Three Year Cranes and Lifting Scope Covers All Norway’s Defence Estate

Engineering services specialist, EnerMech, has been awarded a strategic cranes and lifting contract by the Norwegian Defence Estate Agency (NDEA).

NDEA is responsible for all Norwegian Armed Forces properties and its portfolio comprises of more than 12,000 facilities spread over 4.1 million square metres.

The three-year contract, with an extra one year option, marks EnerMech’s first success out with the Norwegian offshore oil and gas sector which traditionally accounts for the bulk of its business.

EnerMech will provide expertise and manpower for the service and maintenance of all cranes and lifting equipment located throughout the NDEA estate.

Trond Møller, EnerMech general manager for Norway, said: “Our reputation has been built in the oil and energy offshore market and we are pleased that our long standing pedigree is being recognised with the award of this prestigious contract.

“It is widely accepted the offshore industry in Norway and abroad is facing challenging times and this contract provides an important bridge for EnerMech to diversify in the onshore and defence sectors.”

EnerMech is a major provider of integrated services to the energy sector and has three Norwegian bases in Stavanger, Bergen and Hammerfest. In addition to cranes and lifting, the company also specialises in other areas including valves, hydraulics, pipeline and process service and industrial services.

EnerMech has been awarded its first contract by Subsea 7 in the Australian oil and gas market.

The mechanical engineering group will perform a range of subsea flowline and umbilical pre-commissioning on the Woodside-operated North West Shelf (NWS) Project’s Persephone project and North Rankin Complex in Western Australia.

The workscope includes flooding, hydro-testing and dewatering of flow lines & well jumpers and testing all hydraulic, electrical and optical cores on the main line umbilical, EFL’s and HFL’s with work expected to start in December.

EnerMech is one of the foremost suppliers to large scale oil, gas and LNG projects in Australia and has seven bases in-country, including Perth, Melbourne, Darwin and Gladstone.

The company already undertakes specialist testing work on the North Rankin Complex for Wood Group PSN so can offer continuity and familiarity with Woodside and North Rankin requirements.

EnerMech’s Australia regional director, Allan Hart, said: “As a company, we have a strong relationship with Subsea 7 in the major international oil and gas producing hubs and we are delighted to consolidate this link with our first contract award in Australia.

“We place a heavy emphasis on innovation and trying to find fresh solutions to client requirements and our proposal fitted well with Woodside’s specification for the flooding, cleaning and testing of offshore pipelines.

“Our strong reputation for competent umbilical testing, investment in the latest equipment and a collaborative approach to delivery has put us in a good position to win other strategic contracts on major Australian oil and gas projects.”

EnerMech has signed a distributorship agreement with Pressure Technologies Plc owned company Hydratron which covers North, South and Central America.

In addition to providing sales and technical support for Hydratron’s range of high pressure and flow control products, EnerMech will also act as a service and build-centre for the Americas.

Formed more than 35 years ago, Hydratron are widely recognised for creating innovative high-quality products and solutions that provide performance assurance. The company supplies the oil and gas, petrochemical, power generation, aerospace, automotive and defence industries.

With bases in Houston, Broussard, Slidell, (TX) Casper (WY), Trinidad and Mexico, engineering services group EnerMech is strategically positioned to roll out Hydratron products and services into new geographic and sector markets, while adding value to its own hydraulics services business line.

Frazer Thomson, EnerMech general manager hydraulics for Americas, said: “We believe that with the geographic reach EnerMech can offer, there are excellent opportunities to introduce Hydratron products to a new client-base and at the same time create opportunities for our own well established service lines.

“The EnerMech-Hydratron partnership is a strong match and we can dovetail a lot of allied services to offer clients of both companies a much more integrated and cost effective service.”

As part of the agreement EnerMech will also have full rights to rent a fleet of Hydratron equipment out to the market place and the intention is to extend this fleet moving forward.

