Shelf Subsea merges with Fugro TSM

UPDATED: Underwater services company Shelf Subsea announced in August 2016 plans to acquire the local operations of global geotechnical, survey and geosciences company Fugro in a deal worth $40 million, but the deal was cancelled in December 2016.

Shelf Subsea was formed in August last year after Nedlands-based investment manager Viburnum acquired oil and gas diving contractor Cal Dive International Australia (in partnership with Houston company SCF Partners), in a deal estimated at $US17 million at the time.

Under the August 2016 agreement, Shelf was to acquire Fugro TSM, the global business’s Perth-based subsidiary, with $20 million to be paid in cash and the other half in shares, resulting in Fugro holding a 25 per cent stake in Shelf Subsea.

Fugro’s 285 staff were to be amalgamated with Shelf’s workforce of 15, with the combined business to be led by TSM manager Colin McGinnis as chief executive, while Shelf chairman John Edwards was to continue to serve in the same role.

The planned merger also involved the transfer of 1 owned vessel, 3 chartered vessels and 18 ROVs, and Fugro subsea offices in Perth and Singapore.

Fugro is a subsea contractor in the APAC region, offering a range of services to the oil, gas and marine industries, providing a full life field offering, including engineering, construction, inspection, repair and maintenance, intervention and decommissioning.

The company operates a fleet of vessels, an fleet of work and observation class remotely operated vehicles, and possesses a workforce with in depth subsea engineering capability.

Shelf Subsea is a commercial diving company providing saturation diving, air diving, and shallow water solutions primarily in the oil and gas sector.

Shelf owns and operates a mobile saturation dive system, eleven air systems and three shallow water dive and construction support landing craft.

It has been operating in the APAC region for more than 20 years, previously under the business name Cal Dive.

“The merger of TSM and Shelf creates a strong and exciting company that will offer a significantly enhanced range of subsea services in the Asia Pacific region,” Mr Edwards said.

“By combining Shelf’s extensive shallow water saturation and air diving capability with Fugro TSM’s proven experience in deep water, IMR and light construction our customers will benefit from our ability to provide integrated and competitive services in all water depths.

“I’m very excited to be part of the new team, many of whom I have worked with successfully in the past.”

In December 2016, Fugro issued a statement saying the deal had been cancelled.

"Parties were unable to reach agreement on some closing conditions, following which Fugro has decided to no longer pursue the transaction," it stated.