Bayou and Wasco Announce Planned Dissolution of Joint Venture

News provided by

Nov 09, 2020, 09:00 ET

HOUSTON, Nov. 9, 2020 /PRNewswire/ -- The Bayou Companies, LLC ("Bayou") and Wasco Energy ("Wasco") today announced the planned dissolution of their joint venture, Bayou-Wasco Insulation, LLC ("BWI"). BWI will complete contracted projects and begin an orderly wind down in late 2021.

"We plan to utilize our experienced workforce to ensure BWI projects are completed with the same focus on safety, quality and performance that our customers have come to expect," said Tanmay Desai, CEO of Bayou. "We do not expect this planned dissolution to impact most employees as they will shift to supporting other opportunities across the Bayou campus."

"The current economic environment has been challenging for everyone. Project delays and cancellations have limited the demand for the products and services of BWI and this decision has been extremely difficult for all of us," said Dr. Martyn Wilmott, EVP Pipeline Services Division, Wasco Energy Group. "I would like to take the opportunity to thank everyone who has contributed to BWI throughout its short history."

Mr. Desai continued, "With BWI on track to successfully execute on over one million feet of subsea insulated pipeline, the team certainly has a lot to be proud of."

The BWI facility houses the latest Glass Syntactic Polypropylene (GSPP) equipment in the world and has successfully executed many Gulf of Mexico offshore projects for major international oil companies and regional independents. A sale process for the equipment assets will commence in 2021 for interested parties.

About The Bayou Companies

Founded in 1942, Bayou is widely recognized as a market leader in onshore pipe coatings and offshore coatings and insulation, including highly-specialized insulation for the oil & gas industry. Throughout its long history, Bayou has been a reliable partner for its customers across its mission-critical suite of services and has continued to invest in capabilities that match the increasingly complex demands of the pipeline community. Bayou's industry-leading suite of pipeline insulation products includes the development and application of HT-200, the only deep-water insulation coating rated to 400 degrees Fahrenheit and in service. Bayou has invested significantly in building out world-class facilities in its strategically located New Iberia location. Bayou's prime location and expansive manufacturing and storage footprint provides efficient logistics and seamless operations for its customers.

About Wasco Energy

Wasco Energy is a leading integrated energy group that operates in the global market. We provide reliable and competitive products, services and solutions to oil, gas and energy players worldwide. Wasco Energy has built an enviable track-record of delivering major projects across key markets and today we continue to extend our footprint via distinct product and service offerings in the areas of Pipeline Services, Engineering Services and Field Services.

Contact

Please direct all questions to:

Amber Murphy
[email protected]
337.352.9240

SOURCE The Bayou Companies