EnerMech are looking to recruit up to four apprentice engineers into their UK business who will have opportunities to work internationally as they progress up the career ladder.
The Aberdeen-headquartered mechanical and electrical services specialist has a strong track record of training young people who have gone on to make a significant impact on the business and in future years take up senior positions.
To date, at least 20 former apprentices have graduated from EnerMech’s UK apprentice scheme, with some working offshore in the North Sea, others in key posts in Angola, the Democratic Republic of Congo and Egypt, while a number have developed careers in project management.
The prospective apprentices will have spent at least one year in a college based environment and demonstrated a commitment to a career in engineering by obtaining a Performing Engineering Operations qualification or a relevant National Certificate.
The successful applicants will be sponsored by EnerMech to complete their Modern Apprentice training up to NVQ Level 3 at college, combined with on-the-job training over the next three years.
EnerMech’s Director of Human Resources, Shirley Smith, said various routes were open to EnerMech apprentices, who could opt to work in traditional offshore roles as technicians or as onshore project engineers, which could lead to taking a Graduate Apprentice course at The Robert Gordon University.
Shirley Smith said: “Our apprentices are limited only by their ambition and we actively encourage every one of them to reach their full potential. We believe apprentices are the lifeblood of an organisation like EnerMech, and by the end of their apprenticeships they will all have gained a comprehensive understanding of our business objectives and can go on to play an important role in the growth of the company.”
One of EnerMech’s first apprentices started off working in the “Flying Squad” as part of an agile team deployed on major offshore projects, later took on an onshore project engineer role and is now one of the company’s lead contract support engineers. Another former apprentice is currently working as a supervisor in Ghana, while EnerMech’s first female apprentice is no longer workshop based and has been promoted to a project co-ordinator position.
Shirley added: “Supporting an apprenticeship is a significant financial investment but we believe it is important to encourage young people to have careers in the energy sector. We are looking for candidates who are committed and will stay the course and grow their careers as the business continues to grow globally. In return we will provide the highest levels of training and support their personal and career development so they can get the best out of a rewarding career.”
EnerMech employs 3,500 staff across 40 locations in the UK, Norway, the Middle East, Caspian, Asia, Africa, Australia and Americas, working on large scale projects across the oil and gas, LNG, renewables, defence, power, infrastructure and petrochemicals sectors.
Applications for the UK EnerMech Apprenticeship Programme close on 30 June and more details can be found on the EnerMech website by visiting https://enermech.com/join-us/
The inspection of oil and gas assets could be revolutionised following the signing of a three year agreement with global engineering consultancy Arup and EnerMech’s specialist inspection division MInteg.
AIM, a digitised inspection system, utilises graphic techniques similar to those used in video gaming and could typically cut asset inspection costs by up to 30%. AIM could also massively reduce reliance on rope access, which is traditionally used for the inspection of hard-to-access areas of offshore oil and gas platforms.
Arup, a 15,000-strong international design and engineering consultancy, has worked on major global infrastructure and building projects including the Sydney Opera House, the Queensferry Crossing and the Victoria & Albert Museum in Dundee.
With Arup’s proven digital expertise and EnerMech’s broad energy industry experience, both companies believe AIM can redefine and revolutionise the inspection process of assets and replace the current outdated and paper-based method of inspection which is prevalent in the sector.
AIM uses visualisation, data automation, artificial intelligence, computational photography and 360° walk-through views to construct virtual models of assets and to pinpoint and prioritise areas where maintenance may be required.
The virtual model, which can be accessed remotely by clients 24-7, utilises a Unity platform, a widely used efficient means of generating in depth computer generated models. The reality is that AIM can save time, reduce costs and minimise risk. Operators and asset owners will have instant access to interactive inspection data, allowing them to make informed decisions about asset repairs, replacements or improvements
Dr Bryan Horton, Offshore Digital Leader, Arup, said: “The partnership between Arup and EnerMech brings enhanced global expertise to digitalise an old way of working, delivering high value and lower risk outcomes for operators. EnerMech is a leader in the energy industry and we are delighted to be working with them. Clients have already benefitted significantly from both organisations working together and we look forward to strengthening this alliance.”
AIM can be used to inspect almost any asset including offshore fixed and floating platforms, marine jetties and terminals, onshore plant facilities, construction and fabrication projects and brownfield modifications.
MInteg Operations Director, Patrick Gallagher, added: “AIM is a potential game-changer which offers enhanced inspection capabilities on oil and gas assets and can assist operators with prioritising the annual integrity management cycle.
“The potential time savings and subsequent cost reductions are considerable, plus AIM can hugely reduce the amount of time we will require personnel to be working at height using rope access to inspect difficult-to-reach areas of offshore and onshore assets.”
The two organisations will collaborate together throughout the inspection process, further supporting operators to enhance assets based on the inspection findings through engineering expertise across the North Sea, Western Australia and Gulf of Mexico.
World Day for Safety and Health at Work will be marked on Sunday 28 April. Recently appointed Group HSE Director at EnerMech, Emmanuelle Marshall, talks about how the safe working practices which protect us and colleagues from harm need to be front of mind every single working day.
“World Safety Day impacts all EnerMech staff, wherever in the world they happen to be working, but it is worth reminding ourselves that health and safety is not just for one day.
“HSE has been at the forefront of all of EnerMech’s operations since we were established in 2008, and as we continue to grow and expand, HSE continues to be a critical part of our journey and one on which we must be constantly improving.
“In the next five years EnerMech will undergo a major transformation and HSE will play a critical role in successfully implementing the changes which are required to take our business through the next phase of development. Our leadership on all matters health and safety related is recognised by our customers and our industry peers, but on World Safety Day it is worth taking stock and acknowledging that we can always do better and that we are obliged to constantly improve on existing HSE standards.
“One of my objectives in my role as HSE Director will be to leverage innovative approaches, using connected worker technology and mobile apps for example, to enhance the contribution my department makes to delivering business value across the group. We are already looking at new ways of transforming the HSE function so that it become less of a reporting function and more of a support function across our various business streams and this will be an ongoing process.
“The HSE vision of EnerMech is to not only protect the health and safety of our employees but to also protect the communities and the environment in which we work. We can all contribute to that vision on World Day for Safety and Health at Work by reflecting on our daily contribution and how we as individuals can ensure that EnerMech is one of the safest places in the world in which to work.”
There is little doubt John Morrison can be described as a veteran of the offshore cranes and lifting industry given that earlier this month he celebrated his 40th anniversary since first entering the engineering sector.
Another milestone comes in Stavanger on 24 April when John will attend the 24th International Offshore Crane and Lifting Conference, having served on the organising committee for 17 of those 24 years.
John completed a general engineering apprenticeship in Aberdeen in 1976 at a time when the city was on the verge of being transformed by the discovery of oil in the North Sea. Like many apprentices he recognised the many career opportunities that lay within this “new” industry and worked in a number of positions with offshore crane companies over the next 12 years, gaining an engineering degree along the way, before forming his own business in 1988 with co-director Bert Middleton.
Based in Aberdeen, Specialist Maintenance Services (SMS) and its Great Yarmouth based sister company A1 Safety Training Consultants, became strongly established in the oil and gas sector and employed more than 160 staff globally.
The businesses caught the eye of industry newcomer EnerMech and in 2008 SMS and A1 became EnerMech’s first acquisitions. Fast forward to 2019 and EnerMech’s Mechanical Handling Services division (cranes & lifting, hydraulics and training) employs more than 900 staff across the North Sea and in Norway, the Middle East, Caspian USA, Asia, Australasia and Africa.
EnerMech’s International Director for Mechanical Handling Services may have 40 years under his belt but he has lost none of his enthusiasm for a sector which he views as one of the most exciting industries to be involved in.
He said: “There have been many changes of the last four decades, including a much stronger emphasis on having the correct procedures and processes in place, and at EnerMech we regard safety to be paramount in everything we do.”
