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.”

MEC Regional Director Steve Jones commenced his career in the Oil and Gas Industry in 1998 with PSL Group, and from 2003 with PSL Energy Services, as a Project Engineer leading site operations in the UK, continental Europe, and the Middle East and Caspian, eventually relocating to Dubai in 2006 as Middle East Operations Manager.

Following the acquisition of PSL Energy Services, in 2007, Steve relocated to Singapore as Halliburton’s Regional Operations Manager for Pipeline and Process Services.

Steve joined EnerMech in 2010 in Singapore as General Manager for the Asia region. In July 2017, he relocated from Asia to Baku, Azerbaijan to assume the role of General Manager - Caspian. In early 2018, Steve was promoted to his current position as MEC Regional Director.

He is a graduate of the EnerMech Project Management Development program in conjunction with Robert Gordon University Aberdeen and went on to graduate from RGU with a BA (Hons) in Business Management in December 2017. 

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.”

Technical Director  Colin Smith has over 35 years’ industry experience in Senior Technical, Engineering, Project and Senior Management Positions, working for both operators and contractors.  

A chartered engineer and Fellow of the Institute of Electrical Engineers, Colin is a recognised Electrical and Instrument Technical Authority and is responsible for the growth, competence, assurance and integrity of our Electrical and Instrumentation division globally.  Colin has a wealth of asset management experience having held asset management roles for many years.  Prior to joining EnerMech, Colin was an Engineering Consultant and Project Manager at an international energy company. 

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.”

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.