Foster Wheeler AG (FWLT) recently acquired UK’s upstream consultancy company Ingen Ideas. The financial details of the transaction were not disclosed. Ingen will be included in Foster’s EMEA (Europe, Middle East, Africa) Upstream operations, which is already present in U.K.
The Ingen acquisition is part of Foster’s long-term strategy to expand its upstream capabilities, particularly in the offshore areas, and also to broaden its offering to include full oil and gas value chain. Foster believes that by providing high-quality, high value-added consultancy services to its clients at an early phase of oil and gas project development, the company will develop long-term relationships with its clients, thereby strengthening its position for future phases of the projects.
The oil and gas industry is usually divided into three major sectors: upstream, midstream and downstream. The upstream sector includes the searching for potential underground or underwater crude oil and natural gas fields, drilling of exploratory wells, and subsequently drilling and operating the wells that recover and bring the crude oil and/or raw natural gas to the surface.
Ingen is one of the leading upstream consultancy providers specializing in field development, process engineering including subsea and topsides design, flow assurance, enhanced oil and gas recovery, carbon management and petroleum engineering.
Recently, Foster had acquired Mexican engineering company NorthAm Engineering S.A. DE CV for an undisclosed amount. Through this acquisition, the company intends to expand its operations in the growing Mexican market.
Foster Wheeler currently has a Zacks Rank #3 (Hold). Some other stocks worth a look at the moment are Orion Marine Group Inc. (ORN), Primoris Services Corporation (PRIM) and Harris & Harris Group, Inc. (TINY). All three carry a Zacks Rank #2 (Buy).Read the Full Research Report on FWLT
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