Latest news with #OEG
The Herald Scotland
6 days ago
- Business
- The Herald Scotland
OEG US deal as Aberdeen oil and gas outlook 'not great'
'Primarily during the last few years we've done a lot of acquisitions which were mostly focused on offshore wind," Mr Heiton said. "This one stands out as sort of our first oil and gas focused investment since 2021 when we acquired one of our major competitors. Read more: "We were awarded one of the big two oil producer contracts earlier this year in the Gulf of Mexico. The customer unfortunately won't allow us to mention their name, but the biggest two are BP and Shell, so take your pick. "It meant we needed some more equipment and that was how we got in discussions with one of our principal competitors as a way of sort of feeding that award." The company has effectively doubled its footprint in the US in terms of assets, employees and turnover, and now has a global headcount of approximately 1,500 employees. The UK, with 250 staff at the Aberdeen headquarters, remains the largest in terms of employment, now followed by 180 people in the US. The four-year contract in the Gulf of Mexico is worth "tens of millions", Mr Heiton added. Read more: Renewables contracts with the offshore wind sector continue to account for the majority of revenue, roughly 55%, at OEG and will represent the lion's share of future acquisitions even though discussions are taking place about other potential deals for offshore container operations that service the oil and gas industry. 'Frankly, we haven't made that many acquisitions [in the containers business] because there's not that many companies to buy," Mr Heiton said. "TRS driven by the contract, and they were people we had talked to off and on for frankly about the last four to five years already. "We also recognised them as an up-and-coming threat, so it was also a way to remove a threat as well." He added: 'This one is unusual in being a cargo logistics acquisition, which we have two others in discussion, but obviously discussions don't always lead to a deal. We have around 10 or 12 in discussions at the current time in offshore wind, so we still expect the majority of our M&A work to be in offshore wind going forward.' Read more: "Luckily", Mr Heiton said, OEG depends on oil and gas activity in the North Sea for only a small proportion of its revenue. The sector has been struggling under the UK Government's 78% on oil and gas operators via the Energy Profits Levy. 'Our oil and gas focused North Sea business is probably around about, certainly less than 10% of our overall business, but we are based here and we would love it if the government was more supportive of our domestic operations," he said. "We are a heavily production-focused business so we are not as affected by the new projects side, but also capital projects are what drive production. 'The outlook here is not great, the mood is not great. It has the benefit for us that we've managed to hire some really great people with really good experience and talents, but you would prefer there was a better domestic market and support from the government.' Apollo announced in March that it had agreed to acquire a majority stake in OEG from Oaktree Capital Management in a deal that valued the business at approximately $1 billion (£737 million). Apollo now owns about 70% of the business, with minority stakes retained by Oaktree and OEG's management team.
Broadcast Pro
11-07-2025
- Business
- Broadcast Pro
Du and Omantel activate Oman-Emirates Gateway subsea cable
The benefits of the OEG project extend beyond enhanced network capabilities, by serving as a crucial driver for economic growth and technological innovation in both the UAE and Oman. Du, the telecom and digital services provider, and Omantel, the provider of integrated telecommunication services in the Sultanate of Oman and a regional telecom and technology provider in the Middle East, have announced the activation of the Oman Emirates Gateway (OEG), a 275km international fibre optic submarine cable system that will enhance connectivity between the UAE and Sultanate of Oman. The cutting-edge project connects three strategic international data centres: datamena DX1 in Dubai, UAE, Equinix MC1 in Barka and Equinix SN1 in Salalah, Oman. OEG will be providing a seamless express connection and supporting the area's evolution into a global telecommunications hub. This initiative boosts the operational efficiency of existing networks and systems while enhancing speed, expanding connectivity, and elevating customer experiences with advanced commercial offerings. Karim Benkirane, Chief Commercial Officer of du, said: 'The Oman Emirates Gateway is far more than just an optical cable; it is a bridge towards future-proofing the digital infrastructure of the region. This project will be a cornerstone for hyperscalers, content providers, and international carriers, empowering them to enhance their presence in the UAE and Oman, and optimize their operational capability to meet the growing demands of the digital era.' Samy Al Ghassany, Chief Technology and Digital Officer at Omantel, remarked: 'The full activation of the Oman Emirates Gateway marks a pivotal milestone in our journey towards digital transformation in Oman and beyond. We are proud to contribute to the region's content enrichment and to establish a robust, high-capacity corridor that will empower businesses across Oman and the UAE. This achievement goes beyond mere connectivity; it propels the entire region towards innovation, growth, and global competitiveness.' The activated system delivers transformative benefits such as comprehensive resilience through dual routes (terrestrial and subsea) guaranteeing unmatched reliability and optimal network performance. The state-of-the-art system infrastructure is designed to support emerging technologies, ensuring long-term sustainability and scalability. It will provide faster cloud access, in addition to a direct connection to key data centres, providing global access to facilitate international business growth in a rapidly evolving digital landscape.
