RIL targets Scottish energy services co
Reliance Industries is eyeing €2-billion Scottish company Wood group for acquisition.
By Amanpreet Singh & Soma Banerjee, TNN |
NEW DELHI: Reliance Industries is eyeing €2-billion Scottish company Wood group for acquisition. Listed on the London Stock Exchange, the Wood group is an international energy services company engaged in deepwater engineering, offshore pipelines, enhancement of oil and gas production in mature fields et al.
RIL’s talks with the Wood group are in line with the company’s exploration and production plans, which now envisage doubling of production to almost 80 million metric standard cubic metres (mmscd) per day by 2008. This would require, among other things, changes in engineering and design. Put simply, RIL may need to alter its field development plans to include several features within the first phase to take care of the increased production targets.
When contacted, a company official declined to comment.
Sources in the know, however, said RIL was looking for acquisitions of energy services and rig companies in this region and talks are on with at least 2-3 such companies. An email query sent to the official spokesperson of the Wood group failed to elicit a response.
Private equity major 3i has invested e37.2 million in the Wood group and has had a long-standing relationship since 1982. The Wood group provides oil and gas services to more than 30 countries across the world. 3i recently helped the Wood group acquire Mustang, a US-based design engineering business with a market-leading position in the Gulf of Mexico.
With this acquisition, the Wood group has added onshore engineering skills to its profile. The group’s engineering and production facilities division provides services like engineering design and project management for the development of new oil and gas fields, as well as maintenance and operation of existing facilities.
RIL, which has made several successive finds in the KG basin, is now exploring possibilities of pumping up its gas production figures given the immense demand-supply gap in the country. This would require front-loading of some of the engineering features like floating deepwater platform or additional capacity in the pipelines to transport gas.
Although energy services companies like the Wood group lease out services, sustaining such costly expenditure poses a huge financial strain for an exploration and production (E&P) company. The move is being made in the light of the fact that India lacks the expertise and the production base for heavy engineering equipment needed by the oil and gas industry here.
RIL’s talks with the Wood group are in line with the company’s exploration and production plans, which now envisage doubling of production to almost 80 million metric standard cubic metres (mmscd) per day by 2008. This would require, among other things, changes in engineering and design. Put simply, RIL may need to alter its field development plans to include several features within the first phase to take care of the increased production targets.
When contacted, a company official declined to comment.
Sources in the know, however, said RIL was looking for acquisitions of energy services and rig companies in this region and talks are on with at least 2-3 such companies. An email query sent to the official spokesperson of the Wood group failed to elicit a response.
Private equity major 3i has invested e37.2 million in the Wood group and has had a long-standing relationship since 1982. The Wood group provides oil and gas services to more than 30 countries across the world. 3i recently helped the Wood group acquire Mustang, a US-based design engineering business with a market-leading position in the Gulf of Mexico.
With this acquisition, the Wood group has added onshore engineering skills to its profile. The group’s engineering and production facilities division provides services like engineering design and project management for the development of new oil and gas fields, as well as maintenance and operation of existing facilities.
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RIL, which has made several successive finds in the KG basin, is now exploring possibilities of pumping up its gas production figures given the immense demand-supply gap in the country. This would require front-loading of some of the engineering features like floating deepwater platform or additional capacity in the pipelines to transport gas.
Although energy services companies like the Wood group lease out services, sustaining such costly expenditure poses a huge financial strain for an exploration and production (E&P) company. The move is being made in the light of the fact that India lacks the expertise and the production base for heavy engineering equipment needed by the oil and gas industry here.
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