Clough explores Covus full ownership

Clough is looking to move to 100 per cent ownership of its Osborne Park-based subsidiary Covus Corporation, which provides specialist underwater engineering and associated services.

The move comes after the recent retirement of Vic Hall as chief executive of Clough’s oil and gas division. He has since been replaced by former Technip executive Stephen Rogers.

Clough currently owns about 70 per cent of Covus, with the balance owned by a group of eight managers, including Mr Hall and Covus’ current chief executive Steve Brown.

Mr Brown said the change of ownership was being discussed but the parties had yet to reach an in-principle agreement.

Covus was established in 1998 and has about 30 staff. It has completed projects for the oil and gas industry in Australia, South East Asia and the Middle East.

Clough spokesman Robert Ash said Covus fitted well with the group’s existing sub-sea business and its future growth plans.

“Clough is seeking to move to 100 per cent,” he said.

Mr Ash added that Clough was in negotiations with the owner of a deepwater dive support vessel, which could be used to expand its service capability.

Under the proposed joint venture, the current owner would retain the vessel while Clough would provide work options, with Covus taking a lead role.

This follows Clough’s recent announcement that it plans to charter a cablelay ship and convert it into an offshore construction service vessel, with a specialist deepwater and sub-sea construction capability.

Clough’s oil and gas division has been successful in recent months in winning major international contracts.

This includes a $280 million contract from India’s national oil resource group, Oil and Natural Gas Corporation, to develop the first deepwater oil and gas field off India’s east coast.

Mr Hall said at the time it was the largest offshore project ever awarded to Clough, and followed a letter of intent from British Gas for the Panna field development, also in India.