ABL Group acquires AGR to enhance digitalization, decarbonization plans, expand offshore energy exposure
(WO) – Energy and marine consultancy group ABL Group ASA has entered into an agreement with a subsidiary of Akastor ASA to acquire 100% of the shares in multi-disciplinary engineering, consultancy and software company AGR. The transaction is valued at $24.58 million.
The purpose is to bolster ABL Group’s offering within well and reservoir consultancy, enhance the group’s position supporting operators’ digitalization and decarbonization plans, and expand its opex-driven offshore energy exposure.
In addition to its oil and gas industry legacy, AGR’s specialist competence and software are also applied to decommissioning of offshore assets, carbon capture use and storage (CCUS), blue hydrogen, geothermal energy and seabed minerals.
“This consolidation gives ABL Group a strong position in well and reservoir consultancy, further enhances our position within digitalization and energy transition solutions, and expands our services with a resourcing offering that is already well established in the oil and gas sector and positioned for growth within offshore wind,” says Reuben Segal, CEO of ABL Group.
CONSOLIDATING WELL AND RESERVOIR CONSULTANCY
Part of ABL Group’s business strategy is to consolidate key services and leverage its global network of offices to drive growth.
Last year, ABL Group acquired Add Energy to enhance the group’s services in the opex phase of offshore energy, including asset integrity management, well and reservoir management, and associated software products.
The acquisition of AGR, which has high brownfield exposure, builds therefore on the previous purchase of Add Energy.
AGR will bring scale to ABL Group’s well and reservoir consultancy and increases the group’s exposure to the opex-driven phases of offshore energy. AGR’s fully commercialized software division strengthens the group’s suite of software products and digitalization capabilities, and adds competence and scale to support energy transition technologies and projects.
This transaction also significantly strengthens ABL’s offerings for CCUS projects at a time when investment in decarbonizing the hydrocarbon sector is increasing rapidly.
In addition, it enables ABL Group to offer resourcing solutions across oil and gas and renewables at a time when talent scarcity is putting projects and deployments at risk.
“Although Add Energy and AGR operate in the same industry space, there is currently limited overlap between the two companies. Our objective is to utilize our global office and client network to bridge the two businesses. By combining their competence and products, we will be able to offer offshore energy clients an even more comprehensive, integrated service offering. This should create value for both operators and ABL Group,” adds Reuben Segal.
Following completion of the transaction, Add Energy will become part of AGR, which will continue as a stand-alone business within ABL Group.