Not surprisingly technology has transformed the lifting industry, having a hugely positive impact on the design of cranes and on their safety and capabilities which are now deployed onshore and offshore. John, a classic car fan, uses a motoring analogy: “When I started in the business, the cranes in use could be compared to a Ford Cortina, whereas now happily we have access to the equivalent of Jaguars, BMWs or Audis.”
Emerging technologies and specifically Artificial Intelligence (AI) and the use of big data will continue to shape the cranes and lifting sector and John will chair a session on Standards and Research at the upcoming IOCL conference, while EnerMech colleague and MInteg director Patrick Gallagher is a conference speaker on “Inspection – The Future”.
Following the global energy sector downturn, one challenge facing the industry lies in recruitment and encouraging new entrants to follow John’s example in enjoying a fulfilling career.
He added: “EnerMech has an excellent apprentice and graduate programme and we are proactive in attracting the next generation of designers, technicians and engineers but the downturn led to large numbers of people leaving the industry. It is forecast that we are facing yet another skills shortage and it may be more difficult to get young people to consider a career in cranes and lifting, but the job has everything – engineering, electrical, hydraulics and mechanical – and to my mind is a very exciting place to earn your living.”
EnerMech has appointed Emmanuelle Marshall as Group HSE Director. She will be responsible for global health, safety and environment at the Aberdeen-headquartered mechanical and electrical services specialist.
Previously she was BP lead for the multi-national’s global HSE Learning and Development capability and over an 18 year period at Schlumberger she fulfilled a number of senior roles in HSE, technology and learning in the USA, Europe and Africa.
EnerMech chief executive officer, Doug Duguid, said the appointment underlines the company’s commitment to delivery of the most stringent HSE standards across its 40 global locations.
Mr Duguid said: “Emmanuelle will work closely with our HSE teams across our regions to maintain our focus on the health and safety of our workforce, improve on our safety practices and to ensure consistency across the group. This appointment demonstrates our long term commitment to our HSE delivery as we continue to invest and to grow our business across all of our markets globally.”
Emmanuelle Marshall added: “I was impressed by the EnerMech mindset that no business objective comes ahead of HSE and that health and safety is treated as absolutely critical to the future success of the business.
“This is a fantastic opportunity and I have joined EnerMech at a very exciting time as it embarks on the next phase of growth, following a successful first 10 years in which it has enjoyed huge success across the major international oil and gas hubs and made significant inroads in to other allied industries.”
With an estimated $200 billion-plus in LNG capex projects underway in the United States, EnerMech believes it can increase its market share Stateside by capitalising on its wide-ranging experience of big ticket Australian LNG projects.
Operational expertise and extensive customer relationships developed through the build-out of large scale Australian LNG infrastructure projects has provided a US market-entry advantage for EnerMech, which employs 3500 staff globally.
Through 2018 and into 2019 EnerMech, the integrated mechanical and electrical services specialist, had personnel onsite at four US LNG facilities, (Freeport LNG, Cameron LNG, Elba Island and Corpus Christi).
While recognising the customer base is different, Mark Duncan, EnerMech’s Senior Vice President Americas, believes investment in equipment, strategic bases and high quality people, will help extend initial pre-commissioning work in to operations and maintenance contracts.
He said: “Market activity in LNG, mid-stream, downstream and petrochemical plants in the US is increasing and we are pursuing a large amount of project work for 2019 through to 2022. Our integrated services capability is a major advantage over competitors and we are seeing interest from our customers in both the construction and operations and maintenance areas.”
The rollcall of Australian projects undertaken by EnerMech encompasses every major LNG development, from Woodside, Chevron’s Gorgon and Wheatstone, Inpex Ichthys to Curtis Island’s QCLNG, GLNG and APLNG, and covers construction, pre-commissioning and commissioning, shutdown and maintenance phases.
EnerMech Australia General Manager, Michael Smith, is confident the foundations are in place for building on existing LNG relationships and rolling out EnerMech’s wider services portfolio to clients.
He said: “This has been a major focus and we continue to drive and share innovation whilst promoting collaboration across the business lines. Our “One EnerMech” approach to clients means we have incorporated a number of additional services from complete mechanical, electrical and instrumentation services, valve supply, maintenance, repair and overhaul, and more recently specialist maintenance, inspection and integrity capabilities, to our extensive and established offering.
“We are challenging the traditional contracting models, specifically around reducing the contractors footprint, and this approach has increased our market share with a number of major operators and we expect this to increase further as existing maintenance contracts are renewed.”
Australia’s current onshore LNG construction activities are transitioning into the operations and maintenance phase, however, there are a number of waves of investment required over the next 30 to 40 years to continue to feed these initial investments.
Michael added: “Over the next 10 years there is expected be in excess of $70 billion AUD invested in upstream greenfield developments, brownfield modifications and additional LNG trains in Australia and Papua New Guinea.
“EnerMech is already engaging with the full life cycle chain on all major projects, and we are well positioned to increase our market share in these new LNG projects due to our reputation in the industry, established track record, multiple services, geographical location and long term agreements in place with the operators.”
EnerMech will develop an onshore capability in to the South West of England which will create up to 100 jobs in the Bristol area over the next three years.
The Aberdeen-based mechanical and electrical services specialist will target the nuclear, industrial processing, refining, petrochemical, aviation, defence, transport and infrastructure sectors as it diversifies outwith its energy industry roots.
The company believes its track record in the highly regulated offshore industry and experience of working on global infrastructure projects will enable it to successfully introduce existing service lines in to new onshore sectors.
EnerMech has appointed Duncan Frame, who spent 20 years with GE in senior commercial and operational roles in a number of different sectors, as General Manager South West, and he will spearhead expansion of the EnerMech brand.
Duncan Frame said: “EnerMech has years of experience of working in the highly regulated offshore sector and there exists a number of logical entry points to many of the onshore high tech and broader industrial sectors which populate the Midlands and south of the UK.
“The disciplines and methodologies which have been fine tuned in the North Sea and global oil and gas hubs are transferrable to an onshore environment and I see this as a terrific opportunity to build on the EnerMech success story which is strongly founded on evolution and diversification.”
EnerMech business lines including hydraulics, cranes and lifting, integrity and inspection and process and pipelines will appeal to a large number of businesses located in the southern half of the UK. There is also potential to provide integrated services, including electrical and instrumentation and testing and certification, to a number of nuclear, naval and marine projects.
“We envisage building a significant team of competent, multi-skilled individuals with experience across multiple sectors in the next three to five years and will establish the necessary workshop, storage and testing infrastructure to be on the doorstep of and accessible to potential new clients,“ added Mr Frame.
Established ten years ago, EnerMech employs 3,500 staff across 40 locations in the UK, Norway, the Middle East, Caspian, Asia, Africa, Australia and Americas. The company works on large scale projects across the oil and gas, LNG, renewables, defence, power, infrastructure and petrochemicals sectors and expects to grow revenues in 2018 to £430 million, up from £361 million in 2017.
EnerMech chief executive officer, Doug Duguid, said: “We have always been an outward looking business and this extension in to new markets is a natural step and part of a global strategy which will see EnerMech double in size over the next five years.
“We have successfully diversified from our traditional oil and gas base in to major infrastructure projects and this is another good example of introducing our skills and industry expertise in to new sectors which demand similar levels of regulation and duty of care.”
EnerMech has confirmed the conclusion of its sale to The Carlyle Group and announced the formation of the group’s Board of Directors.
John Kennedy has been appointed as the group’s chairman, with Joost Dröge and Bob Maguire, both managing directors and partners at Carlyle International Energy Partners (CIEP), and Philippe Boisseau joining the Board as non-executive directors.
The appointments signal EnerMech’s strong intent to substantially expand the business across global energy, engineering and infrastructure markets.
Spanning a 40-year career in oilfield services, John Kennedy has held senior executive positions with Brown & Root, Halliburton and rig manufacturer Lamprell. In 2006 he led the buy-out of Vetco International from ABB and he was chairman of Wellstream Holdings when it successfully completed an IPO in 2007 and three years later when the business was acquired by GE in a £800 million deal.
