Business
Closure of facilities and sale of E&P assets
Closure of facilities and sale of E&P assets.
About this update from Hunting Plc
[{"type":"text","content":"\n\n\n\n\n\nFor Immediate Release\n\n\n24 August 2023\n\n\n\n\n\n \n \n \n \n \nHunting PLC\n \n(\"Hunting\" or \"the Company\" or \"the Group\")\n \nClosure of facilities and sale of E&P assets\n \nHunting PLC (LSE: HTG), the global engineering group, today announces that as part of a wider programme to drive higher operational efficiencies and reduce future cost outflows, it has commenced a further restructuring of its operating footprint, in addition to disposing of its legacy non-core exploration and production assets.\n \nWithin the EMEA operating segment, the manufacturing and assembly operations of the Group's main well testing site are to be transferred from the Netherlands to Dubai, which will lead to the closure of a facility at Velsen-Noord, with activities in the Netherlands to be merged into a single location. Sales, engineering and service support functions will be maintained in the Netherlands to support European clients. Hunting's Dubai operations are to be relocated to a larger, higher efficiency facility in the UAE to accommodate the manufacturing operations of the well testing business, which also positions Hunting to capitalise on the strong market outlook for the Middle East in the long term. Hunting will retain a single facility in Velsen-Noord to support oil and gas and energy transition clients across Europe.\n \nHunting Titan has commenced the closure of its Oklahoma City operating site and will transfer the manufacture of perforating systems to the Group's Pampa, US, and Monterrey, Mexico, facilities, which have both benefited from recent investment in new production capacity. A distribution centre will be retained in the area to continue to service clients.\n \nSince the start of 2023, Hunting has also divested the majority of its legacy non-core exploration and production assets held by its wholly-owned subsidiary Tenkay Resources, Inc. The disposals have been completed on an asset-by-asset basis, with Hunting now retaining a working interest in a single offshore field. As part of the disposal process, Hunting has negotiated the transfer of the majority of the non-producing assets and respective future plug and abandonment liabilities, which have reduced Hunting's possible exposure to future decommissioning costs.\n \nJim Johnson, Chief E...