MECHANICAL engineering group, EnerMech Ltd, has secured a £20 million ($32.9 million) contract to supply tools and rental equipment to Wood Group PSN. The five-year contract covers the UKCS and 12 jobs will be created by the Aberdeen company as a result of the contract win.
The deal includes the supply and rental of plant and equipment, including generators, air compressors and lifting and rigging equipment, the supply of hand tools and consumables and the repair, service, maintenance and storage of Wood Group PSN owned equipment.
EnerMech has invested £1.5 million ($2.5 million) on new air compressors, generators and tools and spent a further £400,000 on a new workshop at their Scottish headquarters to service the contract.
Doug Duguid, managing director of EnerMech, said his company’s commitment to investing significant capital in new equipment and site facilities was a major driver in securing the contract, the largest in the firm’s three-year history.
Mr Duguid said: “Our policy of continual investment in new equipment, technologies and in the latest interactive web-based systems which give clients 24-7 visibility of their assets, gives us a clear advantage over competitors.
“We have completed some ad-hoc work on behalf of Wood Group in the past but this deal signals what I hope will be the start of a long and mutually beneficial relationship, which should offer up further opportunities for both companies.
“Winning this award is a clear indication that Wood Group PSN trusts us to provide a high quality service, delivered by first class personnel and backed up with our extensive on-site facilities which are second to none in the north east of Scotland.”
The Wood Group PSN success follows other major deals announced recently by EnerMech, including an £8.2 million ($13.5 million)crane operation and maintenance contract with BP Exploration in Azerbaijan, a £7.5 million ($12.3 million) contract from Cape Industrial Services to provide plant and equipment support in the Dutch North Sea and £1 million plus deals with Acergy/Subsea 7 and Petrofac.
Note to Editors
EnerMech Ltd was formed in April 2008.
The company specialises in the supply, maintenance and engineering of cranes, lifting, valves and hydraulic equipment, equipment rental and the provision of training and specialist personnel to the energy industry.
With the acquisition of Specialist Maintenance Services Ltd and A1 Safety Training Consultants Ltd, EnerMech is now a leading international provider of offshore crane and lifting operations, crane personnel and safety training. EnerMech also has a significant presence in Norway following the acquisition of Bjørge ASA’s crane division in October 2008.
In April 2009, EnerMech extended its presence in the Middle East with the acquisition of UAE free zone companies Pavitt Energy Limited and Scotia Oilfield Trading FZE which has since been integrated in to the EnerMech group. Investment totaling £5.1 million ($7.5M) has been made in equipment stock rental, improvements at our bases in Ras al-Khaimah and Doha, and plans have been drawn up to build a new £3 million facility in Jebil Ali, Dubai which will be ready in 2012.
In April 2010, EnerMech acquired Aberdeen based hydraulic engineering specialist Norson Power in an £11 million deal. Norson Power provides hydraulic pipework installation and designs and manufactures hydraulic equipment for the oil, gas and marine industries.
EnerMech recently agreed a £24 million funding package with Lloyds Banking Group and, together with private equity provided by Lime Rock Partners and shareholder finance, has in place £40 million to support organic growth and further acquisitions.
In August 2010, EnerMech invested £4 million to acquire its 16 acre headquarter site in Aberdeen. A further £840,000 is being spent on refurbishments and the construction of new workshops, while another £2 million has been invested in setting up a new Valve Care division which will target the valve supply, testing, inspection and maintenance sector.
EnerMech employs 750 staff at its Aberdeen headquarters and bases in Great Yarmouth, Stavanger, Dubai, Qatar, Ras al-Khaimah, Singapore, Indonesia, China, Ghana, South Africa and Perth, Australia.
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