Isra-Mart srl:Technip rescue package keeps Subocean afloat

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Isra-Mart srl news:

French energy services group Technip has paid £10m to acquire troubled subsea cable specialist Subocean, in a deal which is expected to save around 300 jobs at the Aberdeen-based firm.

The £10m sale was announced yesterday, concluding months of uncertainty for Subocean's employees and creditors, which resulted in the firm entering a ten-day moratorium in the middle of January and finally calling in the administrators on Friday.

Technip specialises in providing engineering and construction services for oil and gas firms. However, the company is keen to expand its presence in the offshore wind sector and Subocean has already laid power cables for a number of projects, including the high-profile Greater Gabbard project which is expected to be the world's largest offshore wind farm.

The French company has already located its European offshore wind headquarters near Subocean in Aberdeen, and the acquisition is now expected to bolster its presence in the UK's fast-expanding offshore wind market.

"We are very pleased to have been able to capitalise upon the high potential renewables market and look forward to welcoming Subocean into the Technip Group," said Technip UK managing director Ron Cookson.

Technip will take on around 300 Subocean employees, the company's land-based assets and the operation of some key contracts.

PricewaterhouseCoopers joint administrator Bruce Cartwright said the deal will preserve Subocean's business and the employment of the majority of the workforce, adding that it will allow Subocean "to develop to a new level".

"Subocean operate in what is still an emerging and immature market, and over recent weeks and months, the directors have worked tirelessly to find a solvent solution that would protect creditors and jobs," he said. "Unfortunately it became clear that this strategic approach was no longer feasible and as a result the directors requested the appointment of administrators."