Norway’s Akastor to sell Fjords Processing for $144.9m

Norwegian-based oil services investment company Akastor has signed an agreement to sell Fjords Processing to National Oilwell Varco (NOV) for Nkr1.2bn ($144.9m).

Fjords provides wellstream processing technology, systems and services to the upstream oil and gas industry. It also delivers solutions for separation and treatment of oil and gas.

Akastor CEO Kristian Røkke said: "We are proud of what the Fjords organisation has accomplished in recent years with improved operational performance and expanded business opportunities.

"Fjords is performing well and we are pleased to be selling to NOV, which is committed to further growing the business globally."

Under Akastor's ownership, Fjords has streamlined operations and expanded its footprint in key regions.

NOV CEO Clay Williams said: "We see significant potential in combining the capabilities of Fjords technology with our existing NOV platform, which includes complementary solutions and services, as well as a broad infrastructure to enable market expansion and significant cost reductions. 

“The production and process solutions that our combined businesses offer will enable operators to continue to meet the increasing technical challenges our industry faces while reducing their marginal cost per barrel."

The transaction is expected to realise an accounting gain of about Nkr650m ($78.5m), and release about Nkr1.15bn ($138.9m) for Akastor.

Subject to clearance from Norwegian and Korean competition authorities, the transaction is slated for completion in the fourth quarter of this year.

NOV designs, manufactures and sells equipment and components that are used in oil and gas drilling and production operations.