New Canadian Arctic transportation power
Gary Park
A bundle of transportation and oilfield services in the Canadian Arctic will be transferred into a separate public company following a C$936 million merger of Mullen Group Income Fund and Producers Oilfield Services.
Details of the Arctic transaction have yet to be finalized, but the prospects are large, said Murray Mullen, company chairman and chief executive officer.
He described the northern opportunities as “big, broad and unknown,” and his firm “knows the area, we know the people and we’ve made some good investments,” but it’s too early to be more precise, he said.
The company is among several eying long-term growth in the Arctic if the Mackenzie Gas Project proceeds.
Mullen said the merger will create one of the largest oilfield transportation companies in North America. The plan of arrangement is scheduled to close in May, subject to regulatory and unit holder approval.
The new entity is expected to have combined revenues of greater than C$1 billion, said Stephen Lockwood, the company’s president and co-chief executive officer.
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