The Press and Journal (Inverness, Highlands, and Islands)
Frontrow Energy expands Technology and services group snaps up 50% Clearwell stake
(01224) 343356 An acquisitive Aberdeen oil and gas group which is building a portfolio of cost-cutting technology and services has added another venture to its fold.
Frontrow Energy Technology Group, which is backed by senior industry leaders and venture capital, has acquired Clearwell Oilfield Solutions, an oil and gas technology company based in Southampton.
Frontrow snapped up a 50% stake in Clearwell from MSL Oilfield Services, which retains the other 50%. Clearwell provides a non-intrusive, chemicalfree system to remove mineral build-up – known as scale – in pipelines.
Stuart Ferguson, chief executive of Frontrow, said: “Increasing water production from maturing oil field basins tends to bring with it Inverness Office: Tel: (01463) 272200 many problems, including corrosion damage and scale build-up, which can substantially reduce the economic life of fields.
“The oil field scale challenge alone costs the industry billions of dollars each year.
“With the global market for oil field scale inhibitor set to reach $700million by 2020, we see tremendous potential for Clearwell.
“Clearwell is aligned with our ethos of dramatically reducing costs in the oil and gas industry, and will significantly add to our existing group of companies, which have technology and innovation at the heart of all they do.”
Clearwell, which will relocate its head office in Southampton to Frontrow’s technology centre in Aberdeen, plans to grow its existing number of units in the field by around 400% over the next five years.
Martin Clark, chief executive of MSL Oilfield Services, said: “We have units in operation across the world, many in the US and Canada, and have been delivering solutions to a string of major oil and gas players. With the support of Frontrow, we plan to maximise Clearwell’s full international potential.”
It comes after Frontrow secured a £10million investment from the Business Growth Fund in January.
The group was launched earlier this year by Mr Ferguson, who spent nine years at Weatherford International, and former Expro Group chief executive Graeme Coutts.
Their investment firm, Frontrow Energy Partners, has been steadily growing its portfolio since 2013, including Romar International, Electro-Flow Controls, CR Encapsulation and HCS Control Systems. Tel: (01224) 343159