Doug Duguid, chief executive officer of the Aberdeen-headquartered mechanical and electrical services specialist, said: “I am delighted we are able to mark the official completion of The Carlyle Group’s acquisition of EnerMech with important non executive appointments of the highest calibre.
“John Kennedy’s experience in the upstream sector and successful corporate track record will add a breadth of expertise and knowledge which will shape the next chapter of EnerMech’s growth strategy.
“With the operating experience, financial resources and international support network of The Carlyle Group and CIEP, EnerMech is in an excellent position to consolidate our presence in our existing markets whilst pushing forward in exploiting new geographic and sector opportunities.
“There is a renewed confidence in our core energy sector client base and we are committed to working collaboratively with clients to identify and provide the best solutions possible. In tandem, our success in establishing a footprint and strong reputation in allied or new international markets, has given us a solid foundation for significant growth over the next decade.”
EnerMech announced in October that it had signed definitive agreements to be acquired by NASDAQ listed alternative asset manager The Carlyle Group for an undisclosed sum. Customary anti-trust and regulatory approvals have now been received and the transaction formally concluded.
Equity for this investment will come from CIEP, a $2.5 billion fund that invests in the global oil and gas sector outside North America. The Fund’s mandate includes exploration & production, mid-stream, downstream and oil field services. Credit Suisse, Lloyds and DNB have underwritten the all-senior rated loan financing the acquisition.
EnerMech Group Ltd has been acquired from Lime Rock Partners by global alternative asset manager and NASDAQ listed The Carlyle Group for an undisclosed sum.
The transaction is expected to close in Q4 2018, subject to customary anti-trust and regulatory approvals. Capital for the investment will come from Carlyle International Energy Partners (CIEP), a $2.5 billion fund that invests in the global oil and gas sector outside North America. The Fund’s mandate includes exploration and production, mid- and downstream and oilfield services.
EnerMech, the Aberdeen-headquartered mechanical and electrical services specialist, employs 3,500 staff across 40 locations in the UK, Norway, the Middle East, Caspian, Asia, Africa, Australia and Americas. The company works on large scale projects across the oil and gas, LNG, renewables, defence, power, infrastructure and petrochemicals sectors.
Last month (September) EnerMech revealed annual accounts [for the full year] to December 2017 with revenues of £361 million and profits (EBITDA) of £43.6 million, and forecast that 2018 revenues are expected to reach £430 million with profits in the region of £59 million.
The company was formed 10 years ago by Chief Executive Officer Doug Duguid and Chief Financial Officer Michael Buchan, both of whom will remain with the company in their current positions.
Doug Duguid said the deal was positive news for staff and clients and said newly available capital would lead to further acquisitions which will strengthen EnerMech’s services portfolio and geographic presence.
He said: “This transaction marks the beginning of a new chapter for EnerMech as we continue to develop our business, grow our global footprint and enter new markets. We are excited to be partnering with CIEP, whose expertise and track record in the energy space will provide valuable support for our strategy and next phase of growth.
“We are very pleased with the strong support we have enjoyed from Lime Rock over the last decade in building a thriving and sustainable business. This transaction is a natural progression in the life of any ambitious company and with the backing of Carlyle Group, which enjoys extensive relationships in the upstream and downstream sectors, we will be focussed on doubling the size of the business in the next five years.
“Our strategic diversification in to large scale infrastructure projects and new geographic markets, allied to our lengthy track record in energy and the renewed confidence in that sector, were significant drivers in attracting a heavyweight investor such as Carlyle Group.
“For our staff and clients, it is very much business as usual, with the caveat that we will be identifying target businesses which will strengthen our integrated offering and introduce increased efficiencies for our end-users.”
This acquisition is CIEP’s first investment in an energy services business, complementing its current portfolio of investments in exploration, midstream and downstream and storage sector companies.
Marcel van Poecke, Head of Carlyle International Energy Partners, said: ““EnerMech is an attractive, well-positioned international integrated energy, infrastructure and industrial services company, led by a strong team.
“The company has multiple avenues for growth. We believe potential synergies across CIEP’s portfolio companies as well as the broader Carlyle family are attractive. We look forward to working with the team and supporting EnerMech’s continued growth.”
John Reynolds, Co-Founder and Managing Director of Lime Rock Partners, said: “We have greatly valued our partnership with Doug Duguid, Michael Buchan, and the entire EnerMech team as we supported the business’s growth and transformation since inception. We are confident that the company will continue to thrive under Carlyle’s ownership.”
EnerMech has been ranked in the top 60 of British private mid-market growth companies, according to the Sunday Times Grant Thornton Top Track 250 league table.
The Aberdeen-headquartered integrated mechanical and electrical services specialist was one of 11 new Scottish entrants to the rankings, which measures companies growth by sales and growth and profitability criteria.
The twenty Scottish companies featured in the list showed combined sales of £4.48 billion, with EnerMech the second highest ranked Scottish firm (£361 million revenue to December 2017) after Edinburgh-based house builder Miller Homes (£675 million).
EnerMech’s ranking in 52nd place in the British table comes after the company last week posted global profits of £43.6 million, up by £19.3 million on 2016, and increased revenue of almost £100 million in the same period.
EnerMech chief executive officer, Doug Duguid, predicted that 2018 revenues would continue to grow to around £430 million with EBITDA in the region of £59 million, from a combination of the continued revival in the company’s traditional oil and gas markets and diversification in to new sectors.
He said: “We are delighted to be in the mix with Britain’s top performing growth companies and the Top Track 250 ranking echoes our strong financial performance in 2017 which we expect to continue in succeeding years.
“Our home North Sea market is on a sounder footing and we are witnessing increased activity and demand for our services. We envisage building on our successes in Australia and the US, not just in the energy sector but over a range of large-scale infrastructure projects which are in the pipeline and where we can offer our suite of integrated services.”
EnerMech employs 3500 staff across 40 locations in the UK, Norway, the Middle East, Caspian, Asia, Africa, Australia and Americas, and has evolved in to one of the world’s leading integrated mechanical and electrical contractors serving the oil and gas, LNG, renewables, defence, power, infrastructure and petrochemicals sectors.
The Top Track 250 is sponsored by Grant Thornton and Lloyds Banking Group and compiled by Fast Track, the Oxford-based research and networking events firm.
Andrew Howie, Partner at Grant Thornton UK LLP, praised the companies
for their performance: He said: “Advances in robotics and artificial intelligence, the pervasive challenge of cybercrime, and the uncertain impacts of Brexit are among the significant issues facing Britain today.
“If we are to continue turning innovative ideas into businesses with international scale, we all need to play our part in shaping a vibrant economy that thrives. In this, the role of the mid-market is crucial. Resilient despite the headwinds, the Top Track 250 are innovating, winning business and adapting to generate value. There is much to learn from them.”
The Sunday Times Grant Thornton Top Track 250 complements the Top Track 100, published in July, which features Britain’s private companies with the biggest sales. It ranks the next 250-biggest companies by sales, provided they meet certain growth and profitability criteria. The 250 companies grew combined sales by 18% to £66.7bn, operating profits by 27% to a record £6.4bn and employees by 10% to 435,000.
Continued success in international markets has increased global revenues by nearly £100 million for integrated mechanical and electrical services specialist EnerMech.
The Aberdeen-headquartered firm has posted 2017 group turnover of £361.4 million, up from £263.9 million the previous year, while profits (EBITDA) increased by £19.3 million to £43.6 million.
EnerMech employs 3500 staff across 40 locations in the UK, Norway, the Middle East, Caspian, Asia, Africa, Australia and Americas, and has evolved in to one of the world’s leading integrated mechanical and electrical contractors serving the oil and gas, LNG, renewables, defence, power, infrastructure and petrochemicals sectors. The company stated that around £45 million of its revenue growth had come from the acquisition of electrical & instrumentation (E&I) specialist EPS Group Australia in early 2017.
