BUE and Viking Standby mergeNews // June 7, 2002
The new company is expected to have a combined turnover of £45m and will employ more than 1,100 people - the majority being sea-based crew members, and have a total fleet of 49 vessels.
BUE Viking will be owned 50:50 by Edinburgh-based BUE Marine and Norwegian-based Viking Supply Ships. A decision on the location of BUE Viking's North Sea headquarters will be taken within the next few weeks.
David Hekelaar, current Managing Director of Viking Standby, has been appointed Managing Director of BUE Viking with BUE's Peter Hingston becoming Operations Director. Hekelaar and Hingston will join the board of the new company, which will also have tworepresentatives each from BUE Marine and Viking Supply Ships.
Both companies believe the merger will enable the new business to compete more effectively in a changing market and bring much-needed consolidation to the sector. BUE Marine Managing Director Carl Rolaston said: "This is a good deal for both companies and provides a solid foundation to consolidate and develop our business in the North Sea stand-by sector. The new company will be in a much stronger position to develop new ideas and deliver new vessels to meet the demands of our customers."
David Hekelaar said: "The merger will bring some much-needed consolidation to the sector and gives us critical mass to meet the challenges of the future. It will also enable us to provide an extended and comprehensive service to the oil companies."
Both companies are aiming to complete the deal by July and to fully integrate their activities by December this year.