TECHx
08-07-2025
- Business
- TECHx
du and Omantel Activate New Submarine Cable System
Home » Smart Sectors » Telecom » du and Omantel Activate New Submarine Cable System du, the UAE-based telecom and digital services provider, and Omantel, a provider of integrated telecommunication services in Oman, have announced the activation of the Oman Emirates Gateway (OEG). The new 275-kilometer international submarine cable system aims to enhance connectivity between the UAE and Oman. The submarine cable connects three key international data centers. These include datamena DX1 in Dubai, Equinix MC1 in Barka, and Equinix SN1 in Salalah. The companies reported that OEG will offer an express route between the UAE and Oman. According to the statement, the system is expected to support the region's growing role as a digital and telecom hub. In addition, du stated that the submarine cable system would improve operational efficiency, increase speed, and expand connectivity. It will also support advanced commercial offerings and improve customer experiences. Karim Benkirane, Chief Commercial Officer of du, noted that the Oman Emirates Gateway goes beyond standard infrastructure. He said the system will help future-proof the region's digital infrastructure and benefit hyperscalers, content providers, and international carriers. Samy Al Ghassany, Chief Technology and Digital Officer at Omantel, reported that the full activation of the OEG is a key milestone in Oman's digital transformation. He added that the system strengthens content delivery and creates a high-capacity corridor to support business growth. The companies revealed that the OEG system includes dual routes, both terrestrial and subsea. This design provides network resilience and performance reliability. Additionally, the infrastructure is built to support emerging technologies, allowing for long-term scalability and sustainability. It also provides faster cloud access and direct links to international data centers. The system connects datamena DX1 (Dubai), Equinix MC1 (Barka), and Equinix SN1 (Salalah) Dual-route design offers terrestrial and subsea redundancy du and Omantel reported that the submarine cable system strengthens their positions in the wholesale telecom market. The project reflects their shared goal of attracting global players, improving connectivity, and supporting economic growth. The Oman Emirates Gateway is expected to play a strategic role in advancing telecom capabilities in both the UAE and Oman.
Mid East Info
08-07-2025
- Business
- Mid East Info
du and Omantel announce activation of the Oman Emirates Gateway submarine cable - Middle East Business News and Information
Dubai, UAE, July , 2025: du, the leading telecom and digital services provider, and Omantel, the leading provider of integrated telecommunication services in the Sultanate of Oman and a regional leading telecom and technology provider in the Middle East, announced the activation of the Oman Emirates Gateway (OEG), a 275km international fibre optic submarine cable system that will enhance connectivity between the UAE and Sultanate of Oman. The cutting-edge project connects three strategic international data centers: datamena DX1 in Dubai, UAE, Equinix MC1 in Barka and Equinix SN1 in Salalah Oman OEG is set to redefine the digital landscape of the region by providing a seamless express connection and supporting the area's evolution into a global telecommunications hub. This initiative boosts the operational efficiency of existing networks and systems while enhancing speed, expanding connectivity, and elevating customer experiences with advanced commercial offerings. Karim Benkirane, Chief Commercial Officer of du , said: 'The Oman Emirates Gateway is far more than just an optical cable; it is a bridge towards future-proofing the digital infrastructure of the region. This project will be a cornerstone for hyperscalers, content providers, and international carriers, empowering them to enhance their presence in the UAE and Oman, and optimize their operational capability to meet the growing demands of the digital era.' Samy Al Ghassany, Chief Technology and Digital Officer at Omantel, remarked: 'The full activation of the Oman Emirates Gateway marks a pivotal milestone in our journey towards digital transformation in Oman and beyond. We are proud to contribute to the region's content enrichment and to establish a robust, high-capacity corridor that will empower businesses across Oman and the UAE. This achievement goes beyond mere connectivity; it propels the entire region towards innovation, growth, and global competitiveness.' The activated system delivers transformative benefits such as comprehensive resilience through dual routes (terrestrial and subsea) guaranteeing unmatched reliability and optimal network performance. The state-of-the-art