Hydratron commercial director, Findlay Beveridge, said: “Hydratron Inc and EnerMech have enjoyed a close working relationship over many years and we are delighted that this partnership will allow Hydratron to utilise EnerMech’s resources, reach, regional offices and expertise, to better serve our growing customer base."

Aberdeen-based engineering services group, EnerMech, view the African continent as a market of huge strategic importance, more so following the dip in the price of crude oil.

Traditionally focussed on the international offshore oil and gas sector, EnerMech has realigned its core business to tap in to a number of opportunities in Africa’s onshore hydrocarbons, mining, industrial services, solar power generation and petrochemicals industries.

The approach is paying off and EnerMech expects to double its African workforce to 300 by the end of 2017 and to increase revenues in the next 12 months from £16.5 million to £24 million.

The company’s philosophy is to put “boots on the ground” and to build a solid operating infrastructure in-country. In South Africa, where the company has just won its first industrial services contract – for rope access services and blasting and painting oil storage tanks – EnerMech has bases in Cape Town and Johannesburg, recently opened a facility in the Northern Cape and has plans for a presence in Durban.

Elsewhere, the EnerMech brand is well-established in Nigeria, Ghana, Democratic Republic of Congo and a recent £5 million investment in facilities in Angola will create opportunities in the repair and refurbishment of drilling risers.

Steve Ord, EnerMech regional director for Africa, said: “We are an international company with more than 2300 staff working from more than 35 locations but our core philosophy is to invest locally and establish a genuine presence in-country. We have been doing this in Africa since 2011 and it is paying off with year-on-year growth and a flexibility which allows us to respond very quickly to changing market conditions and client demands.

“Having equipment and key personnel on the ground leads to a strong understanding of regional markets, local customs, the complexities and challenges of working in a diverse landscape and gives us a competitive advantage over rivals who take the short-term approach of flying in squads of people and kit to do particular projects.

“Africa has huge potential both offshore and onshore and many of the hard lessons learned by working in the North Sea and other mature basins over many years has positioned us to play a central role in some of the largest projects which are just starting or will kick off in the next few years.”

EnerMech’s cranes and lifting division has benefited from a £85 million-plus uplift to its order book with a series of contract wins, extensions and renewals.

The mechanical engineering group has consolidated its position as a major international cranes services provider, strengthening its reputation in the Caspian region and extending its reach by winning new work in the Gulf States, Far East and the Caribbean.

In Azerbaijan, BP Exploration (Caspian Sea) has renewed a contract which EnerMech has held since 2010 for up to a further five years. Crane operations, maintenance and inspection services for 16 BP offshore pedestal cranes and two new platforms on the Shah Deniz 2 project are included in the contract. EnerMech has also undertaken to employ an Azeri-only nationalised workforce for the contract term which also includes the provision of spare parts, repair and refurbishment and training.

In Qatar, EnerMech has secured exclusivity for the provision of crane maintenance services to the Al Shaheen Field. As part of its integrated services approach, EnerMech will also offer process, pipeline and umbilicals, valves inspection and repair, hydraulics and training services.

A three-year deal to provide crane operation and maintenance services to Daewoo International E&P on the Shwe Gas field in the Bay of Bengal, marks EnerMech’s first long term contract award offshore Myanmar.

A major breakthrough has been made in Trinidad & Tobago where EnerMech has been awarded a crane operation and maintenance contract by an international operator, and a new base has been established on the island from which EnerMech will offer all its service lines in line with its standard approach to entering a new market.

In the North Sea, Nexen Petroleum U.K. Limited have awarded EnerMech a five-year crane operation and maintenance contract covering the Buzzard, Scott and Golden Eagle platforms.

Also in the UKCS, contracts first awarded to EnerMech as far back as 2006 by two major oil and gas operators have been renewed for a further three years and EnerMech will continue to provide crane maintenance, mechanic and operator crews, spare parts and equipment inspection services on a combined total of 11 platforms. 

EnerMech’s international mechanical handling services director, John Morrison, said: “It has been an excellent 2016 to date for our cranes and lifting services division with key contracts renewed by major clients alongside winning work in new markets and extending our market share. This is quite an achievement in today’s competitive environment.

