EIB: InnovFin in DenmarkDecember 1, 2014
Hat: EIB: InnovFin in Denmark
Funding Scheme: 2014-12-01
Pgm2014 2020: Yes
First EIB loan under InnovFin in Denmark: EUR 25 million for Welltec’s innovations in oilfield service.
The European Investment Bank (EIB) has signed a EUR 25 million agreement with Welltec A/S, a highly innovative Danish oilfield services company, for its innovative development and engineering activities to help operators optimize the management and development of their assets throughout the life-cycle of their wells. This is the first EIB transaction in Denmark supported by the new generation of financial instruments for innovative and growth companies “InnovFin – EU Finance for Innovators”, with the financial backing of the European Union under Horizon 2020. “InnovFin MidCap Growth Finance” is specifically dedicated to improving access to risk finance for research and innovation projects of midcap and SME companies in the European Union.
The loan to Welltec will contribute to the development of advanced robotic solutions that can be used in the oil and gas development and production phases, such as well completions, conveyance and intervention services, and avoids the need for heavy-duty conventional equipment. The project will allow Welltec to continue in its technological leadership position in international markets, as it continuously innovates to reduce well construction times, speed up access and increase reservoir contact to extend the productive life of wells as they become more challenging to develop and maintain.
Welltec’s founder and CEO, Jørgen Hallundbæk, welcomed the signing of the agreement saying: “We are very grateful for the EIB’s support for our pioneering technology, which is helping to transform the upstream oil and gas industry with cleaner, safer and more sustainable means of meeting the world’s energy demands.” He added, “Our Flex-Well® concept challenges the conventional approach, enabling operators to unlock more from their assets and reduce the complexity and hazard potential of operations. With this funding for our development and engineering efforts, the EIB is becoming part of the disruptive innovation that serves to reduce the industry’s energy consumption and carbon emissions, while at the same time increasing total recovery and the viability of fields now and in the future. The EIB loan provides a unique opportunity to increase Welltec’s financial flexibility on attractive terms, as we continue to develop and deliver game-changing technology.”
European Investment Bank
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
Welltec® is a leading provider of robotic intervention services and completion solutions for the oil and gas industry, providing the world’s major O&G companies with cutting-edge technology to increase production and recovery in a safer and more sustainable way. In 2013, it operated across 28 countries with a workforce of over 1,000 and achieved revenues of USD 321m and EBITDA of USD 135m.
InnovFin financial products
Under Horizon 2020, the new EU research programme for 2014-20, the European Commission and the European Investment Bank Group (EIB and EIF) have launched a new generation of financial instruments and advisory services to help innovative firms access finance more easily. Over the next seven years, “InnovFin – EU Finance for Innovators” will offer a range of tailored products which will make available more than EUR 24bn of financing support for research and innovation (R&I) by small, medium-sized and large companies and the promoters of research infrastructures. This finance is expected to support up to EUR 48bn of final R&I investments.
InnovFin builds on the success of the Risk-Sharing Finance Facility developed under the seventh EU framework programme for research and technological development (FP7), which financed 114 R&I projects to the tune of EUR 11.3bn and in addition provided loan guarantees worth over EUR 1.4bn.
Backed by funds set aside under Horizon 2020 and by the EIB Group, InnovFin financial products support R&I activities, which by their nature are riskier and harder to assess than traditional investments, and therefore often face difficulties in accessing finance. All are demand-driven instruments, with no prior allocations between sectors, countries or regions. Firms and other entities located in EU Member States and Horizon 2020 Associated Countries will be eligible as final beneficiaries. These debt instruments will be complemented in the near future by a suite of equity instruments managed by the EIF.
InnovFin MidCap Growth Finance offers long-term senior, subordinated or mezzanine loans from EUR 7.5 to 25m for innovative larger midcaps (up to 3000 employees), but also SMEs and small midcaps.
Url description: IEB
Url info description: http://www.eib.org/infocentre/press/releases/all/2014/2014-268-first-eib-loan-under-innovfin-in-denmark-eur-25-million-for-welltecs-innovations-in-oilfield-services.htm?media=rss&language=en
Url info: http://www.eib.org/infocentre/press/releases/all/2014/2014-268-first-eib-loan-under-innovfin-in-denmark-eur-25-million-for-welltecs-innovations-in-oilfield-services.htm?media=rss&language=en