The acquisition of Easternwell represents Transfield Services’ latest initiative in delivering its strategy to build on its existing service offering by providing more technical and niche services in targeted end markets. The deal will strengthen Transfield Services’ position as one of Australia’s leading oil & gas service providers. It also offers Transfield Services earlier engagement with clients in the asset lifecycle. Easternwell also deepens Transfield Services exposure to growth opportunities within Australia’s expanding resources sector, such as in iron ore, conventional oil & gas and coal seam gas.
Queensland-based Easternwell is a leading Australian well services and well construction business, focused on the mining, oil & gas and infrastructure sectors. It provides mainly production-focused, high margin services both earlier in the asset lifecycle and throughout the production phase. Key services include well servicing and maintenance activities, coal seam gas drilling, production-related iron ore mine dewatering, backfill drilling, near-shore geotechnical drilling and dam remediation services.
Easternwell employs over 800 people across Australia and operates 65 rigs, with customers such as BHP Billiton, Cameco, Chevron, Rio Tinto, Santos and Woodside. Existing Easternwell senior management are expected to continue in the business and are rolling over a proportion of their equity in Easternwell into Transfield Services shares. Easternwell will report as part of the Transfield Services Australian and New Zealand business unit.
Transfield Services Managing Director and Chief Executive Officer, Peter Goode, said: “This acquisition is consistent with our stated strategic objective to expand our services and capabilities into adjacent sectors and to pursue higher value work.”
“Acquiring Easternwell enables Transfield Services to build out its existing suite of operations and maintenance services to include higher margin technical services.”
“The transaction will also enhance our ability to secure incremental downstream work and offer our clients a more integrated end-to-end service capability across the entire asset lifecycle, particularly in the oil & gas and minerals sectors.”
Continuing, Chief Executive Officer for Easternwell, Troy Campbell, said: “Easternwell has established a strong reputation and track-record in operating in remote locations, as well as developing long term customer relationships and a quality asset base. We are excited by this opportunity to join forces with Transfield Services and build on Easternwell’s existing position as the leading player to capture the growth opportunities in the sector.”