Africa Oilfield Logistics Limited Acquires Strategic 20% Interest in Energy Resources Group Africa
Africa Oilfield Logistics Ltd, the AIM listed African focused support services and logistics company, is pleased to announce that its 49% owned subsidiary, Ardan Risk & Support Services ('Ardan'), has acquired a 20% interest in Energy Resources Group Africa Limited ('ERG') (the 'Acquisition'), a specialist provider of professional onshore and offshore safety, survival and emergency response training, targeting companies operating in the oil and gas industries. The Acquisition further strengthens the Company's competitive offering, is revenue enhancing, provides cross selling opportunities, particularly for the rapidly expanding medical division and increases Ardan's exposure to oil and gas operators in East Africa.
Training, in particular of local personnel, is critical for companies operating in the oil and gas industry. The development of hydrocarbons by international companies has to be achieved by utilising local personnel and ERG is a market leader in this field. With over 30 years operating experience and an established client list, ERG has a proven reputation for providing a world class training service that meets the demands of the rapidly expanding African oil and gas industry. It boasts a state-of-the-art onshore and offshore training provision centre, which is based in the Westlands district of Nairobi, Kenya, and also provides personal courses offsite, enabling the company to fully target all client training requirements. Additionally, the company works closely with industry organisations and regulators to pioneer the development of many industry standards, ensuring that its training services meet these requirements.
Ardan is already at the forefront for the provision of international standard medical support services, both on site and through medical evacuation in Africa. Management believe that safety, survival and emergency response training runs in tandem with medical and healthcare education initiatives, therefore making the acquisition highly synergistic.
Africa Oilfield Director Andrew Groves said, "Ardan's acquisition further strengthens the Company's competitive product offering as it continues to affirm its position as a leading support services and logistics company in Africa. With over 30 years operational experience and an established client base, ERG represents a compelling investment opportunity. Ardan, which already has an international client base, is focussed on maximising cross-selling opportunities with ERG in order to further extend the Company's reach, capitalise upon the current hydrocarbon and mineral boom in East Africa and generate long term revenue streams for the group."