Petrofac acquires Caltec, targets marginal oil & gas reserves

London - International oil & gas facilities service provider Petrofac has acquired Caltec Ltd for an initial £15 million and  further consideration of up to £15 million over the next five years, subject to the achievement of certain agreed performance targets. Caltec is a production technology company with products aimed at the enhancement of production from mature fields, and is majority-owned by its management and employees.

Based in Cranfield, UK, Caltec has a longstanding association with Cranfield University and, with another office in Aberdeen, UK, has 18 employees. Its technologies include the Wellcom system, which boosts production flowrates by lowering wellhead pressures, and the I-SEP system, which allows the partial separation of gas, oil, water and solids.

The acquisition, said Petrofac, will enable it to offer new production-boosting and partial separation tools within its production enhancement portfolio. These technologies will allow significant production, reserves and field life improvements to be made and, through the planned extension of the technologies, access to difficult, marginal oil & gas reserves.

Gordon East, managing director of Petrofac Facilities Management said: “Caltec has developed innovative production enhancement technologies, which will further develop Petrofac’s capability in this area. It has an excellent reputation and team and we look forward to jointly developing further capability in this area to continue to add significant value to our customers.”

Dave Turley, managing director of Caltec commented: “We are really pleased to be joining Petrofac at this particular point in our development. As part of a larger organisation with numerous ongoing contracts, we believe we can very quickly demonstrate the benefit of our unique production boosting systems and inline process technology for customers operating within mature basins.”