Annual accounts lodged this week at Companies House for the year to December 2017 show EnerMech’s UK business continued to weather the oil and gas downturn, despite a drop in turnover to £116 million from £128 million in 2016. In the UK, where the company employs 1000 staff, EnerMech posted EBITDA of £9.9 million compared to £15 million the previous year.
EnerMech chief executive officer, Doug Duguid, forecast that global revenues in 2018 would increase to £430 million with EBITDA in the region of £59 million, and said the UK business would also experience growth on the back of increased investment in the region.
Mr Duguid said: “Our global strategy of diversification, both in terms of the services we provide and the markets we are competing in, is proving successful and this is strongly demonstrated by our financial results, however, we are also starting to see a return to growth in our traditional oil and gas market.
“In five of our seven operating regions, we experienced significant growth, particularly in Australia where revenue almost doubled, and in the US where the growth of our industrial services and E&I offerings plus exposure to large LNG projects more than doubled turnover. In Africa too, strategic contract wins in Angola, Nigeria and Ghana saw activity levels increase by 50% in 2017, while in Asia we improved on our 2016 performance by securing important contracts in Korea and Malaysia.
“The Middle East and Caspian region remained steady in 2017, while Europe was the only region in which revenues declined, due to the well-documented drop off in new oil and gas projects and the deferral of non-essential maintenance activities.
Mr Duguid was upbeat on 2018 prospects, pointing to EnerMech’s ability to deliver integrated services which clients are increasingly demanding and the company’s focus on greater collaboration with customers.
He said: “The prospects for our 2018 financial results are very positive and we expect further growth in the Americas and Australia in particular. Our commitment to developing innovative operational and commercial ways of working is gaining traction and is particularly relevant to mature oil and gas markets, where extending field life is a key customer objective.
“Over the last 10 years we have built a robust business which operates across diverse international markets and this has allowed us to grow, despite the numerous challenges we faced in the oil and gas downturn. We are in a strong position to achieve our long-term objective of becoming the global contractor of choice for pre-commissioning, commissioning, operations and maintenance, and late-life services across a wide range of sectors.”
An oil and gas asset specialist with more than 20 years’ experience working for major operating companies has been appointed as EnerMech’s European regional director.
Ross McHardy will be responsible for all UK and Norwegian activities at the Aberdeen-headquartered integrated engineering services firm, which expects to double European turnover from £84m to more than £170m over the next four years.
Mr McHardy was previously responsible for safety performance and production delivery on TAQA Bratani’s Harding assets and held a wider strategic role which oversaw engineering and project delivery across Central North Sea assets. Prior to this he was part of EnQuest’s Aberdeen leadership team where he was actively involved in shaping the company’s strategic development and core values.
EnerMech chief executive officer, Doug Duguid, said: “Our strategy is to extend our offshore oil and gas offering to cover the full life-of-field of assets, to strengthen our integrated maintenance and inspection services, and further expand our mechanical and electrical provision to offshore sectors, such as downstream, power, utilities and defence.
“Ross’s experience in senior executive roles with major operators will be an important asset in helping us to better understand the problems faced by our clients and will be key to defining how we enhance service deliver and make a genuine difference to clients’ operations.
“His collaborative leadership style will bring a fresh insight and enthusiasm, as we expand our business by supporting the industry’s stated objective of maximising economic recovery.”
EnerMech’s European division employ 1000 staff in Aberdeen, Great Yarmouth, Bristol and in Norway and current annual turnover is expected to double to an estimated £170 million by 2022.
Ross McHardy said: “After spending more than 20 years on the operator side managing assets and delivering engineering projects, I hope I can transfer that knowledge to assist EnerMech as it continues to disrupt the traditional ways of executing turnkey projects.
“There are signs of recovery in the oil and gas sector but we need to emerge from the downturn with a fresh perspective and to do things differently. We also see exciting opportunities in the UK onshore market, drawing on the experience we have gained in international markets. EnerMech is a solid well-managed but nimble business, and I believe it is in an excellent position to build on its reputation for delivering high quality services, but with a dynamic and challenging approach to what has been the accepted norm.
“Greater collaboration across the supply chain is widely recognised as a necessity and I know from some of the initiatives that are being pioneered by EnerMech that they treat this seriously and are willing to invest in people and resources to make the most of the new opportunities on the horizon.”
EnerMech has secured a new cranes and lifting services contract with an international Operator in the North Sea and extended terms on a number of existing contracts which are worth in excess of £21 million.
The integrated engineering services specialist will provide crane maintenance and crane management to three North Sea platforms on behalf of the new client.
The multi-million-pound five-year contract, with five one-year options, includes offshore crane maintenance and operation, onshore support and repair facilities, crane spare parts, engineering, and consultancy support.
In addition, Aberdeen-headquartered EnerMech have also secured a three-year extension to their existing cranes and lifting services contract with Maersk Oil UK for the Gryphon Alpha and Global Producer III FPSOs and the new Culzean gas field assets in the North Sea.
These awards are further complemented by a one-year extension for Dana Petroleum’s Triton and Western Isles assets, along with a two-year extension for Spirit Energy’s Morecambe Bay assets for crane management services.
EnerMech’s UK director of mechanical handling services, Chris Dixon, said: “Our continued focus on delivering value by provided integrated services with careful cost management is winning us new cranes and lifting service clients and extending relationships with existing customers.
“We are looking forward to forming a strong partnership with this new North Sea client and we believe our template for providing high quality combined services is an attractive offering to UKCS and international Operators.”
Global integrated engineering services group EnerMech team has been recognised in a private equity sector awards ceremony.
The Aberdeen-headquartered company was named as a winner in the Scotland Management Team Awards organised by the British Private Equity & Venture Capital Association (BVCA).
Run in association with Grant Thornton, the awards recognise the highest performing UK companies that are backed by private equity and venture capital. EnerMech chief executive officer, Doug Duguid, collected the Large Company Management Team award at an awards ceremony at Edinburgh’s Balmoral Hotel.
BVCA judges heard how EnerMech’s buy-and-build strategy, combining organic growth with selective acquisitions, had transformed the business from a small start-up equipment rental business 10 years ago, into a global enterprise which provides critical asset integrity and operations and maintenance support to the energy and infrastructure sectors across the full asset lifecycle.
Backed by private equity investor Lime Rock Partners, EnerMech’s broad suite of mechanical, electrical and instrumentation services allows it to provide a unique integrated offering to major international companies and in 2017 generated turnover of £365 million and EBITDA of £43 million, with 2018 revenues forecast to be in the region of £450 million.
The judging panel said: “This market leading growth has seen EnerMech significantly outperform the market over a 10 year period that included not only the global financial crisis but the worst ever prolonged oil and gas industry downturn.”
EnerMech CEO, Doug Duguid, said: “I am delighted that our vision of creating a sustainable, long-term business, which employs 3000 people in 40 locations, has been recognised.
“We will continue to make significant investment in systems and in our people to ensure the business runs efficiently and reaches its full potential. Our ambition is to grow the business to £1.2bn of revenue in the next five years and that will be done by harnessing the proven strategy of organic growth and carefully-selected acquisitions.
“Continually delivering a high quality of service in heavily regulated sectors has been key to our success in entering new markets and geographies and we will replicate that model to achieve the next phase of our growth story.”
Maintenance, inspection and integrity specialist, MInteg, have opened a purpose-built rope access training centre at parent company EnerMech’s Aberdeen headquarters.
The five-figure investment in the Howes Road training centre includes a training tower, a Cat Head crane section and classroom facility, and recently welcomed the first intake of candidates for IRATA training.
The expansion follows MInteg being awarded Training status for rope access activities by IRATA International, the industry body which validates the training and certification for personnel who work at height.
MInteg already held IRATA accreditation to employ rope access personnel to operate in specialist teams, but the new rating now allows the provision of training courses and certification for EnerMech employees and external clients.
The IRATA International Training and Certification Scheme is a globally recognised rope access competence framework and a key qualification for staff working in onshore and offshore industry sectors including oil and gas, renewables, construction, NDT inspection and maintenance. IRATA member companies working to IRATA International standards boast an enviable safety record worldwide.
