Reach Subsea has entered an agreement with Equinor Ventures to acquire OCTIO, a provider of monitoring solutions for oil fields, CO2 storage reservoirs and offshore windfarms
Reach Subsea chief executive Jostein Alendal said, “Acquisition of OCTIO will deepen Reach Subsea’s technology competence and expand our value chain, accelerating the company’s strategy to become a full-service provider of subsea data and solutions for clients globally.”
The deal is also expected to enhance Reach Subsea’s capability in the competence required for gathering and processing seabed data for offshore windfarms.
Mr Alendal said, “We have worked with OCTIO for several years and are well-acquainted with their cost-efficient and highly-accurate survey and monitoring technology, and how it enhances data value for clients and optimises solutions for monitoring CO2 reservoirs.
“In addition, OCTIO’s patented technology and competence will strengthen the data gathering, processing and analytics capabilities for Reach Remote, our unmanned surface vessel solution that we will introduce in 2023.” OCTIO’s monitoring technologies are typically deployed and recovered using remotely operated vehicles.
Reach Subsea said the transaction is expected to have a number of benefits. It will strengthen Reach Subsea’s survey and inspection data capability with patented technology and expand Reach Subsea’s services portfolio into the carbon capture and storage (CCS) segment through a portfolio of cost-effective monitoring tools, including 4D gravity, microseismic, and seafloor deformation monitoring.
OCTIO’s core monitoring technology, 4D gravity, has been successfully deployed on two sequestration projects in Norway, Sleipner and Snøhvit.
The deal will also create significant revenue synergies from the cross-selling of Reach Subsea and OCTIO’s services to each other’s customer base. It will add another pillar to Reach Subsea’s broader strategy for technology and data processing, as well as adding key competence required for gathering and processing of seabed data for offshore windfarms.
Under the terms of the agreement, Reach Subsea will acquire Equinor’s interests in OCTIO, as well as an associated company MonViro, which is owned by OCTIO employees. Reach Subsea will settle the acquisition in cash, which will be funded from its financial resources. The transaction is expected to close in Q4 2021.
“We are excited to be joining forces with Reach Subsea, a fast-growing subsea operations provider serving energy majors across the world,” said OCTIO chief executive Leon Løvheim.
“Our unique monitoring solutions and data offering will be highly complementary to Reach Subsea and will offer significant benefits to the clients Reach Subsea serves.”
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