Magma's m-pipe® combines Victrex's PEEK polymer with high grade carbon fibre, enabling the complete re-design of subsea projects and the subsequent reduction in installed costs. Building on recent momentum, Victrex's investment will deepen the relationship between the two companies and support the continuing development of Magma's manufacturing capability. Victrex’s involvement as an equity partner, with strong experience of gaining market acceptance for innovative technology, will also help facilitate further adoption of m-pipe® across the oil and gas industry.
Commenting on today's announcement, Martin Jones, Magma Global CEO said: "We are very pleased to strengthen our relationship with Victrex as they take a minority equity interest in Magma. Today's announcement is a great endorsement of the progress we are making within the oil & gas sector and comes towards the end of an extremely active year for the business. Magma has continued to make significant progress in ensuring that m-pipe® is established as the technology of choice for demanding subsea applications within the oil and gas industry. The year has seen the launch of a leading rental system for hydraulic pumping for intervention, early production and temporary riser replacement, consisting of m-pipe® with an Integrated Deployment Package and crew, as well as the completion of the extended production facility at our UK headquarters in Portchester. While the Oil & Gas market remains challenging, Magma’s programme is focused on the application of m-pipe® in areas where is can deliver savings for operators. We anticipate next year to be equally busy despite the ongoing market pressures."
Martin Court, Victrex Executive Director, said: "Our strategic investment in Magma Global is in line with our move downstream into selected semi-finished and finished products, which offer customers more complete solutions, beyond simply materials. Magma is already one of Victrex's 'mega-programmes' and our investment will not only help underpin the project, it will enable us to bring our expertise of gaining market acceptance and adoption for new innovative technology into the project. With first meaningful revenues for Victrex during 2016, the long term potential remains attractive."
For further information: www.magmaglobal.com
About Magma Global Limited
With offices in the UK, US, Angola and Saudi Arabia, Magma’s mission is to deliver the world’s most reliable risers, jumpers and intervention lines for subsea exploration and production. Magma manufactures m-pipe®, a unique high quality, high strength and low weight carbon and VICTREX PEEK polymer pipe with a monolithic structure from bore to surface. m-pipe® provides superior performance in deep water and harsh offshore conditions, delivering significant reductions in risk and cost for offshore field development and operation. An independent report by Calash highlighted how m-pipe® reduced riser costs by up to 40%, similar studies for hydraulic intervention show savings of more than 30%. m-pipe® is able to withstand the high pressures, temperatures and flow rates required in today's subsea developments. With less susceptibility to fatigue and greater resistance to deterioration by fluids and gases, m-pipe® also reduces risk in subsea oil and gas systems, compared to traditional steel pipe. Founded in 2009 by its management team, in 2010 Magma Global Ltd received additional backing to accelerate its growth programme from Calgary-based Azimuth Capital Management and Copenhagen-based NES Partners. BGF Plc and SICP LLP have since joined our investor group, providing additional capital to support significant manufacturing capacity expansion.