Denholm takes on local partner in Azerbaijan

DOS, which is being spun off from Glasgow-based shipping, logistics and seafood company J & J Denholm, said the move would help the operations to build on "Denholm’s reputation as a first class fabricator in Azerbaijan”.

Chairman John Denholm added: "Nobel has interests in various upstream activities and we see significant cross selling opportunities as a result of this deal.”

The value of the transaction, which sees DOS joining forces with an Azerbaijani partner, was undisclosed.

DOS chief executive Michael Beveridge said: "Nobel share our core values in terms of ethical and operational practices and we are excited by the opportunities that this deal opens up with the combination of Denholm’s fabrication expertise and Nobel’s wider service offering and existing relationships in Azerbaijan.”

Nobel chief executive Michael Wring added: "Our purchase of half of Denholm’s business in Azerbaijan aims to create superior capability and value…through joint ventures with renowned first-class service providers in oil and gas and adjacent sectors.

"As a result we will build and develop Azerbaijani companies with international quality, serving major international and local clients in the region.”

DOS employs nearly 4,000 staff and companies within the division have a combined annual turnover in excess of £130million.

J & J Denholm said last month it was to spin off its oilfield services division, which includes Inverurie-based Denholm MacNamee and Aberdeen businesses Denholm Valvecare and Petrasco, to focus on its other "traditional” activities.