Seascape Energy Regulatory News (SEA)

20 Dec 2005 07:00

Ramco Energy PLC20 December 2005 Press Information 20th December 2005 RAMCO SELLS ITS OIL SERVICES DIVISION Ramco Energy plc (Ramco), the Aberdeen based independent exploration andproduction company, announces that it has concluded the sale of its Oil Servicesdivision for £14.1 million to a management buy-out team led by the ManagingDirector of that business, Stewart Cumming. The sale process for the division commenced earlier in the year and wasled by Ernst & Young as part of a waiver agreement with Ramco'slenders. The management buy-out team supported by Edinburgh based TeassesCapital Limited, was the successful bidder in a competitive tender process. Theproceeds of the sale after costs has enabled Ramco to repay the entire £12million recourse loan it had secured against this business as a part of thefinance package for the development of the Seven Heads Gas Field. A similar sales process for the disposal of Ramco's interest in the Seven HeadsGas Field continues and it is now expected that this transaction will not closeuntil next year. Stephen Remp, Ramco's Executive Chairman said "We wish Stewart and his teamevery success in the future and thank all of the employees at Oil Services fortheir loyalty and hard work over the 28 years they have been a part of theGroup. I am pleased that Stewart has agreed to remain on the Ramco board as aNon-Executive Director" Ramco Energy plc - AberdeenSteven Bertram - Managing Director 01224 352200 College Hill - LondonNick Elwes 020 7457 2020 Notes Ramco Oil Services which is headquartered at Badentoy Park in Aberdeen wasfounded in 1977. The company, has an annual turnover of £14 million, also hasoperations in Norway and Japan and a joint venture with Corus (BSR) inHartlepool. Its customer base includes Shell Expro, BP, Chevron Texaco, ExxonMobil, Tenaris, Itochu, Conoco Phillips and Statoil. Employing around 180 staff worldwide, the company operates in two business. Tubular ServicesThis highly successful division of the business retains 80% of the North Seamarket share for corrosion engineering and tubular maintenance. Its patentedmobile pipe care units are located in Stavanger and Floro in Norway and HandaCity, Japan. Ramco Oil Services is a partner in the world class "One Stop Shop" facility atBadentoy in alliance with Tuboscope Vetco and Hunting Oilfield Services. Thiscomprises adjacent cleaning, coating, inspection, threading and storagefacilities, which are unique to the North Sea. Ramco Oil Services manages Shell Expro's Offshore Tubular Services activitiesand, as lead contractor, is responsible for the handling, storage, cleaning,coating, inspection, repair and maintenance of all Shell's new and refurbishedtubulars. Ramco Oil Services is also a partner in the joint venture company BadentoyTubular Services in association with Hunting Oilfield Services (UK) and SumitomoCorporation Europe plc. This company was created following the award of a fiveyear, multi-million pound tubular management service deal by BP in 1999, whichwas recently extended until 2007. Pipeline ServicesBSR (British Steel Ramco) Pipeline Services (in which Ramco holds a 50%interest) has been operating from within Corus's pipe manufacturing mill inHartlepool since 1988. BSR specialises in providing multi-layer pipe coatings,including polyethylene and polypropylene, as well as FBE (Fusion Bonded EpoxyCoatings), internal coatings and other pipeline services. This information is provided by RNS The company news service from the London Stock Exchange