The John Wood Group is to a US-based shale-oil fracking company for about £125 milliion as the Scottish-based international energy services company eyes up potential new profits.
The Wood Group is acquiring Elkhorn Holdings Inc. (“Elkhorn”), a Wyoming-based provider of construction services for midstream oil and gas facilities in the US shale market.
Elkhorn, provides infrastructure-related services such as pipeline and facility maintenance, instrumentation and electrical, civil and mechanical construction, and fabrication to oil and gas and petrochemical companies, generated sales of approximately $250 million last year.
Based in Evanston, Wyoming, the company employs some 2,200 people at 11 locations across the Niobrara, Permian, Marcellus and Utica shale regions. The acquisition further boosts Wood’s US shale oil business. Elkhorn will continue to be led by its existing management team under chief executive Sean Sullivan.
Robin Watson, Chief Executive, Wood Group PSN, said: “The Elkhorn acquisition is an important part of our US shale strategy and will expand our service portfolio for our US onshore customers.” As a result, Wood Group PSN will have around 4,500 US shale-focused personnel.
Sean Sullivan, Chief Executive, Elkhorn, said: “We are extremely excited to be joining Wood Group. This combination will greatly benefit Elkhorn’s customers and employees given our collective breadth of service offerings. Elkhorn has achieved good growth over recent years, and we anticipate that in strong markets and with Wood Group’s support we will see this continue.”