ABERDEEN-based oil services business OEG Offshore has ramped up its presence in the key Gulf of Mexico market following a multi-million dollar deal with a US firm.
The cargo unit supplier said its subsidiary in the USA has merged with Louisiana-based oilfield equipment provider Cameron Rental and Tank Inc.
“This merger provides an ideal platform for the OEG Offshore group to significantly expand its presence across the Gulf of Mexico region,” said OEG Offshore’s chief executive John Heiton.
The deal signals confidence in the long term prospects for the US oil and gas market on the part of financiers in spite of the plunge in the crude price.
OEG Offshore said it benefited from the backing of US private equity giant Kohlberg Kravis Roberts last year.
Some Aberdeen-based oil and gas services businesses had been trying to reduce their dependence on the mature North Sea market well before the downturn in the global oil and gas industry that started in the second half of last year.
This is expected to trigger a wave of consolidation in the oil services market.
Firms may hope to use acquisitions to give them increased clout with customers in the face of cuts in spending by firms that operate oil and gas fields and to achieve economies of scale.
On Wednesday US giant Schlumberger announced it was buying equipment maker Cameron International (no relation) for $14.3bn.
OEG said further expansion and investment in its fleets of containers and cabins will continue through 2015 and into 2016.
The merger with Cameron Rental and Tank will allow the enlarged OEG business to expand its customer base and to offer a wider range of services
Cameron Rental and Tank provides equipment such as cargo carrying baskets and containers and portable chemical tanks.
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