MInteg director Patrick Gallagher said: “The new training facility and our extended IRATA status will be integral to improving the skills of technicians in tackling the difficulties associated with working at height.
“At MInteg, our rope access specialists are working in close collaboration with EnerMech’s skilled engineers and technicians and have developed combined training and assessment criteria where the quality of work is assessed hand-in-hand with the rope access safety aspect.
“The end result is the client can be assured they are benefitting not only from the increased efficiencies of rope access, but that the engineers and technicians working on their project have proved their competence in transferring skills to the difficult arena of working at height.”
Mr Gallagher said the MInteg approach was a game-changer for the working at height sector.
He added: “Traditionally, contractors with IRATA certification will be asked to do a range of tasks which are often additional to their actual skill-set. We are reversing that approach and giving EnerMech personnel the ability to perform those skills as expertly at height as they do on the ground.”
MInteg recently opened its first international facility in Perth, Western Australia, as part of an expansion strategy which will tap in to LNG and upstream oil and gas opportunities in Australia.
OEM Group and integrated engineering services specialist EnerMech have signed a three-year worldwide collaboration agreement to identify opportunities to deliver engine support services through EnerMech’s global service centres.
The agreement will see OEM supply EnerMech with crane engine services and upgrades and spare parts, as well as provide technical support including engineering and project management on a non-exclusive basis to EnerMech’s global client base.
Formed in 2012, Aberdeen-headquartered OEM is an international group of businesses offering a range of engine services, spare part procurement and fuel conditioning to safety-critical sectors. The firm has been working with EnerMech in the UK since 2016 and recently OEM and EnerMech signed a three-year agreement to provide a Qatar-based oil & gas company with engine field support services covering all diesel engines.
EnerMech operates across 40 global locations with a presence in the UK, Africa, the Americas, Australia, Asia, the Caspian region, the Middle East, and Norway.
OEM managing director, Barry Park, said: “Our team has successfully completed numerous ad-hoc campaigns for EnerMech in the UK and in other parts of the world to help ensure the crane engines under EnerMech’s control remain well maintained and operational.
“It is through the development of this close working relationship, as well as having reliable personnel with an ability to deliver exceptional work in each timeframe, that has contributed to us formalising this relationship further. We also have very strong supplier relationships which enables us to procure any necessary spare parts around the clock from anywhere in the world. We look forward to continuing our strong working relationship with EnerMech globally.”
EnerMech’s international mechanical handling services director, John Morrison, added: “We always look to collaborate with like-minded businesses where it can add value to our end-clients. The association with OEM Group has proven successful across a range of cranes and lifting projects and we are pleased to extend this relationship which offers benefits to both companies and to our clients.”
New Regional Director Appointed To Spearhead Growth
EnerMech has appointed Salvatore Cutino as regional director for Africa as it looks to double revenues in the region to more than £50 million over the next three years.
Mr Cutino has joined the global integrated engineering services specialist from Harris Pye Engineering group where he was international business development manager based in Houston, USA.
He will be based in Cape Town and has more than 40 years’ experience in marine and offshore services, mechanical engineering and project management and a proven track record working on large international contracts across a number of sectors.
Mr Cutino succeeds Steve Ord who will relocate to UAE to lead EnerMech’s operations in UAE and Saudi Arabia. Steve Ord has extensive operational experience in the Middle East and was based in-region before taking up EnerMech’s most senior role in Africa in 2015.
EnerMech employs more than 150 staff in Africa and has a presence in Cape Town, Johannesburg and Northern Cape in South Africa, Angola, Nigeria and Ghana. With further investment planned to expand EnerMech’s capabilities within the mining, power and petrochemical markets and to create a joint venture in Mozambique, the company expects its African regional revenues to double over the next three years to more than £50 million.
After market entry in 2012 and the successful delivery of pipeline services on deepwater projects offshore West Africa, EnerMech expanded with the acquisition of Water Weights International in South Africa, which was followed with the acquisition of the trade and assets of valve supply and service company Control Valve Technologies.
The company extended its geographic footprint by establishing joint ventures with local partners in Ghana, Nigeria and Angola which has presented numerous offshore and onshore opportunities.
EnerMech chief executive officer, Doug Duguid, said: “Africa is a strategically significant region to EnerMech’s future expansion plans and forms an important strand in taking our business to the next level.
“I am delighted we have appointed Salvatore Cutino who has the business acumen and industry track-record to fulfil our ambitions in Africa and he and his team will benefit from the excellent template established by Steve Ord during his three-year tenure.
“We have a first-rate reputation for delivering process and pipeline, cranes and lifting and valve services in Africa and we believe we can replicate this success by expanding our other main service lines, including industrial services, hydraulics and electrical and instrumentation, which will be of value to major infrastructure, construction and industrial projects across the sub-continent.”
Salvatore Cutino added: “I am looking forward to taking up where Steve Ord has left off and to using my extensive experience of working across Africa on major industrial projects to add to EnerMech’s success story.”
Global integrated engineering service provider EnerMech is targeting further international growth with two senior management appointments in the US and UK.
Former senior officer of helicopter transportation company Bristow Group, Mark Duncan, has been appointed to the role of senior vice president of EnerMech’s Americas region.
Mark has worked in a variety of international management roles for ABB, Halliburton, KBR and Subsea7 and while at Bristow Group oversaw global operations which generated annual turnover in excess of $2 billion.
Based in Houston, Mark will be responsible for driving the continued profitable growth of EnerMech businesses throughout the Americas region. In the first three months of 2018, the team has already added contracts in the US market worth more than $30 million, including workscopes at six LNG and petrochemical construction sites.
Colin Smith has joined EnerMech as technical director from a leading global energy company where he was engineering consultant and project manager. With more than 35 years industry experience in senior technical and management roles with KBR, Amec, CNR and Marathon Oil, he will be responsible for driving the expansion of EnerMech’s Electrical & Instrumentation (E&I) division.
In response to client demand for a more focused integrated services offering, EnerMech made its entry into the E&I sector in January 2017 with the acquisition of EPS Group Australia, which provides a range of specialist electrical and instrumentation services to the Australian LNG, infrastructure, power and defence markets.
Colin will focus on widening EnerMech’s E&I expertise into the UK and across its other international locations, including the US where the business is already seeing some early successes.
EnerMech chief executive officer, Doug Duguid, said: “The Americas is an important market where last year we doubled revenues to over $85 million and have kick-started 2018 with contract awards of more than $30 million. Mark Duncan is a first-class business leader with a proven track record at the highest level and he will be central to maximising further growth as we consolidate our position in the US LNG, petrochemical and downstream sectors, and further expand domestically and internationally across the Americas region.
“Our past record of working on Australia’s largest LNG projects has proved a solid foundation for repeating that success in the Americas and we are now providing a combination of mechanical, E&I and engineering services across six LNG sites in the GOM and East Coast regions.”
Mr Duguid added that Colin Smith’s experience in asset management would assist EnerMech in rolling out its eMERge initiative – a partnership with BHGE and PDI – which supports E&P operators to maximise the recovery of oil and gas reserves.
He added: “Colin will be based in Aberdeen but will be responsible for driving the expansion of our E&I offering globally and will be the overall technical authority for this business line. His experience in asset management will also prove invaluable in our move towards providing our customers with integrated maintenance and inspection scopes.
“Both appointments underpin our strategic objectives for the continued development of the EnerMech brand as we widen our offering in our home and international markets. Our acquisition of EPS, and more recently of inspection and integrity specialist MInteg, demonstrates our commitment to providing a suite of integrated services which fit the requirements of our clients in the energy and industrial sectors.”
Maintenance, inspection and integrity specialist and EnerMech subsidiary, MInteg, has opened its first international base as it targets growth in new geographic markets.
The facility in Perth, Western Australia, will be the launch pad for entry in to LNG, upstream oil gas and industrial sectors in the Australasia region and to lead the expansion MInteg has appointed oil and gas integrity and inspection veteran Michael Munro as Operations Director in Australia, with Pete Speight joining as Operations Manager.
