Fotech raises £6.5 M for oil field technology

Investment

The energy technology company Fotech, a UK-based developer of monitoring and surveillance solutions for oil and gas wells and pipelines, has raised £6.5 million in funding from investors including Scottish Equity Partners (SEP), Energy Ventures and the Shoaibi Group of Saudi Arabia.

The company has developed optical fibre–based acoustic monitoring systems for detecting pipeline leaks and other faults. The money will be used for further development and field tests, and for the commercial launch of its products.

The funds will also be used to finance the acquisition of a spin-out from Surrey University that has developed fibre-optic sensing technologies.

Douglas Gibson, Chief Executive of Fotech, said, “We are delighted to have secured funding from SEP, Energy Ventures and the Shoaibi Group. The oil and gas industry has seen great benefits from the use of fibre optic sensing technologies in the well bore. Fotech is creating new and innovative solutions which will deliver even better understanding of the entire upstream, midstream and downstream processes.”

Anoop Poddar, an Investment Manager at Energy Ventures in Aberdeen said, “Fotech's proprietary fibre optics sensing technology will create substantial value for its customers. We are excited about backing such a pioneering technology and a management team that has a proven track record of building sucessful businesses. We look forward to supporting the Fotech management through our industry knowledge, network and expertise.”

Fotech was founded in 2006 by Douglas Gibson and Alan Piesse to commercialise Distributed Acoustic Sensing, which allows a standard optical fibre cable to act as a microphone over significant distances, using acoustic data and sophisticated software to identify leaks and other problems in pipelines and wells.

Gibson and Piesse have many decades of experience in the oil and gas sector. Gibson worked with Halliburton and then built and sold his own oilfield service company, which was a partner of Sensa in South America. He also headed Vibtech, an oilfield services company which was sold to CGG Sercel.

Piesse has 30 years experience in oilfield sales and previously worked with Sensa, a fibre optic sensing specialist which was acquired by Schlumberger. Fotech will establish a new base in Hampshire, UK and recruit technical and sales staff in the next 12 months.