ABL Group to acquire Add Energy
11 Jul 2022
ABL Group ASA has entered into an agreement to acquire 100 percent of the shares in energy and engineering consultancy Add Energy. The acquisition broadens ABL Group’s service offering, enhances services in the opex phase and gains entry into digital optimisation, carbon storage and energy efficiency services that are crucial to the energy transition.
“ABL Group has traditionally been more exposed to the capex-driven field development part of offshore energy industries. We are through this acquisition gaining additional exposure to the opex-driven side of offshore energy industries, including decarbonisation and life extension work. This reflects our commitment to transitioning all areas of energy and oceans to net-zero, including oil and gas,” says Reuben Segal, CEO of ABL Group.
The acquisition also reinforces ABL Group’s value commitment to technical and service excellence, by adding 140 skilled consultants to the group’s global team. It will allow ABL Group to expand its service offering in asset integrity management and opex services within both offshore renewables and oil and gas. Add Energy also brings numerous fully developed software solutions that can be applied to several parts of ABL Group, including its businesses working in the oil and gas industry: ABL, Longitude and East Point Geo.
ABOUT ADD ENERGY
Add Energy offers solutions and specialized consultancy services to the energy industry. The company’s solutions are supported by a unique toolbox of proprietary software and analytical tools, developed in partnership with industry and academia.
The company’s two major business lines are asset integrity management, which is provided across a wide range of industries including oil and gas, and well engineering, management, control and servicing to assure safety, regulatory compliance and efficiency in operators’ drilling, production and decommissioning projects in the oil and gas industry. The company also offers safety and risk management consulting.
“Our objective is to capitalise on Add Energy’s world leading subsurface competence and apply it to new segments such as CO2 storage, while building on its impressive position on how to make well operations safer and with reduced environmental footprint. Further, ABL Group’s extensive footprint in renewable energy technologies brings huge potential for Add Energy to accelerate its growing energy transition offering. We also want to employ their specialist asset integrity management competence across numerous sectors with a view to increasing ABL Group’s footprint within the opex-driven operations and maintenance part of asset management,” says Dr. R. V. Ahilan, chief energy transition officer at ABL Group.
Add Energy is headquartered in Stavanger, Norway, but its main operating hubs are in Perth, Western Australia; Aberdeen, UK; Houston, USA; and Calgary, Canada.
In 2021, Add Energy delivered revenues of NOK 209 million. The company has a healthy order backlog of approximately NOK 190 million.
“ABL Group and Add Energy share a large amount of common clients, and we know that there are great value creation opportunities in translating their regional based business to our extensive global office network. ABL Group has a proven track record of scaling up consultancy businesses, to the benefit of clients, and we will apply this successful blueprint to Add Energy too,” adds Dr. R. V. Ahilan.
Add Energy’s management team will report to Dr. Ahilan, ABL Group’s chief energy transition officer and member of ABL Group’s executive management team.
“Bringing Add Energy’s competence into ABL Group will enable us to further improve Add Energy’s operational performance. It will enable Add Energy’s team to capitalise on ABL Group’s systems, competence and client relationships, while we add a couple of strings to ABL Group’s bow. Together, we aim to provide a highly differentiated offering to our clients,” says Dr. Ole Rygg, CEO of Add Energy.