The Arab Petroleum Investments Corporation (APICORP), a multilateral development bank established in 1975 by the 10 member states of the Organization of Arab Petroleum Exporting Countries (OAPEC), has announced the acquisition, in partnership with UK private equity firm Buckthorn Partners, of a controlling interest in Ashtead. Ashtead Technology provides global reach, having its headquarter in Aberdeen, UK.

Ashtead is a leading independent provider of subsea equipment and services to the offshore oil and gas industry, with operations in the UK, Houston and Singapore.

The equity acquisition is in line with APICORP’s strategy of rebalancing its portfolio through geographical diversification of its equity investments, in addition to knowledge and skills transfer to the region, being part of APICORP’s mandate to develop the Arab energy industry

In the current environment of low oil prices, producers around the world are under increasing pressure to reduce their offshore recovery costs. Ashtead’s innovative subsea equipment helps them to achieve this, which also forms part of APICORP’s development strategy to help transform the Arab energy industry through innovation.

The market opportunity for Ashtead is therefore significant, and the investment by APICORP will allow the company to expand its service offering in the subsea IRM (inspection, repair and maintenance) sector of the oil and gas industry. The investment will also enable Ashtead to expand its geographical reach, with the Middle East being a particular area of interest and focus.

Dr Raed Al Rayes, Deputy CEO and General Manager of APICORP, commented, “We are pleased to have completed the acquisition of a stake in Ashtead. It perfectly matches our stringent acquisition criteria, and is in line with our strategy of rebalancing our portfolio by making value adding equity investments in the energy sector. Investing in a global services firm such as Ashstead also diversifies our exposure further across the broader energy sector. This investment is also aligned with our aspiration to bring cutting edge technologies to the Arab region, in support of the industry’s future development.”

“Ashtead’s market position, advanced technology, experienced management team, and track record of achieving cost savings for their clients in the oil industry, leave it well placed to take advantage of the prevailing economic conditions. We are looking forward to working with Ashtead’s executive team and applying our own industry knowledge to achieving further growth,” he added.