Oilfield service company Expro is understood to have invested tens of millions of pounds in its latest acquisition.
The group, which employs more than 600 people in Aberdeen, snapped up 100% of the equity of Norwegian technology company Quality Intervention (QI).
Based in the Stavanger area, QI supplies products and services for well intervention, production optimisation and decommissioning projects. The firm employs 19 people.
Expro did not reveal the exact value of the deal signed off by executive vice-president Keith Palmer, saying only that it was an “eight figure sum”.
But reports on the other side of the North Sea suggest the figure agreed was nearly £40 million.
Expro said its new Norwegian business allowed it to extend its well intervention capability with proprietary technologies and expand into a £5 billion-plus coiled tubing and pumping service market.
Chief executive Mike Jardon said: “As part of our strategy, we are committed to investing in innovation and developing new technologies to differentiate our offering.This acquisition allows us to enter the coiled tubing market and build on our existing well intervention portfolio, leveraging the expertise from both companies.
“Our customers across the world will see added value, with improved work practices, significant increases in operational efficiency and cost savings.”
Mr Jardon added: “Well intervention is a key part of Expro’s heritage and through the technologies and expertise QI brings to Expro, it will improve and enhance our business.”
QI founder and chief executive Bjarne Langeteig said: “We have been partnering with Expro for a year and are delighted to be entering into this agreement.
“Since starting the business in 2008, we have been focused on being technology disrupters and challenging conventional practices in the well intervention market.
“We believe that our technology is value-enhancing for the coiled tubing market and through our partnership we have seen how well our technology complements Expro’s. We look forward to working together as one team.”
Expro specialises in services and products that measure, improve, control and process flow from high-value oil and gas wells, from exploration and appraisal through to mature field production optimisation and enhancement.
Its head office is in Reading, Berkshire, but the regional Europe-Commonwealth of Independent States headquarters are in Aberdeen.