Apollo’s Acquisition of OEG Energy Group: A Game-Changer in the Offshore Energy Industry
London and New York, March 19, 2025 – In a significant move for the offshore energy sector, Apollo Global Management Inc. (NYSE: APO) announced that funds managed by Apollo affiliates have agreed to acquire a majority stake in OEG Energy Group (“OEG” or the “Company”), a leading player in offshore energy solutions. The transaction, which values OEG at over $1 billion, sees Oaktree Capital Management, LP (“Oaktree”) and other investors retaining a minority equity interest in the Company.
Background on OEG Energy Group
OEG Energy Group is a global provider of integrated offshore energy solutions, with a strong focus on safety, reliability, and efficiency. The Company operates in the North Sea, the Gulf of Mexico, and other international markets, offering a comprehensive range of services from engineering, procurement, construction, and installation (EPCI), to maintenance, modification, and operations (MMO).
The Deal: A Strategic Move for Apollo
For Apollo, the acquisition of OEG marks a strategic move to expand its footprint in the energy sector. Apollo’s expertise in infrastructure investing, coupled with OEG’s strong market position, is expected to create significant value for all stakeholders involved. The deal is expected to close in the second quarter of 2025, subject to customary regulatory approvals and other conditions.
Impact on Apollo’s Stakeholders
Apollo’s shareholders stand to benefit from the acquisition of OEG. The deal is expected to generate attractive returns, driven by the Company’s robust cash flows and growth potential. Moreover, OEG’s strong operational capabilities and global presence will provide Apollo with a platform for further expansion in the energy sector.
Impact on the Offshore Energy Industry and the World
The acquisition of OEG by Apollo is a clear sign of growing investor interest in the offshore energy sector. With a focus on renewable energy sources and the ongoing transition towards a low-carbon economy, the offshore energy sector is poised for significant growth. This deal is expected to set a trend, with more private equity players likely to follow suit.
Moreover, the transaction is expected to have a positive impact on the global energy landscape. The increasing demand for cleaner energy sources, coupled with the depletion of onshore resources, is driving the exploration and production of offshore oil and gas fields. The offshore energy industry is expected to play a crucial role in meeting the world’s energy demands while reducing carbon emissions.
Conclusion
In conclusion, Apollo’s acquisition of OEG Energy Group marks a significant milestone in the offshore energy sector. The deal is expected to generate attractive returns for Apollo’s stakeholders while providing a platform for further expansion in the energy sector. The transaction is also a clear sign of growing investor interest in the offshore energy sector, which is expected to play a crucial role in meeting the world’s energy demands while reducing carbon emissions.
- Apollo acquires majority stake in OEG Energy Group for over $1 billion
- Oaktree and others retain minority equity interest in the Company
- Strategic move for Apollo to expand its footprint in the energy sector
- Positive impact on Apollo’s shareholders and the offshore energy industry
- Expected to set a trend for private equity players in the offshore energy sector
As the world continues its transition towards a low-carbon economy, the offshore energy sector is expected to play an increasingly important role. With a focus on renewable energy sources and the depletion of onshore resources, the sector is poised for significant growth. Apollo’s acquisition of OEG Energy Group is a clear indication of this trend and is expected to set a positive tone for the industry in the coming years.
