6th May 2008 07:03
AMEC PLC06 May 2008 6 May 2008 AMEC acquires specialist in-situ oil sands business AMEC plc, the international engineering and project management company,announces today that it is to acquire Bower Damberger Rolseth EngineeringLimited (BDR), a specialist in-situ oil sands business, from its owner-managersfor Cdn$45 million (£22 million) in cash. Based in Calgary, Canada, BDR provides specialist technical engineering servicesto the fast growing 'in-situ' heavy oil, gas and oil production industries. With85 employees, it has a particular expertise in thermal recovery of in-situ oilthrough its Steam Assisted Gravity-Drainage (SAG-D) methods. In-situ depositsare those which lie too far below the surface to be recovered by open-castmining. BDR's reputation and capability in the in-situ segment of the market iscomplementary to AMEC's existing position and expertise in oil sands, where itis the market leader in the provision of upstream engineering services andproject management to the surface mining sector. Samir Brikho, Chief Executive stated: "This is an important acquisition for AMECand one which enhances our position in the fast growing Canadian oil sandsmarket. It also demonstrates further progress with our strategy of geographicand capacity expansion in the energy industries, which was first communicated inDecember 2006." Neil Bruce, Chief Operating Officer for AMEC's Natural Resources division,added: "By combining AMEC's leading position in the mineable segment and BDR'sstrong reputation in in-situ extraction, we are creating a capability that iswell positioned in a market with good growth prospects." Stuart Albion, President of BDR stated: "We are delighted to join AMEC andcombine our specialist engineering capability with the total EPCM* projectdelivery capability of AMEC and we are looking forward to contributing to thefuture growth in the oil sands." Of the initial payment, Cdn$10 million (£5 million) is deferred over threeyears. 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 thresholdover that period. Completion of the transaction is expected later in May. *Engineering, Procurement, Construction Management Enquiries to:AMEC plc: +44 (0)20 7539 5800Sue Scholes, Director of CommunicationsNeil Jamieson, Director of Investor Relations Media:Frank Stokes, Media Relations Manager; +44 (0)1452 872121John 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 20,000 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. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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