Kotug Consolidates Offshore Sector Acquiring Seaways International
In the latest move toward consolidation in the offshore sector, Dutch offshore operator Kotug International entered into an agreement to acquire Seaways International. The 100-plus-year-old Dutch company said the move to acquire the Dubai-based company was designed to accelerate its growth in worldwide offshore floating energy facilities and respond to emerging market opportunities. After a prolonged downturn in the oil and gas sector, Kotug said that it expects growth as new offshore floating projects emerge in response to rising energy demand.
Seaways owns and operates a fleet that comprises of DPS-2 capability AHT’s, Fast Crew Suppliers, and cargo barges, and also provides terminal management services. Established in 1995, the Dubai-headquarter company has a primary focus on the Middle East, West Africa, India, and Singapore. The company’s business focuses on the field of FPSO/ FSO/ SBM/ Drill Rig support, sub-sea construction support, anchor handling, static/ocean towages, port/terminal handling, and tug & barge combinations. The addition of Seaways’ operations will especially strengthen Kotug’s presence in West Africa.
“The acquisition of the Seaways will mark an important milestone for Kotug. It fits our strategy to expand our (offshore) operations worldwide to meet the increasing demand for offshore support vessels,” said Ard-Jan Kooren, President & CEO of KOTUG. “The integration of the services and assets of the two leading companies will bring compelling synergy opportunities, leading to more efficient operations and enhancing significant value creation for our global customers.”
The intended acquisition of Seaways would be the largest in Kotug’s history the company noted and follows recent years in which Kotug has heavily invested in offshore support vessels and people. Kotug’s strategy is to expand its business in assisting worldwide floating facilities such as FSO, FPSO, FLNG, FSRU, and SPM Terminals.
“Since its incorporation 27 years ago, Seaways has built itself into a reputed offshore maritime company with a proven track record and a knowledgeable and experienced team,” said Captain Ashish Nijhawan, Managing Director of Seaways International. “KOTUG is an ideal fit for our people and our customers.”
The acquisition is expected to be completed in the second half of 2022. Both companies will now work on customary governmental and other approvals, with the aim of completing the transaction in July 2022.