“Our long-held belief that clients want integrated services and not a stand-alone provision of one service line is paying off, and it is particularly relevant in the current market conditions where operators and contractors are demanding much more cost-effective methods of doing business.

“Extending contracts in Baku with BP and in the North Sea, winning our first crane contracts with Nexen, Daewoo and in Trinidad & Tobago, while securing extra workscopes in Qatar, all indicate that our cranes and lifting expertise is highly regarded across the oil and gas producing world.

“We will continue to seek out more efficient methods of providing cranes and lifting services to clients which are capable of being integrated with our other business lines. The energy industry is demanding more collaboration to counter the downturn in the oil price and this is an approach which has been championed by EnerMech since the company was founded.”

EnerMech has signed a collaboration agreement with pipeline solutions specialist Snap Ring Joint (SRJ) to provide weld-free mechanical coupling products to international clients.

SRJ is a well-established pipe connection and repair solution provider to the energy sector and has pioneered disruptive technology in developing a suite of products which are compatible with all sizes of pipework.

Mechanical engineering group EnerMech’s in-country presence in the major oil and gas producing hubs will offer mutual benefits to clients of both companies as it rolls out SRJ couplings in Australia, Canada, Europe, Mexico, South Korea, UAE and USA.

EnerMech’s technical director, Phil Bentley, said: “Our objective across all of our business lines is to find new ways of reducing costs for clients but at the same time maintaining and improving the standard of safety and quality of service we provide.

“Working in partnership with SRJ is a great example of this approach as this agreement allows us to deliver a safer product compared to other market alternatives and one which is more cost effective.”

SRJ couplings are suitable as a direct replacement for standard flange type or welded connections to critical and non-critical piping connections and offer the practical benefits of a non-welded and ‘hot-work free’ connection without compromising connection integrity.

SRJ chief executive officer, Alex Wood, added: “Our partnership with EnerMech demonstrates the value of our product range and will help SRJ cement its position as the leading provider of weldless connectors to the energy sector.

“EnerMech’s commitment to providing a first class customer experience and reliable service provision mirrors our own ethos and this agreement is a big step forward in establishing SRJ couplings as the market leader in our field.”

Mechanical engineering specialist EnerMech is in the process of delivering a £5million-plus contract to support the turret delivery team on BP’s Glen Lyon FPSO which has arrived for hook-up operations West of Shetland.

The Glen Lyon is a key element of the multi-billion pound Quad204 project, which includes redeveloping the Schiehallion and Loyal fields, extending production out to 2035 and possibly beyond.

EnerMech provided winch engineering, associated operations and materials for the FPSO’s main turret system riser winch handling system while the Glen Lyon was under construction and will provide ongoing field support during hook-up operations through to 2017.

Aberdeen-headquartered EnerMech has previously supported BP in 2014 on the preparation and operation of the FPSO Schiehallion’s riser winch system during the field suspension and vessel removal phase.

EnerMech technical support manager, Neil McNaughton, said: “We embedded an Engineering Technical team within BP’s project team and assigned a 20-man team of supervisors and technicians who were specially trained for infield operations, maintenance and support of turret services.

“EnerMech has a proven track record in supporting complex FPSO projects relating to vessel new-builds and we were delighted to play an integral part in pushing forward this ambitious BP project.”

EnerMech Australia has signed a distribution agreement with Parker Hannifin, the world’s largest motion and control technologies company.

The agreement will see mechanical engineering group EnerMech act as Specialist Parker Distributor in the Australian oil and gas sector.

Covering a broad spectrum of technologies, EnerMech will use Parker products for client requirements in hydraulics, pneumatics, filtration, instrumentation, fluid connectors and seals.

EnerMech will recruit additional staff across the country to support the new service and has invested in stock and hose manufacturing equipment in key locations across both eastern and western coasts. Both companies are working together to develop product-specific training programmes for staff to enhance expertise in Parker’s portfolio.

