Green light for Archer to close DeepWell takeover

Oilfield services provider Archer has received approval from a competition regulator in Norway for the acquisition of DeepWell.

Following an offer letter from April 2021 to purchase 100 per cent of shares in DeepWell, Archer in early May signed a sale and purchase agreement to acquire DeepWell based on an enterprise value of NOK 177 million on a debt and cash-free basis.

The completion of the acquisition was conditional on obtaining the necessary regulatory approval. Such approval was granted on Monday by the Norwegian Competition Authority.

Based in Norway, DeepWell is a Norwegian well intervention company focused on mechanical wireline and cased hole logging services.

DeepWell employed approximately 200 people and had a revenue of NOK 360 million in 2020. The company commands a wireline unit fleet on the NCS and holds a strategic long-term contract in the light well intervention market.

Following the approval, the transaction is expected to close over the next few days, Archer said.

In related news, Archer has recently been awarded a plug and abandonment campaign in 2021 and 2022 by Wintershall Dea.

The work scope will see the company provide perforate, wash, and cement and formation integrity testing tools and services, as well as downhole tools on tubing, conveyed and plugs-cutters for 22 wells with an option of another 20 wells.