Transfield Services acquires North Dakota oil-field services firm

Transfield Services announced today that it has acquired US based Steier Oil Field Service.

Steier has provided upstream maintenance and capital works for 40 years to the oil and gas industry in the Williston Basin area of North Dakota.

Steier provides light well site construction services, flow line installation and thru-life mechanical maintenance to blue chip oil producers, and has a strong reputation for quality of service. It employs approximately 100 people.

Under an asset sale agreement, Transfield Services will acquire plant and equipment as well as existing contracts and workforce.

“This acquisition is directly consistent with our strategy to provide higher value integrated services to the upstream resources sector,” said Peter Goode, Transfield Services Managing Director and CEO. “It is expected to be earnings and value accretive from the date of purchase.”

North Dakota is now the USA’s second highest oil producing state behind Texas, and ahead of Alaska and California with approximately 6,600 wells producing half a million barrels of oil as well as half a million mcf of natural gas per day[i]. State Government data shows accelerating production, and its forecasts predict up to 33,000 wells could be drilled over the next 14 years with estimates of 10-14 billion barrels of high quality crude oil in total being recoverable.

Transfield Services Resources and Energy business in the US currently offers a comprehensive suite of maintenance, turnaround and construction services, working in approximately 40 of the 150 refineries in the USA. Its longstanding customer base includes some of the largest oil and gas and chemical companies in the world, including BP, ConocoPhillips, Chevron, ExxonMobil, Shell and Dow.

Transfield Services was advised on the transaction by Baker and McKenzie, Flagstaff Partners and KPMG.

[i] North Dakota Industrial Commission, Department of Mineral Resources, Oil and Gas Division, March 2012 media release

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Transfield Services employs over 19,000 people across 18 industries and 10 countries. We are a global provider of operations, maintenance and construction services to the Resources, Energy, Industrial, Infrastructure, Property and Defence sectors.
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