EnerMech Hydraulics Manager in Australia, Grant Marson, said: “We are delighted to align EnerMech with the world’s market leader in motion and control technologies and this agreement adds value to our clients in the Australian oil and gas industries.

“Having engaged with our clients and listened to feedback from the market, we recognised an opportunity to provide specialist expertise in the specification and application of fluid power and control technologies to the oil and gas sector in Australia.

“This agreement ensures that EnerMech is well placed to support existing and potential clients as the industry transitions towards an operational and maintenance environment, where quality products supported by service excellence will become essential elements in providing value for money.”

EnerMech has operations in eight Australian cities stretching from Perth to Gladstone, Darwin and Melbourne, and employs more than 500 staff in its Australian region, with numbers expected to grow to more than 700 in the next year.

The company has operations in 20 countries and is represented in all of the global oil and gas hubs where it provides a broad range of mechanical services, including cranes and lifting, valves, hydraulics, industrial services, process, pipeline and umbilicals (PPU), equipment rental and training services.

Mechanical engineering group, EnerMech, grew revenue by 27% in 2014 with turnover rising to £258.9 million from £202.5 million, while profits (EBITDA) increased from £14.2 million to £26.7 million.

In the latest accounts to December 2014 lodged at Companies House, EnerMech’s UK division pushed up revenue on the previous year from £131.5 million to £141.7 million and recorded profits after tax of £4.5 million.

Chief executive officer, Doug Duguid, said that the Aberdeen-headquartered Group revenues in 2015 would be in line with what was achieved in 2014, a performance which he was pleased with against a depressed oil price.

Mr Duguid said: “We are working in a challenging environment given the continuing decline of the oil price, with most customers focussed on reducing operating costs.

“Our multi-business line integrated offering puts us in a good position to respond to the industry’s call for greater co-operation and we are finding common solutions which can greatly increase efficiency.”

Mr Duguid said EnerMech had witnessed a drop in activity in harder hit regions during 2015, including the UK sector, but was continuing to invest in infrastructure and extend market share in other regions where growth opportunities existed.

He added: “We expect it will be the latter part of 2017 at the earliest before the downturn eases but we have plans in place to address this and as we enter 2016 we are fortunate that we have an international infrastructure and strong back-log of projects in the pipeline.

“We have identified growth potential in Africa, Middle East, Caspian and the Americas and will draw upon lessons and expertise gained in mature areas such as the UK and Norway to maximise those opportunities.”

EnerMech employs 2300 people and operates from 35 UK and international bases, providing seven main business lines to the oil and gas sector, including cranes and lifting, hydraulics, equipment rental, training, valves, industrial services and process, pipeline & umbilicals.

Eighteen senior managers at mechanical engineering group EnerMech have graduated from Robert Gordon University in Aberdeen.

The group have completed a unique Project Management graduate certificate devised by the university to meet the needs of the business which operates across the global oil and gas sector.

EnerMech, which employs 2300 people, invested £100,000 to develop the course as a means of supporting the personal and professional development of key staff.

The course focussed on Operations, Change, and Commercial and Strategic and was delivered through online tuition and attending three one-week blocks at the Aberdeen university.

EnerMech HR director, Shirley Smith, said: “We are delighted for all 18 EnerMech graduates who have put in a great deal of commitment and study hours to meet the exacting standards set by RGU on this innovative course.

“We made a significant investment to set up this course because it will greatly improve the skills and knowledge of mid-level to senior managers responsible for executing multi-million pound projects. It benefits the individual staff members personally and professionally, and also underlines our commitment as an efficient company which is genuinely supportive of staff development.”

The graduates are: Sohil Almukahal, Rovshan Bakhshiyev, Lee Cargill, Graeme Cook, Monique Fritz, Marc Gerrard, Dan Halse, Jason Harvey, Dave Heightley, Phil Jack, Daniel Johnston, Steve Jones, Szymon Kubicki, Sarah Macklin, Ahmed Yosry Mohamed, James Moore, Dariusz Roseger and Vince Yeo.