Kevin Scott
FRONTROW Energy Technology Group has acquired a 50 per cent stake in ClearWELL Oilfield Solutions, its first deal since receiving £10m backing from the Business Growth Fund.
It has acquired the stake for an undisclosed sum from Dorset-based MSL Oilfield Services, which retains the remaining 50 per cent.
Chaired by former Expro Group chief executive Graeme Coutts, Frontrow was established in its current form last year with a strategy of creating a portfolio of small and medium sized enterprises in the energy services sector to develop technology that can improve efficiency and lower costs in the post-downturn oil and gas industry.
“FrontRow is focused on dramatically reducing costs in the oil and gas industry,” said chief executive, Stuart Ferguson, who was previously chief technology officer at the Weatherford.
He added: “ClearWELL is very much aligned with this ethos and will significantly add to our existing group of companies, which have technology and innovation at the heart of all they do.”
The company joins a portfolio that includes downhole technology firm Well-Sense, offshore servicing company Well-Centric, and Interventek, a subsea technology business.
ClearWELL provides a system that prevents the build-up of scale in pipework, which is estimated to cost the industry billions of dollars each year through scale prevention, scale remediation and deferred production.
“The installation of ClearWELL’s units can reduce or, in many cases, remove the need for alternative treatment methods, which results in major cost and time savings for operators,” said Mr Ferguson.
“With the global market for oilfield scale inhibitor set to reach $700 million by 2020, we see tremendous potential for ClearWELL and are excited to support its ambitious growth plans.”
ClearWELL, which will relocate its head office in Southampton to FrontRow’s office in Aberdeen, plans to grow its existing number of units in the field by 400 per cent over the next five years.
MSL designs and manufactures the ClearWELL technology for a number of different markets including oil and gas.
Martin Clark, chief executive at MSL Oilfield Services, said the acquisition marked a “very positive step forward” for ClearWELL.
“We currently have units in operation across the world, many in the USA and Canada, and have been delivering solutions to a string of major oil and gas players for some time,” he said. “With the support of FrontRow, we plan to maximise ClearWELL’s full international potential.”
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