OEG Group's acquisition marks a pivotal moment in the energy sector's evolution.
Topics covered
In a significant move within the energy sector, Apollo Global Management, a prominent American asset management firm, has announced its acquisition of a majority stake in Aberdeen’s OEG Group. This deal, valued at over $1 billion (approximately £770 million), underscores the growing interest of investors in the energy market, particularly in offshore services.
OEG Group: A leader in offshore energy services
Founded in 1973 and headquartered in Aberdeen, OEG Group has established itself as a key player in the offshore energy sector, providing essential services for oil, gas, and wind production. With a workforce exceeding 1,300 employees and operations spanning over 65 countries, OEG has become a vital link in the global energy supply chain.
The company boasts one of the largest fleets of cargo carrying units (CCUs) in the world, with more than 75,000 units facilitating the transportation of cargo to and from offshore installations.
A strategic acquisition amid rising energy demands
The acquisition comes at a time when the energy sector is witnessing a surge in demand, driven by the increasing need for electricity from data centers and advancements in artificial intelligence. Apollo’s investment strategy has focused heavily on climate and energy transition, with approximately $58 billion allocated to such initiatives over the past five years. This acquisition is seen as a tremendous opportunity to leverage OEG’s established reputation and operational capabilities to meet the evolving needs of energy producers globally.
Leadership perspectives on the acquisition
John Heiton, CEO of OEG, expressed optimism about the acquisition, stating, “Since our company’s founding, we have worked hard to establish OEG as a global leader in delivering core services throughout the offshore energy value chain.” He emphasized the company’s commitment to enhancing its capabilities as a key partner in the energy transition. Wilson Handler, a partner at Apollo, echoed this sentiment, highlighting OEG’s integrated business model and the potential for future growth as demand for efficient energy production and renewable power increases.
The deal marks a significant transition for OEG, which was previously acquired by Oaktree Capital Management in 2023. Oaktree and other shareholders will retain a minority equity interest in the company, ensuring continuity as OEG embarks on this new chapter under Apollo’s stewardship. As the energy landscape continues to evolve, the partnership between Apollo and OEG is poised to unlock new opportunities for innovation and growth in the offshore energy sector.
