’s ambitions related to geothermal technologies and carbon capture and storage (CCS), thought to play an important part in decarbonization.

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“We welcome the Ross Offshore team to ABL Group and look forward to the amalgamation of the business within our AGR brand. This is the latest expansion of our technical offering in wells and reservoir operations, bringing together an even deeper pool of expertise, that enables us to support more clients worldwide across their oil operations,” stated Segal.

Currently headquartered in Stavanger, Norway, Ross Offshore employs 152 people. With a profit of NOK 848 million (around $78.83 million) in 2023, the firm holds several frame agreements with clients on the Norwegian Continental Shelf (NCS), including those for well management, specialized services, and consultancy.

AGR CEO Svein Sollund commented: “As oil and gas companies have continued to grow over the years, we too need to expand our capacity and competence to ensure that we can provide the best possible support to our clients through the challenges they face. AGR first joined forces with First Geo, then Add Energy, and now Ross Offshore, showing our commitment to growing with our customers to drive safety and efficiency in their oil operations in both current and new markets worldwide.”

The merger with AGR is expected to allow Ross Offshore to pursue emission reduction targets as part of its ‘Ross Green Steps’ initiative, which entails expanding support services for offshore wind operations. It also encompasses improving CCS capabilities, relevant in the context of Norway being one of the five European countries that have concluded arrangements on cross-border transport and storage of carbon.

“Ross Offshore has demonstrated strong growth under the ownership of the Moreld Group, and we are confident the transition to the ABL Group will continue this successful journey. The strategic decision of this agreement reflects our commitment to optimizing the portfolio and focusing our resources where they can have the greatest impact, enabling Moreld to pursue opportunities aligned with our long-term strategy,” shared Geir Austigard, CEO of Moreld Group.

AGR recently secured several gigs on the NCS, including a frame agreement with Petoro for multiple petroleum-asset-related services, a long-term contract to support Vår Energi’s seven-well drilling campaign, and a contract extension with Equinor for providing blowout and well control studies.