Archer Limited, based in Bermuda, has announced plans to acquire Premium Oilfield Services, LLC, a US-based well services provider specialising in fishing and plug & abandonment (P&A) operations. Premium is known for its experienced workforce and strong service reputation with major oil and gas operators.
This move is part of Archer’s strategy to expand its presence in the Gulf of Mexico, where its combined client base with Premium covers over 80% of the projected $15 billion deepwater P&A and decommissioning market through 2040.
The US$20 million acquisition will be financed through a planned private placement. It is expected to close shortly after the placement is completed, subject to standard closing conditions, including financing.
One key benefit of the deal is Archer’s acquisition of a well-maintained fleet of fishing equipment valued at $35–40 million, which will cut rental costs and boost efficiency. The acquisition will create cost and capital synergies and is expected to deliver a full return on investment within two years.
Financially, the deal is seen as highly accretive. Archer anticipates a 5% boost to annual EBITDA and an 8–10% rise in annual cash flow, based on pro-forma results and synergies. This supports the company’s strategy to increase shareholder returns and reduce debt.
This acquisition builds on Archer’s strong M&A track record. Since 2023, the company has invested around $90 million in bolt-on acquisitions, generating approximately $30 million in EBITDA, reflecting a multiple of around 3x EV/EBITDA. Archer aims to continue targeting accretive, synergy-driven deals in the well services space.
