WorleyParsons to acquire INTEC Engineering from Heerema Group
  by: OilOnline
  Tuesday, April 01, 2008

The Heerema Group and WorleyParsons have announced an agreement for WorleyParsons to acquire Heerema's INTEC Engineering B.V. division.  The agreement also provides for an ongoing business relationship whereby WorleyParsons and INTEC can provide engineering services to the Heerema Group.

The acquisition will enable WorleyParsons to accelerate INTEC's growth strategy and at the same time secure for the Heerema Group companies continuing access to leading engineering and project management capabilities. The acquisition enhances WorleyParsons position in the deepwater hydrocarbons market and complements the company's existing capabilities to now provide services across the entire spectrum from subsea to export facilities.

The transaction will not affect projects under existing or pending contracts between INTEC and Heerema Group or third parties. Heerema and WorleyParsons are committed to a continued business relationship which is expected to be beneficial to clients.

The CFO of Heerema group, Nico Pronk, said: "This is a good outcome for both companies. In the past years, INTEC has made a significant contribution to Heerema's services in the market for EPC (engineering, procurement and construction), particularly in the deepwater segment. WorleyParsons is the best fit for offering further growth and development of INTEC's capability, combined with the global capability of the WorleyParsons organization".

"Equally important is the continued access that WorleyParsons is offering Heerema to its resources, providing Heerema a competitive advantage in the current tight labor market. With access to this broader range of engineering and project management capacity, our Heerema Marine Contractors and Heerema Fabrication Group divisions will now be better positioned to capitalize on the opportunities in our industry", he said.

WorleyParsons Chief Executive Officer, Mr John Grill said: "The world's remaining oil reserves are increasingly being found in difficult to access areas, forcing our clients to look further afield in their search for new reserves.  The acquisition of INTEC completes the missing link in our hydrocarbons business which we have been seeking to fill for several years and strategically positions WorleyParsons to service our clients operating in deepwater locations.

"INTEC's capabilities uniquely complement the existing capabilities of the Sea Engineering business, a specialist in deepwater hull, moorings and risers, acquired in January 2007.  WorleyParsons now has the capability to provide services across the entire spectrum from subsea to transmission line.  We were attracted by INTEC's experienced management team as well as its track record of profitable growth.," he said.

WorleyParsons and INTEC have a long track record in working on projects jointly around the world. Also commenting on the announcement, the Chief Executive Officer of INTEC, Mr Edward Smith, said: "Joining WorleyParsons will benefit our staff through exciting new growth opportunities and benefit our clients through significantly enhanced and complementary technical and project management skills and geographic presence.  The additional resources our business will gain from being part of the WorleyParsons group will provide a platform for a truly diversified and comprehensive engineering and project services offering to the offshore industry".

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