Interwell AS Announces Agreement to Acquire Petroleum Technology Company AS
Interwell is expanding its product portfolio and strengthening its position as a leading well-technology solutions provider with the acquisition of Petroleum Technology Company AS ("PTC").
Interwell has entered into an agreement to acquire 100 % of the shares in PTC, where the deal is conditional upon necessary regulatory approvals with expected closing towards the end of Q2-2022.
The transaction brings together two successful engineering-focused service companies with market-leading technology provided to the global energy industry. Both companies provide products and applications with a particular focus on well integrity solutions from the wellhead to the toe, green and brownfield catering technical solutions for Completion, Well Intervention, and Plug & Abandonment.
Complementary businesses
Both companies are leading providers of well-technologies in separate parts of the E&P value chain. They have built a solid market position on the Norwegian Continental Shelf and succeeded in commercializing their product offerings internationally. The combined entity will have a revenue base where 70 % of the income is derived outside Norway. Both companies are headquartered in Stavanger where they will now join forces to continue and strengthen the international expansion.
Interwell develops and offers sealing technology and well integrity solutions. Our products help oil and gas operators to achieve the highest possible rate of recovery of hydrocarbons while reducing operational complexity, risk and environmental footprint. Existing wells make up the bulk of the activity, where the products are used throughout the well's life cycle up to and including final closure. Interwell's products also have applications within energy transition markets related to gas storage, carbon capture and geothermal wells.
PTC is a leading provider of dual barrier solutions designed to improve well integrity while reducing costs. Over the last 20 years PTC has innovated and patented technologies that have had a major impact on gas lift solutions, chemical injection & dry wellhead pressure monitoring & control installations globally. PTC's client base includes most of the major IOC and NOC companies across the globe.
We are excited to combine two technology driven Norwegian companies with track records of successfully expanding abroad. We strongly believe that this will increase the value proposition to our customers. Our combined technology portfolio will support customers in optimizing production from existing wells, increase safety and enable efficient plugging and abandonment of old wells, while reducing emissions from operations. Interwell and PTC have a history of successful collaboration, which makes me optimistic about a successful integration. In the years to come, the industries in which we operate face significant changes; the acquisition of PTC strengthens our position in this environment. By consolidating the market, we are better rigged to continue to deliver innovative and market-leading solutions for our customers, says Thormod Langballe, CEO of Interwell.
We are looking forward to continuing our growth journey with a successful market leader. Interwell and PTC are a perfect match with complementary, but not overlapping product portfolios. By combining our efforts, we will secure a joint future with a broad product portfolio where excellent talent and knowledge sharing will give a solid foundation also for future product developments. Both companies are headquartered in Stavanger and share the
same values and business culture. We are excited about the opportunities that this acquisition opens and convinced that it is a great strategic match, says Rolf Haaland, CEO of PTC.
More, improved and efficient technology solutions are fundamental for further growth
The transaction creates a company with approximately 700 employees, and headquarters will remain in Stavanger. Thormod Langballe will continue as Group CEO and establish an Executive Management Team with representation from both companies. The organization is built on a solid financial foundation with a combined 2021 turnover of approximately NOK 2 billion. Historically, the companies have delivered an annual organic top-line growth of 15 % and are optimistic about future growth prospects.