EnerMech Feature – Platform Magazine September 2017

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.