MInteg will initially offer integrity management, non-destructive testing and mechanical rope access services and, capitalising on parent company EnerMech’s extensive presence in Australia, will look to add facilities in Gladstone, Darwin and Melbourne.
Patrick Gallagher, MInteg director, said years of experience and immersion in North Sea projects would be attractive to Australian clients and he is confident the company’s integrated approach of providing working at height expertise with traditional technical skills will prove successful.
He said: “We believe there are opportunities for MInteg services in LNG and upstream gas on the East Coast, in Victoria. Queensland, the Northern Territory and South Australia and in oil and gas across Western Australia.
“Australia has gone through a massive construction phase over the last 10 years and has now transited in to the operating phase which will require additional integrity management and inspection expertise. We identified that the market is ready for a new entrant and we will leverage the relationships established by EnerMech to showcase our capabilities.
Michael Munro added: “A combined service offering which pulls in EnerMech’s core services and compliments our strengths in NDT and rope access will offer something new to the oil, gas, LNG and industrial sectors, and we are looking forward to extending our footprint in Australia, which will be a precursor to further international growth.”
Integrated engineering services specialist, EnerMech, has signed a partnership with Farris Engineering to provide safety relief valves and parts to the Australian market.
EnerMech provides a range of mechanical, electrical and instrumentation services to the oil, gas, mining, infrastructure, chemical, petrochemical, pulp and paper, water, utilities mining and aluminum industries and employs 870 staff in Australia where it operates eight bases across Western Australia, New South Wales, Victoria, Queensland and Northern Territories.
Farris Engineering, a business unit of Curtiss-Wright (NYSE: CW) has a 70-year track record in designing and manufacturing a wide range of spring-loaded and pilot-operated relief valves.
EnerMech will act as an accredited sales agent, assembler, and stockist of new Farris safety relief valves and parts. The partnership includes sales representation of Curtiss-Wright’s Solent & Pratt speciality butterfly valve range and its Phonix, Strack & Daume severe service isolation and control valves for the power and chemical industries.
EnerMech’s Australian-based valves team offers complete sales, assembly, and maintenance, repair, overhaul and service capability for a wide variety of relief valves, with skilled technicians providing both emergency and scheduled repair services either onsite or in their purpose-built valve workshops
Allan Hart, EnerMech’s Regional Director for Australia, said: “Forging alliances with a blue-chip product and service providers such as Farris Engineering adds to our already strong valves offering in Australia and provide our clients with greater choice, flexibility and cost savings.
“Farris Engineering has a long-established international pedigree and we are looking forward to rolling out their first-class valves portfolio in Australia and to establishing a long-lasting and mutually beneficial relationship.”
EnerMech is expanding its valves division with the acquisition of the UK valves business of Denholm Valvecare (DV).
The global integrated engineering services group has acquired the UK trade and assets of the valves division of family-owned Denholm Oilfield Services for an undisclosed sum.
EnerMech expects its UK valves business to generate around £7m revenue in 2018 following the deal, which will see all DV valves equipment, inventory and an estimated 25 staff transfer to the Aberdeen-headquartered business.
EnerMech chief executive officer, Doug Duguid, said: “The opportunity arose to acquire a well-established valves business which will upscale our existing UK valves business and offer economies of scale.
“Denholm Valvecare has a lengthy track record of success and enjoys many positive relationships in the industry. This deal adds value to existing clients of both businesses while giving us a strong platform to grow the service in the years ahead.”
The acquisition will also bolster EnerMech’s UK valves management team with the addition of a number of senior DV staff who are well-respected in the valves services sector.
EnerMech supplies a wide range of relief, isolation, control and general valves to the onshore and offshore energy industry and wider industrial services sector. A fully integrated valves service includes the procurement, specification, inspection, testing and quality control which minimises shut down and installation schedules without comprising on safety or quality.
The deal follows on from EnerMech’s acquisition last year of maintenance, inspection and integrity specialist Minteg Ltd and the purchase of Australian and US-based EPS Group which provides electrical and instrumentation services to major infrastructure and power projects.
EnerMech Norway has won contracts to provide control and certification services to two of Norway’s leading power generating companies.
In line with EnerMech’s global strategy to diversify into new markets, the company said securing the land-based contracts complemented their long-established reputation in offshore engineering services.
EnerMech has been awarded a three-year frame agreement, with a two-year option, to provide service control and certification of lifting equipment at all power plants owned by Statkraft in mid and north Norway. As Europe’s largest generator of renewable energy, Statkraft employs 3800 staff in 16 countries in a number of sectors including hydropower, wind and solar power, gas-fired power and district heating supplies.
Skagerak Energi, one of Norway’s largest power grid companies, has also awarded EnerMech a three-year frame contract, with a two-year option, to provide control and certification of lifting equipment at the company’s power plants.
EnerMech Norway’s first success out with the traditional oil and gas sector was the award of a contract to manage the servicing and maintenance of all cranes and lifting equipment located at properties operated by the Norwegian Defence Estate.
Trond Møller, the EnerMech general manager for Norway, said: “Both these contract wins highlight the versatility and varied skills set of our cranes and lifting specialists.
“While a core part of the business remains the offshore sector, we will continue to identify new markets and to establish fresh relationships which provide us with the opportunity to grow the EnerMech brand. We are delighted to be kicking off 2018 by securing landmark contracts with two of Norway’s most respected power generation businesses.”
EnerMech said seven new engineering and operational positions would be created to service the contracts and other work.
Engineering services group EnerMech has taken a majority stake in Aberdeen-based maintenance, inspection and integrity specialist MInteg Ltd.
MInteg provides a range of specialist maintenance, integrity and inspection services to the oil and gas, renewables, utilities and other major process industries, and offers full IRATA certified rope access capability.
MInteg founder Colin Smith and highly experienced maintenance and integrity experts John Bruce and Patrick Gallagher – who recently joined MInteg from operator Apache North Sea – have relocated to EnerMech’s Aberdeen headquarters and the business will continue to trade under the MInteg brand.
The MInteg team brings with them a strong track-record in non-destructive testing, rope access services, integrity management, inspection services and rotating equipment maintenance, including gas turbines and compressors.
EnerMech said the investment was part of an ongoing strategy to broaden its range of engineering services and to optimise support for late-life hydrocarbon assets by safely reducing costs and improving asset integrity.
Clients had indicated a requirement for integrity and inspection services and a broader maintenance capability and EnerMech had responded to that need.
EnerMech chief executive officer, Doug Duguid, said: “MInteg is a highly complementary business to our existing service lines and their skillset broadens out the capability of the integrated services we can offer to the energy, utilities and infrastructure sectors.
“Customers have indicated they would welcome an inspection and integrity offering as well as a wider maintenance offering which encompasses rotating machinery and the MInteg management team are one of the most experienced in the industry in this regard. With a focus on minimising costs for our clients while creating more cohesive and co-operative business models, this acquisition is consistent with our ambition to be recognised as the prominent provider of integrated services.
Mr Duguid said MInteg was a “highly scaleable business” and whilst the initial focus would be on the UK market, EnerMech would support its global ambitions by rolling out its services to existing clients in Africa, Australia and the US.
This is the second acquisition EnerMech has made in 2017 and follows on from the purchase in January of EPS Group which provides electrical and instrumentation services in Australia and the US.
EnerMech now has 3000 employees operating from 40 bases located throughout the UK, Europe, Africa, Asia, Australia, the Middle East and Caspian and the US.
EnerMech, the global provider of integrated mechanical, electrical and instrumentation solutions, today revealed that its 2016 revenues rose by almost £10m to £263.7m on the previous year and is forecasting that 2017 trading will increase by nearly £100m to around £360m.
Annual accounts to December 2016 also show profits (EBITDA) rose by £4.4m to £24.8m in the same period and it is expected 2017 profits will increase further to around £42m.
