National Oilwell Varco to buy Denmark's NKT Flexibles for $673.4 million

US oilfield equipment group National Oilwell Varco (NOV) is buying oil pipeline supplier NKT Flexibles from Danish industrial group NKT Holding and Norway's Subsea 7, for 3.8 billion Danish crowns ($673.4 million).

NKT Holding owns 51 per cent of NKT Flexibles, while Subsea 7 owns the remaining 49 per cent.

Kalundborg, Denmark-based NKT Flexibles is a supplier of flexible pipelines for the offshore and chemical industries. It manufactures dynamic and static risers, static flowlines, subsea jumpers, topside jumpers and expansion joints.

Flexible pipes are used for offshore oil and gas applications including production, gas lift, gas injection, water injection and various ancillary lines including potable water and liquid chemical lines.

Its flexible pipe systems are used by nearly all the oil and gas companies to extract oil from offshore as well as coastal shallow waters to ultra-deep waters all around the world.

Last year NKT Flexibles was awarded a $1.8 billion to supply flexible pipes to Brazilian oil giant Petrobras. It is now building a dedicated flexibles fabrication plant in Brazil, which will be ready for commercial operation in 2013.