16th May 2008 13:33
RNS
AMEC plc - Acquisition
For immediate release
16 May 2008
AMEC completes acquisition of specialist in-situ oil sands business
AMEC plc, the international engineering and project management company, announces today that it has completed the acquisition of Bower Damberger Rolseth Engineering Limited (BDR), a specialist in-situ oil sands business, from its owner-managers for Cdn$45 million (£22 million) in cash.
BDR's reputation and capability in the in-situ segment of the market is complementary to AMEC's existing position and expertise in oil sands, where it is the market leader in the provision of upstream engineering services and project management to the surface mining sector.
Up to a further Cdn$35 million (£17 million) is payable in five years' time, subject to the achievement of certain profit targets beyond a threshold over that period.
Enquiries to:
AMEC plc: +44 (0)20 7539 5800
Sue Scholes, Director of Communications
Neil Jamieson, Director of Investor Relations
Media:
Frank Stokes, Media Relations Manager; +44 (0)1452 872121
John Kageorge, Media Relations Manager; +1 602 757 3211
Notes to Editors:
The Canadian oil sands represent the world's second largest reserves of oil after Saudi Arabia. The oil sands deposits contain approximately 1.7 trillion barrels of bitumen, of which 173 billion barrels are proven reserves that can be removed using current technologies. Two main extraction techniques are used in the oil sands: surface mining, which currently accounts for some 65 per cent of production and in-situ, which is expected to increase its share of the market over the next 10 years. The majority of Alberta's vast oil sands deposits are located deep below the surface, too deep for open pit mining. 'In situ' extraction techniques are required to extract the oil-containing bitumen. Steam is injected into the deposit to heat the oil sand lowering the viscosity of the bitumen to facilitate recovery. SAG-D thermal recovery is an in-situ technology which combines horizontal drilling with thermal steam injection. A pair of wells are drilled into the ground about five metres apart and steam is injected into the reservoir through the top well. The steam softens the tar-like bitumen and enables it to flow out of the reservoir and into the lower well.
AMEC plc is a focused supplier of high-value consultancy, engineering and project management services to the world's energy, power and process industries. With annual revenues of over £2.3 billion, AMEC designs, delivers and maintains strategic and complex assets for its customers. AMEC's Natural Resources, Power and Process and Earth and Environmental businesses employ approximately 22,000 people in more than 30 countries globally. AMEC shares are traded on the London Stock Exchange where the company is listed in the Oil Equipment and Services sector (LSE: AMEC.L). www.amec.com
AMEC's Natural Resources business is a leading provider of total life-of-asset services to customers in the upstream and downstream oil and gas sectors, petrochemicals, pipelines and mining industries, with a strong reputation for balancing global excellence with local delivery. The company has been active in the oil sands since 1967 and plays a significant role in most of the major mineable oil sands projects in Canada.
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