system infrastructure is designed to support emerging technologies, ensuring long-term sustainability and scalability. It will provide faster cloud access, in addition to a direct connection to key data centers, providing global access to facilitate international business growth in a rapidly evolving digital landscape. The activation of OEG is an important development for du and Omantel, reinforcing their positions as leading wholesale players in the telecommunications industry. The partnership reflects a shared commitment to driving progressive change and attracting hyperscalers and global players to the region, improving the overall quality of connectivity and customer experience. The benefits of the OEG project extend beyond enhanced network capabilities, by serving as a crucial driver for economic growth and technological innovation in both the UAE and Oman. About du: du adds life to life with a comprehensive portfolio of mobile, fixed, broadband, entertainment services, and fintech solutions. Through a digital-first approach powered by ultra-reliable fiber and 5G technology, du delivers bespoke solutions leveraging cloud computing, AI-driven analytics, advanced cybersecurity, and IoT integration. As a trusted digital telco enabler spearheading the UAE's digital transformation, we collaborate with a dynamic partner ecosystem to propel industries and society toward operational excellence, shaping a more connected and digitally advanced future across the region. About Omantel: Omantel Wholesale is the international and domestic wholesale division of Oman Telecommunications Company S.A.O.G. (Omantel), the leading and first integrated telecommunications service provider in Oman. Founded in 1970, Omantel is a joint-stock company listed on the Muscat Securities Market, with 51% ownership by the Oman Investment Authority (OIA), the sovereign investment arm of the Omani government. Omantel has investments in over 20 submarine cable systems globally, with five unique submarine cable landing stations in Oman, and multiple terrestrial links providing outbound connectivity to neighbouring countries. It is also the first and only GCC carrier to land a submarine cable in Europe. Omantel Wholesale leverages ultra-low latency networks to drive innovation and digital transformation globally. By capitalizing on Oman's geographic position at the crossroads of East, West, North, and South, it enables customers and partners to deliver superior services with the best possible end-user experience.
Observer
07-07-2025
- Business
- Observer
New subsea cable enhances regional digital connectivity
MUSCAT: Omantel, Oman's leading provider of integrated telecommunications services, and du, the prominent UAE-based telecom and digital services provider, have officially announced the activation of the Oman Emirates Gateway (OEG) — a state-of-the-art 275-kilometre international fibre optic submarine cable system connecting the Sultanate of Oman and the United Arab Emirates. The OEG system links three major international data centres: Equinix MC1 in Barka, datamena DX1 in Dubai and Equinix SN1 in Salalah. This high-capacity express route is set to transform the region's digital landscape by delivering ultra-low latency connectivity, significantly improving operational efficiency and enhancing digital services between the two Gulf countries. Sami al Ghassany, Chief Technology and Digital Officer at Omantel, said: 'The full activation of the Oman Emirates Gateway marks a pivotal milestone in our journey towards digital transformation in Oman and beyond. We are proud to contribute to the region's content enrichment and to establish a robust, high-capacity corridor that will empower businesses across Oman and the UAE. This achievement goes beyond mere connectivity; it propels the entire region towards innovation, growth and global competitiveness'. Karim Benkirane, Chief Commercial Officer of du, added: 'The Oman Emirates Gateway is far more than just an optical cable; it is a bridge towards future-proofing the digital infrastructure of the region. This project will be a cornerstone for hyperscalers, content providers and international carriers, empowering them to enhance their presence and operational capability to meet the growing demands of the digital era'. The newly activated system offers dual-route resilience through both terrestrial and subsea links, ensuring high reliability and superior network performance. Its infrastructure is built to support the growing demand for cloud services, hyperscale computing and data-intensive applications, with direct connections to key regional data centres that facilitate international business and digital expansion. The launch of the OEG project further reinforces Omantel and du's roles as leading wholesale telecommunications providers in the Middle East.
