In this scenario assets are transferring from one operator to another. Both organisations have the systems, information, networks and personnel to run energy assets. Such M&A projects arise when one Operator wishes to reorganise their production portfolio and reallocate capital to other areas. This creates an opportunity for another Operator to acquire these assets, with the aim of extending their life, increasing production and potentially new developments if and when government policy permits it.

The complexity is greater than for duty holder transfers. Considerable due diligence is required post-deal, and ideally via a technical assessment pre-deal. These steps ensure that the changes to dozens of systems is understood. The new owner will have suitable systems, but it is common to take the most pragmatic path during the transfer and utilise the same systems as the seller. This increases the breadth of systems, but that can be rationalised some time after the transfer. It has the virtue of maintaining stable operations and gives familiarity to the people running the assets, including the supply chain.

We have increasingly seen a shift from majors and super-majors to divest UKCS assets as they change their global priorities and investments. This has been attractive to new owners, who are characterised as new entrants to the market backed by private equity or by existing non-operators / JV partners who are evolving into full Operators.

This is the most complex type of M&A transfer as the new entrant or non-operator will not have the necessary systems or scale of business to run the assets. This requires considerable analysis to design the whole IT environment from the ground up and then to execute the transfer. This involves data centres, in the order of a hundred applications, networking, telephony, radio, huge data transfers, and security for IT and Operational Technology (process control). This is our speciality.

We understand the whole environment, are independent of technology vendors, and know what is essential in order to support the safety cases and the critical path for establishing the new systems at pace, with appropriate risk mitigation and cost control. This lays the foundation for a successful new Operator, giving them confidence and time to fully understand the assets and maintain production safely. We can then go further, enable deeper insights to drive increased production, new and more efficient ways of working and maximise the value of the acquisition.