Galileo Technologies has secured a cornerstone investment from Helmerich & Payne (H&P) for an amount of $33 million.
H&P invested the money in Galileo in the form of a convertible note, which bears an interest of 5% per annum and is due April 2027. If exercised, the note would convert into common shares of Galileo at an enterprise value of $1.35 billion.
Galileo, a company that deploys an unique technology to capture natural gas from any source and convert it into Liquefied Natural Gas (LNG) on-site, also noted that the companies plan to identify and pursue business development opportunities which, if successful, have the potential to reduce fuel costs and carbon emissions from power consumption on well-sites.
Galileo’s technical expertise combined with H&P’s wide network of drilling sites provides significant opportunity for widespread application of the liquefaction technology in North America, the firm noted.
Osvaldo del Campo, Galileo’s CEO said: “We are excited to align with H&P in this transaction. This investment and the collaboration with H&P will contribute to continue expanding the global presence of our innovative natural gas liquefaction, compression and re-gasification products and solutions, particularly in the United States where we see attractive growth opportunities.”
Meanwhile, John Lindsay, H&P’s president and CEO commented: “We are pleased to be a cornerstone investor in Galileo, a world leader in innovative natural gas technologies.”
“As the global demand for energy increases, we believe the services and technologies provided by Galileo will gain importance as the world continues to seek lower emissions as well as reliable, low-cost sources of energy.”
H&P is considered to be North America’s largest land drilling solutions provider.
Well drilling and completion is an energy intensive process and use of their technology can enable the monetisation of natural gas from any source (well head, flared, pipeline, stranded) by converting it into low carbon intensive LNG, Galileo said in a statement. The converted LNG can be reused on site or transported and stored with ease creating a virtual pipeline. The use of natural gas as a fuel source is economically and environmentally beneficial as it is significantly cheaper than other fuels such as diesel and has a lower carbon footprint, it added.
