Kotug consolidates the offshore sector by acquiring Seaways International
In the latest wave of consolidation in the offshore sector, Dutch offshore operator Kotug International has reached an agreement to acquire Seaways International. The more than 100-year-old Dutch company said the decision to acquire the Dubai-based company was designed to accelerate its growth in global offshore floating energy installations and respond to opportunities in emerging markets. After a prolonged downturn in the oil and gas sector, Kotug said it expects growth as new offshore floating projects emerge in response to growing energy demand.
Seaways owns and operates a fleet that includes DPS-2 capacity AHTs, fast crew providers and cargo barges, and also provides terminal management services. Founded in 1995, the Dubai-based company primarily focuses on the Middle East, West Africa, India and Singapore. The company’s business focuses on the field of FPSO/ FSO/ SBM/ Drill Rig Support, Underwater Construction Support, Anchor Handling, Static/Ocean Towing, Port Handling /terminal and tug/barge combinations. The addition of Seaways operations will particularly strengthen Kotug’s presence in West Africa.
“The acquisition of Seaways will mark an important milestone for Kotug. This fits with our strategy to expand our (offshore) operations worldwide to meet the growing demand for offshore support vessels,” said Ard-Jan Kooren, President and CEO of KOTUG. “The integration of the services and assets of the two leading companies will bring exciting synergy opportunities, leading to more efficient operations and enhancing the creation of significant value for our global customers.”
The planned acquisition of Seaways would be the largest in Kotug’s history, the company noted, and follows recent years in which Kotug has invested heavily in offshore support vessels and people. Kotug’s strategy is to expand its business by supporting global floating facilities such as FSO, FPSO, FLNG, FSRU and SPM terminals.
“Since its incorporation 27 years ago, Seaways has established itself as a reputable offshore shipping company with a proven track record and a capable and experienced team,” said Captain Ashish Nijhawan, Managing Director of Seaways International. “KOTUG is the ideal solution for our employees and customers.”
The acquisition is expected to close in the second half of 2022. The two companies will now work through customary government and other approvals, with the aim of closing the transaction in July 2022.