2011-03-09-2011-03-07

To buy oilfield technology company specializing in subsea tooling services used in the plugging, abandonment, decommissioning of offshore production platforms & subsea wellheads.

Oceaneering International Inc., Houston, (NYSE: OII) plans to acquire Norse Cutting & Abandonment AS for approximately $60 million.

Norse is an oilfield technology company that specializes in providing subsea tooling services used in the plugging, abandonment, and decommissioning of offshore oil and gas production platforms and subsea wellheads. In addition, it performs specialized maintenance and repair services on Norwegian offshore production platforms. For the year 2010, Norse generated total revenue of approximately $56 million, split almost evenly between the North Sea and the U.S. Gulf of Mexico (GOM).

Since its inception in 1999, Norse has designed, developed, and placed into service innovative tooling solutions such as an internal multi-string casing cutting system, a wellhead removal tool that includes cutting capabilities, and tools for removing single and multiple conductor pipes. Norse is currently engaged in projects to develop new tooling technology to serve the emerging rigless subsea plug, abandonment, and decommissioning market.

T. Jay Collins, Oceaneering president and chief executive, says, "This acquisition is consistent with our strategy to expand our subsea business. It will increase our subsea tooling product line and enable us to provide some tooling as a service line, as we do with our installation, workover, and control systems. It will also enhance our ability to participate as a subcontractor in the plug, abandonment, and decommissioning market both in the North Sea and in the GOM."

Collins adds that the company intends to retain key Norse management and its qualified work force.

The deal is expected to close by March 31.