Archer closes buy of 50% stake in geothermal firm Iceland Drilling
Yellowstone National Park in Montana. Author: a.dombrowski. License: Creative Commons, Attribution-ShareAlike 2.0 Generic (CC BY-SA 2.0)
November 18 (Renewables Now) - Norwegian oil services company Archer Ltd (LON:0RBA) said it has completed the acquisition of a 50% shareholding in geothermal drilling firm Iceland Drilling Company Ltd for a total consideration of USD 8.25 million (EUR 7.99m).
The investment agreement was inked at the beginning of August. The remaining 50% stake is kept by Kaldbakur ehf.
Iceland Drilling specialises in both high and low temperature geothermal environments, having drilled more than 500 deep wells since 1970. The company employs 90 people and its business is associated with annual revenue of about USD 40 million.
“Geothermal energy is a renewable energy source that offers a stable base load and has direct overlap and synergies with Archer’s core services,” Archer's CEO Dag Skindlo commented when the deal was unveiled.
Archer provides drilling services, well integrity and intervention, plug and abandonment, and decommissioning to its upstream oil and gas clients. It operates in 40 locations in 19 countries.