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WorleyParsons to buy Amec’s former UK oil and gas assets

EBR Staff Writer Published 09 October 2017

Australian engineering group WorleyParsons has agreed to acquire former upstream oil and gas division of Amec Foster Wheeler for £228m, making an entry into the UK North Sea market.

The unit, AFW UK Oil & Gas represents a majority of the UK upstream oil and gas operations of Amec Foster Wheeler, which has been acquired by John Wood Group for £2.2bn.

The company is selling AFW UK to address competition concerns raised in connection with the transaction between AFW and John Wood Group.

Earlier in August, Competition and Markets Authority (CMA) of the UK had said that the merger would raise competition concerns in engineering and construction services and operation and maintenance services.

AFW UK Oil & Gas is a Maintenance, Modifications and Operations (MMO) service provider. It is considered to be a leading player in the engineering & construction, operations and maintenance and hook-up services markets on the UK Continental Shelf.

For WorleyParsons, the acquisition will help the company in strengthening its MMO business.

WorleyParsons CEO Andrew Wood said: “AFW UK is a world class integrated solutions business with best in class MMO capabilities and an excellent track record of international expansion.

“We look forward to combining AFW UK’s capabilities with our international platform to create a global MMO business capable of driving medium term growth.”

According to Amec Foster Wheeler, AFW UK earned revenues of £740m and trading profit of £43m in 2016. The company had registered revenues of £323m and trading profit of £34m during the first half of 2017.

WorleyParsons plans to use the sale proceeds to cut down on its debt. The transaction is expected to be completed by the month end.