(EnergyAsia, April 29 2011, Friday) — The Harren & Partner Group and Goldman Sachs Capital Partners said they have agreed to invest a total of US$500 million in Singapore-based OIG Offshore Installation Group to help finance the company’s strategic growth and acquisition of additional vessels.
OIG Offshore Installation Group is an offshore engineering contract procurement installation (EPCI) provider of global subsea installation and logistics services.
Goldman Sachs Capital Partners (GSCP), which operate the funds for Goldman Sachs’ direct private equity investments, will be OIG’s majority shareholder upon expected closing of the transaction in early May.
With the investment injection, OIG will own two modern, high specification giant class offshore installation vessels and build a third vessel due for delivery in 2012. OIG will also acquire Global Mooring Services AS (GMS) to strengthen its position in the offshore installation and mooring space.
Jarle Andersen, GMS’s founder and main shareholder, will be a significant shareholder in OIG and will join the company as chief operating officer. OIG has secured a strategic partnership with Kongsberg Oil & Gas Technologies (KOGT), providing access to certain technologies and KOGT’s leading engineering capabilities.
Geir Aune, OIG’s chairman said: “OIG is an excellent combination of quality offshore services and engineering capabilities, an experienced maritime partner and a new vessel design. The efficiency resulting from the game changing vessel design will allow us to reduce the installation time and thereby add significant value to customers. I see strong growth opportunity from developing OIG into a leading offshore installation & construction group, benefitting from Harren & Partner’s maritime expertise, GMS’ proven track record and GSCP’s financial commitment.”
Captain Heiko Felderhoff, CEO of OIG, said: “In both H&P and GSCP we have found partners whose understanding of this industry, the markets we compete in and what it takes to be successful is a great fit for our business and its strategy. With their support, we plan to grow the company based on an expansion of our fleet and developing new and innovative technical solutions. One example is deepwater flexible pipe laying, where we have developed a new efficiency enhancing system together with KOGT, our strategic partner.”
Captain Peter Harren, founder and managing director of H&P Shipping, said: “Being a founding partner of OIG, we are excited about the opportunities ahead for OIG. With an experienced management team and new and specifically developed assets, we are well positioned to capitalise on the growth opportunities ahead and to provide customers with high quality services. We are convinced that our track record as a successful maritime group with significant experience within the oil and gas industry will benefit OIG.”
Till Hufnagel, GSCP managing director, said: “We believe that OIG is very well positioned to become a leading player in the growing offshore installation and construction space. GSCP is committed to support OIG’s ambitious growth strategy together with our partner Harren & Partner.”
GSCP said its latest VI fund was raised in 2007 and is the sixth global private equity fund of Goldman Sachs with a total value of US$20.3 billion. GSCP has extensive experience investing in the energy sector.
Its portfolio of energy investments include oil field companies such as Expro, Ensco, Sub Sea International, Seacor Smit and Prysmian; exploration and production companies like Bill Barrett Corporation and Cobalt Energy; energy transportation and storage services provider Kinder Morgan, oil refiner Coffeyville Resources, independent power producer Orion Power Holdings, diversified utilities provider TXU and renewable energy firm Horizon Wind Energy.