First Reserve bids for Abbot Group

Offshore staff

ABERDEEN, UK --Private equity firm First Reserve Corp. is set to acquire drilling services specialist Abbot Group for $1.8 billion.

Turbo Alpha, a newly incorporated company formed for the transaction, has firm pledges from Abbot's directors representing around 13% of the group's existing issued shares. Pending approval from the remaining shareholders, the deal should go through by spring 2008.

Abbot provides drilling services and rig operations, largely to major oil companies, throughout Europe, North and West Africa, the Middle East, the Caspian region, and Russia.

It claims to be the largest offshore platform drilling contractor in the North Sea, an international owner and operator of mobile offshore drilling units, and a leader in drilling rig design and construction, off- and onshore.

First Reserve plans to fund further expansion in Abbot's geographical strongholds, while Abbot's management will provide a further $50 million of equity.

12/20/2007