Figures lodged at Companies House show EnerMech’s UK division recorded similar success with revenues of £128.3m, up from £123.7m the previous year, while EBITDA more than doubled to £14.4m.
EnerMech employs 3000 staff across 40 locations in the UK, Europe, the Middle East, Caspian, Asia, Australia and the Americas, and has evolved in to one of the world’s leading integrated engineering contractors, continuing to serve the energy sector whilst expanding its service offering into new sectors, including renewables, LNG, defence, power, infrastructure and petrochemicals.
The acquisition in January of electrical and instrumentation specialist EPS Group, which has a presence in Australia and the US, expanded the Group’s capability beyond its original mechanical focus and has provided EnerMech with access to large scale infrastructure projects and entry to the metals and utility sectors.
EnerMech chief executive officer, Doug Duguid, said: “We remain focussed on increasing our presence in international markets, strengthening our reputation in our core energy sectors, while building on the significant inroads we have made in to other important markets such as infrastructure and utilities.
“We have focussed on developing fresh ways of working and introduced innovative new business models for clients who are seeking a different approach in light of the changed oil and gas environment. Prudent cost savings, a strategic expansion into new sectors, and carefully targeted acquisitions, underpin what is an encouraging set of financial results.
“EnerMech is constantly evolving and our approach to providing truly integrated engineering services means we can remain agile and responsive to client requirements, which puts us in a strong position to maximise growth potential in the years ahead.”
EnerMech is enjoying significant growth in its US business, buoyed by success on LNG pre-commissioning contracts and in the petrochemicals sector, and it expects 2017 revenue in the Americas to double to more than £60m and staff numbers to increase from 150 to around 400.
The company recently announced it had secured a five-year contract to provide hose and hose fittings supply and services for Shell’s Prelude FNLG facility in Western Australia. In May it revealed it had formed a joint venture with Iraq’s Khudairi Group to target the country’s re-emerging oil, gas and infrastructure sectors, and in April it announced it had won £40m worth of contracts in the Caspian region, providing cranes and lifting, process, pipeline and umbilicals, valves, training and industrial services to a range of international operators.
EnerMech’s focus on diversification is paying off after it was awarded a significant BAE Systems contract on behalf of the Royal Navy.
The Aberdeen-headquartered integrated engineering contractor will provide a Flexible Hose Assembly Management Service (FHAMS) to be used on a large number of Royal Navy vessels.
The seven-year agreement, worth an estimated £2.5m, covers hose integrity management for more than 60 surface fleet vessels consisting of Type 23 frigates, Hunt Class mine hunters, River Class offshore patrol vessels, and survey and landing craft. This has resulted in an increase of a small number of new jobs.
Through a series of strategic acquisitions and organic growth, EnerMech is diversifying in to the defence, infrastructure and utilities sectors, while strengthening its track record in traditional oil and gas markets.
Paul Boyes, project manager for Equipment Management at BAE Systems, said: “EnerMech have a proven track record in the delivery of hose integrity management and had the capacity and drive to deliver and enhance the hose integrity management service to the Ministry of Defence (MOD).”
EnerMech’s regional director for Europe, Phil Bentley, said: “We have been engaged on earlier MOD contracts, but this is the first time we have provided hose integrity management services on such a large scale to the Royal Navy.
“We think our range of integrated services and the genuine alignment of our business lines is a proposition which is of interest to the military and defence sectors and we are looking forward to demonstrating our capabilities to BAE Systems and the Royal Navy.”
With more than 3000 staff spread across 40 locations in the UK, Europe, the Middle East, Asia, Australia and the Americas, EnerMech has expanded from its oil and gas origins and is now active in the mining, renewables, LNG, defence, power, infrastructure and petrochemicals sectors.
Global engineering and maintenance services provider, EnerMech, has been awarded a five-year contract for hose and hose fittings supply and services for Shell’s Prelude FLNG Facility in Western Australia.
The Prelude FLNG contract will be administered from EnerMech’s Henderson base in Perth while engineering and service support will be provided from regional facilities across Australia, including Darwin in the Northern Territory.
EnerMech’s Regional Director Allan Hart said: “We are pleased to announce the appointment of EnerMech as the Hose Integrity Management and Supply contractor on the prestigious Prelude FLNG Facility.
“This latest award strengthens EnerMech’s reputation as a leading maintenance service provider with a willingness to adapt to the changing oil and gas environment.”
The Prelude FLNG facility recently arrived at its location 475km north east of Broome where the hook-up and commissioning phase of the project is underway.
With our origins in the oil and gas industry and as an early promoter of integrated services, EnerMech has evolved to become one of the world’s leading integrated engineering contractors, continuing to serve the energy sector but also establishing an impressive track record in the international utilities and infrastructure markets.
The company’s founding ethos in 2008 was to provide safer, smarter solutions for clients and to devise fresh ways of working, to champion innovation, and to offer a fast response to changing market conditions and client requirements.
Those basic principles have forged EnerMech’s reputation as a leaner, stronger, more efficient and responsive provider of integrated services and, despite the oil and gas downturn of recent years, the company has continued its journey of international growth.
Global focus
We continue to broaden our services, combining organic growth with a strategic acquisition and have expanded to provide allied services to a range of multi-billion-dollar infrastructure projects.
Our acquisition of Australian electrical and instrumentation provider EPS Group not only added this critical service but has opened doors for other EnerMech business lines in oil, gas, metals, utility and infrastructure projects. EPS Group has worked on some of Australia’s largest infrastructure projects, including the A$2.1bn Sydney Light Rail project, major defence industry contracts and Australia’s largest road-building programme.
In the US, the EnerMech brand is on an upward trajectory and it is expected revenue in 2017 will double to more than £70m with staff numbers increasing from 150 to around 400 in the region by the year-end. This is in part driven by strengthening our existing relationships in the LNG pre-commissioning and petrochemical markets and we continue to work on projects including Sabine Pass, Cove Point, Freeport and Cameron LNG.
Utilising a varied skill-set found across all our business lines, we are adept at diversification and year-on-year capital investment ensures EnerMech can offer clients the latest equipment and technologies available on the market. This has maintained our position as the premier provider of integrated services across the asset-lifecycle, from commissioning through maintenance and operations support and finally, decommissioning.
An integrated approach
With extensive North Sea experience and a keen appreciation that maximising production from late life assets is a key objective of many clients, we have accelerated the development of our integrated services model and introduced flexible working contracts – an approach which is finding wide appeal, not just in the mature basins of the UKCS, but increasingly in the major hubs we operate in such as the Caspian, Middle East, Australia and the Americas.
This means we can offer an unrivalled integrated approach for shutdown, installation or maintenance work scopes and deliver significant time efficiencies and associated cost savings to clients.
Adding to our capability, EnerMech recently took a majority stake in MInteg Ltd, which provides integrity inspection services to the energy, utilities and infrastructure sectors. The company has an excellent track record in non-destructive-testing, rope access services (IRATA qualified) and the modification, upgrades and refurbishment of rotating machinery, including gas turbines and compressors.
MInteg founder Colin Smith and highly experienced maintenance and integrity experts John Bruce and Patrick Gallagher – who recently joined MInteg from a major North Sea Operator – have now relocated to EnerMech’s Aberdeen headquarters and the business will continue to trade under the MInteg banner.
EnerMech chief executive officer Doug Duguid said: “MInteg is an excellent addition to our capabilities and is part of our strategy to become established as the premier provider of integrated services. Customers have indicated they would welcome an inspection and integrity offering as well as a wider maintenance offering which encompasses rotating machinery, and the MInteg management team are one of the most experienced in the industry in this regard. Whilst our initial focus is to broaden this service out into the UK market, we see significant opportunities globally, particularly with our clients in Australia, Africa and the US.”
Ground breaking strategic alliance
Underlining our commitment to championing smarter solutions, we have formed a partnership with Baker Hughes, a GE company and PDI, to establish a groundbreaking initiative which will help North Sea operators and new entrants improve production while reducing operating costs.
