Satellite services provider Inmarsat and RigNet, a provider of managed remote communications solutions to the oil and gas industry, today (2 August 2013) announced a deal for RigNet to distribute Inmarsat’s Global Xpress and L-band services to the energy sector, along with the sale of Inmarsat’s retail energy business to RigNet.
Under the terms of the agreement, RigNet will become a key Global Xpress distribution partner for the global energy sector and will offer Global Xpress and L-band services to RigNet’s growing customer base. In connection with the appointment, RigNet has entered into to a four-year Global Xpress capacity pre-purchase.
To further enhance the strategic value of the partnership, Inmarsat has agreed to sell to RigNet its retail energy operations, currently managed within the Inmarsat Solutions Enterprise business unit, for a total consideration of US$25 million.
The sale will include Inmarsat’s microwave and WiMAX networks in the US Gulf of Mexico serving drillers, producers and energy vessel owners; its VSAT interests in Russia, the UK, the US and Canada; its telecommunications systems integration business operating worldwide; and its retail L-band energy satcoms business.
In 2012, the operations subject to the sale had total revenues of $81 million. The overall transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close during or before the first quarter 2014.
RigNet, based in Houston, Texas, provides managed remote communication services in over thirty countries on six continents, covering over 1,100 oil and gas related sites ranging from drilling rigs to production facilities and energy vessels.
Rupert Pearce, Inmarsat’s CEO, said: " RigNet is the perfect partner for Inmarsat, supporting a large customer base of oil and gas VSAT customers, whom we expect to be at the forefront of the transition to Global Xpress services. This partnership prepares the way for a fast and successful take up of Global Xpress services in the global energy sector.”
Mark Slaughter, RigNet’s CEO and president, said: “As the two companies came together for discussions over a number of months – with RigNet evaluating high-throughput satellite providers and Inmarsat seeking a strong distribution channel into the energy market for its Global Xpress offering – it quickly became clear that this deal represented the best path forward for both companies.
“With the purchase of Inmarsat’s energy broadband business and the addition of Global Xpress to our transport options, we will broaden and deepen our capabilities to serve the oil and gas industry across the life of the field from drilling through production,” Slaughter added.