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    Leading players invest in TSMarine

    News // January 30, 2008

    Two of Europe’s leading investors, 3i and ABN AMRO Merchant Banking, are between them investing £53 million ($US104 million) in Aberdeen-based TSMarine (Contracting) Ltd.

    In less than four years, TSMarine has established itself as a leading player in the niche subsea rigless intervention and decommissioning market on a global basis. With an estimated 2007 turnover of £55 million and over 120 employees worldwide, TSMarine offers a range of rigless well intervention, decommissioning and construction support solutions to the global subsea oil and gas industry.

    The investment underlines the confidence in TSMarine’s growth prospects in the rapidly expanding subsea oil and gas sector, which was worth a reported US$33 billion in 2007 and is expected to grow to over US$41 billion in the next four years.

    CEO of TSMarine, Alasdair Cowie, said: “Attracting investment from two leading financial players is a major coup for TSMarine and will allow us to fast-track our ambitious international growth strategy, which has already seen us realise 50 per cent of our revenues from overseas business in 2007."

    “Global expenditure in subsea decommissioning and rigless intervention is forecast to rise by 170 per cent over the next eight years. Key to our ability to tackle the expansion in this market is access to high specification assets that meet current and future industry demands."

    “This is demonstrated through our recent investment in new-build vessels and specific rigless intervention and decommissioning operating systems, designed especially for this niche sector. In 2007 ABN AMRO Bank provided the £130 million debt facility to finance the ongoing vessel build programme in Spain, with the two vessels due to join the current fleet in 2009.”

    Colin Burnett, Director of 3i’s Oil, Gas & Power team and Bruce Roe, Managing Director at ABN AMRO will join the board of TSMarine.

    Colin Burnett stated: “TSMarine is a high quality business.  The company has a strong and experienced management team which has built a market leading position in a short period of time.  TSMarine has developed an advanced vessel fleet which enables it to provide a wide range of subsea service solutions to customers. We look forward to TSMarine’s continued growth in what we believe is an exciting market.”

    Bruce Roe added: “ABN AMRO has supported TSMarine over the last 18 months and led its innovative vessel financing in early 2007. We are delighted to provide further support by injecting substantial new equity into the company. TSMarine now enjoys the sponsorship of two major financial institutions.  This will further its goal of becoming one of the leaders of the rapidly expanding subsea oil and gas services industry."

    TSMarine’s advisers in the deal were Simmons & Co and Maclay, Murray, Spens.

    Industry body, Subsea UK welcomes the transaction. Chief Executive, David Pridden says: “It is great to see major investment in a UK-based company which is pro-actively targeting the subsea rigless intervention and decommissioning end of the market. With the high oil price, much of the focus is currently on subsea production but abandonment has to be tackled and the UK will miss out on a major opportunity if it does not gear up for this forthcoming work programme. TSMarine’s approach to this market is to be applauded.”

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