The eMERge strategic alliance mirrors the objectives of the Oil & Gas Authority’s Maximising Economic Recovery initiative and combines new digital technologies, advanced engineering capabilities and innovative financing and business models, to help support operators extend the economic lifecycle of mature assets.
EnerMech’s Integrated Maintenance & Integrity Director, Stuart Smith, explained: “Many late-life assets have locked-in potential but the costs of lifting the oil or gas is prohibitive. eMERge is focused on using smarter engineering techniques and digital technology to improve production efficiency. An essential element of the partnership is to look at fresh ideas around financing, including, for example, outcome-based funding models which share the risk, in order to safely and economically extract the maximum hydrocarbons possible.”
EnerMech’s installation, commissioning and operational capabilities will combine with GE’s technology, state-of-the-art digital solutions, products and services and financing capabilities, while PDI will provide project management and engineering expertise. “There is a consensus across the industry that extending the life of producing assets will be critical to the basin’s future and by working together we hope to be able to provide operators with the support they need to address these challenges,” said Doug Duguid. With revenue expected to reach £370m in the current year and 3000 staff spread across 40 locations in the UK, Europe, the Middle East, Asia, Australia and the Americas, EnerMech has expanded from its oil and gas origins and is now active in the mining, renewables, LNG, defence, power, infrastructure and petrochemicals sectors.
With so much geo-political uncertainty, global economies will continue to face challenging times in the years ahead, but EnerMech has positioned itself well to assist clients across all business lines with our continued focus on smarter, safer solutions which deliver cost and time efficiencies.
EnerMech has signed up as one of the first businesses in Scotland to support Graduate Level Apprenticeships (GLAs).
The Robert Gordon University in Aberdeen is pioneering the work-based learning degrees which have been set up to address the national digital skills shortage.
EnerMech will support an undergraduate apprentice on the IT Management for Business BSc (Hons) course which is being run by the university’s School of Computing Science and receives funding support from Skills Development Scotland.
GLAs enable participants to earn a degree while working and they are delivered in partnership with employers over the course of four years. Much of the learning takes place in the workplace with active involvement from the employer and EnerMech has signed a Collaboration Agreement with RGU to define how we will support the apprentice during the course.
Shirley Smith, HR Director at EnerMech said: “We see the introduction of the GLA as a great way to improve the skills base of our existing personnel. It also gives us the opportunity to hire people straight from school and have them working in the business and learning all aspects while studying to achieve a degree.
“We currently employ engineers who have varying levels of qualifications and experience. Having access to the course gives us the ability to develop our people and retain greater skills in the business for the future.”
Professor John Harper, Deputy Principal at RGU, said: “We are delighted that EnerMech has come on board in support of the GLA initiative which represents a major milestone for the university and for work-based learning opportunities in Scotland.
“GLAs represent an innovation across teaching and learning, built around a structure which formally recognises the value of time in the workplace as part of a learning environment.”
EnerMech Australia’s Electrical & Instrumentation team have extended their involvement in one of the country’s largest infrastructure projects.
The landmark A$ 2.1bn CBD and South East Light Rail Project will be operational in early 2019, with 19 stops over a 12km route.
We have been awarded the contract for the design and construction works of Moore Park Tunnel Temporary Lighting package by global infrastructure developer Acciona.
This is in addition to a raft of other work being undertaken by specialised EnerMech E&I teams which includes electrical support for production of specialist ITP/ITC and method statement documentation; providing CAD Welding and testing services on track slabs; running, terminating and testing 750V negative cables (DC); cable running such as rail cross bonding, straight current collection pit, rail test pit and cables to voltage tripping device (VTD).
John Cox, EnerMech’s Electrical & Instrumentation Technical Director, said: “The breadth and scope of works which we are contributing to the CBD and South East Light Rail Project underlines our organisational ethos of being capable of delivering multi-disciplined services in highly specialised areas which provide value to clients across the entire project lifecycle.”
Engineering services specialist, EnerMech, has been awarded a contract on the £150 million polar research vessel, the RRS Sir David Attenborough.
The new polar ship is commissioned by the National Environment Research Council, (NERC) is currently under construction at Cammell Laird’s Birkenhead shipyard. It will be operated by British Antarctic Survey (BAS) and will transform how ship-borne science is conducted in the Polar Regions.
The new ship, named after world-famous naturalist and broadcaster Sir David Attenborough, is part of a major Government polar infrastructure investment programme designed to keep Britain at the forefront of world-leading research in Antarctica and the Arctic.
Aberdeen-headquartered EnerMech has been awarded the contract for the consultancy, manufacture, material supply, installation, hook-up and commissioning of hydraulic systems aboard the 128m long vessel.
The 18-month workscope includes the design and install of the Scientific HPU & ring main, hydraulic installation of deck hatches, handling/launch equipment and all other hydraulic driven equipment. EnerMech will have a dedicated team on-site at the shipyard during the build process.
EnerMech technical support manager, Neil McNaughton, said: “We will be working in close contact with Cammell Laird and other main contractors including Rolls-Royce, to ensure that the vessel’s hydraulic systems conform to the exacting operational requirements of BAS and the Natural Environment Research Council (NERC) who have commissioned the build of this vessel.
“We are delighted to be contributing to such a unique project and the award underlines our versatility in being able to undertake a wide range of services out with our more traditional sectors such as oil and gas.”
The RSS Sir David Attenborough is due to be commissioned in summer 2018 and after extensive sea trials is expected to sail on its first Antarctic scientific voyage for the 2019/2020 season.
EnerMech, GE Oil & Gas and PDI today launched eMERge, an innovative partnership supporting existing and new entrant E&P operators to maximise economic recovery of reserves.
This strategic alliance will offer a differentiated range of integrated production and operational support services across the hydrocarbon value-chain. The proposition is underpinned by innovative outcome-based solutions and funding options that align goals to ensure the benefits identified are unlocked.
The alliance combines GE’s technology, state-of-the-art digital solutions, products, services and financing capabilities, with EnerMech’s installation, commissioning and operational capabilities and PDI’s project management and engineering expertise.
The range and scope of service has been developed to ensure that both existing and new entrant operators can access integrated production, operations and maintenance optimisation support services to maximise asset value creation.
The alliance will:
Help identify opportunities to increase productivity while reducing operating costs and downtime through unplanned outages
Offer services including project management, topside and subsea engineering, construction and commissioning, and field optimisation solutions
eMERge aims to mirror the objectives of the Oil & Gas Authority’s Maximising Economic Recovery (MER) initiative, and will focus on supporting operators to extend the economic lifecycle of assets by leveraging a combination of new digital technologies, advanced engineering capabilities and innovative financing and business models. New E&P entrants will also be able to access an Integrated Production and Operations support service.
GE’s digital technologies like Predix – the world’s first and only operating system built exclusively for industry – will help operators drive transformational business and financial performance by closing the gap between their operational assets and the data they generate. Advanced software solutions can provide operators with tools to monitor and optimise the performance of their assets, predict problems that would impact production, and thereby enable proactive intervention to reduce production outages and system downtime.
Nick Dunn, Subsea Services & Offshore Leader at GE Oil & Gas, said: “This collaboration between three proven leaders in their respective fields has the potential to deliver real value and much-needed support for North Sea operators, who are under escalating pressure in the current climate to produce more for less.
“The goal is to provide new ways to stimulate and optimise delivery, improve productivity and optimise operational expenditure, thereby maximising the economic recovery of the asset and extending field life beyond current Cessation of Production dates. The consortium will help operators identify opportunities they may have otherwise been unaware of, or are unable to access, through the development of innovative finance and commercial models.”
EnerMech Chief Executive Officer, Doug Duguid, said: “All parties are committed to the North Sea region and deeply focused on helping operators drive productivity and efficiency improvements. There is a consensus across the industry that extending the life of producing assets will be critical to the basin’s future and by working together we hope to be able to provide operators with the support they need to address these challenges.”
Mark Preece, Executive Vice Chairman for PDI, said: “This new consortium is ideally placed to tackle many of the biggest challenges confronting North Sea Operators today.”