Leading provider of global mobile satellite communications services, Inmarsat plc has entered into a strategic partnership with RigNet, Inc., a leading global provider of managed remote communications solutions to the oil and gas industry.
The wide-ranging strategic transaction involves the appointment of RigNet to distribute Inmarsat’s Global Xpress and L-band services to the energy sector and the sale of Inmarsat’s retail energy business to RigNet.
Based in Houston, Texas, RigNet provides managed remote communication services in over thirty countries on six continents, covering 1,100+ oil and gas related sites ranging from drilling rigs to production facilities and energy vessels.
Under the terms of the agreement, RigNet will become a key Global Xpress distribution partner for the global energy sector and offer Global Xpress and L-band services to RigNet’s growing customer base. RigNet has also entered into a significant 4-year Global Xpress capacity pre-purchase.
Inmarsat has additionally agreed to sell to RigNet its retail energy operations, currently managed within the Inmarsat Solutions Enterprise business unit for a total consideration of US$25 million. The sale will include Inmarsat’s microwave and WiMAX networks in the US Gulf of Mexico serving drillers, producers and energy vessel owners, its VSAT interests in Russia, the UK, the US and Canada, its telecommunications systems integration business operating worldwide, and its retail L-band energy satcoms business.
Rupert Pearce, Inmarsat’s Chief Executive Officer states that the partnership enhances the strategic positioning of both companies as they seek to address the communications needs of the global energy sector together. RigNet is the perfect partner for Inmarsat, supporting a large customer base of oil and gas VSAT customers, who are expected to be at the forefront of the transition to Global Xpress services.
According to Mark Slaughter, RigNet’s chief executive officer and president, with the purchase of Inmarsat’s energy broadband business and the addition of Global Xpress to their transport options, RigNet will broaden and deepen their capabilities to serve the oil and gas industry across the life of the field from drilling through production.
Slaughter adds that their extensive product and services portfolio tailored for the oil and gas industry, coupled with the unprecedented connectivity capabilities of Inmarsat’s Global Xpress network, sets the stage for a step change in managed remote communications services to the oil and gas industry.