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Petrofac acquires Scotvalve to further expand its mechanical services operation

International oil & gas facilities service group Petrofac (LSE: PFC) has acquired privately held Scotvalve Services Ltd for an initial payment of £3 million, with up to a £2 million in further performance related payments due over the next three years. The newly acquired mechanical service group will allow Petrofac to provide repair and maintenance services across a wider geographic area.

Scotvalve was founded in 1985 and it currently provides the servicing and repair of oilfield pressure control equipment.

The Aberdeen based Scotvalve has the capability to provide its services to the oil & gas sectors in the Middle East and North Africa, thus expanding Petrofac’s existing services in the region. The company’s Offshore Engineering & Operations business operates mechanical services from its workshop in Abu Dhabi, United Arab Emirates (NASDAQ:UAE).

In addition to its UAE based workshop, Petrofac also provides mechanical services to oil and gas producers through its joint venture with Saudi Arabian investment company, the Zamil Group. The alliance with the Zamil Group enables Petrofac to deliver essential equipment maintenance and reconditioning services internally within Saudi Arabia.

Disclosure: The author holds no positions in the company