EnerMech Snaps Up Pavitt Energy, Scotia Oilfield Trading in UAE

Aberdeen-based EnerMech has acquired United Arab Emirates free zone companies Pavitt Energy Limited and Scotia Oilfield Trading FZE.

Founded in 2003, Pavitt Energy is based in the Jebel Ali Free Zone, Dubai, and specializes in large equipment rental and the supply of a personnel for a wide range of onshore and offshore oil, gas, construction and drilling projects. Equipment repair company, Scotia Oilfield Trading, is based in the northern UAE emirate of Ras al-Khaimah.

EnerMech revealed the combined purchase price was in the region of £3.4 million ($5 million) and the company will invest a further £5.1 million ($7.5 million) in additional equipment rental stock and building a new 60,000 sq ft facility in Ras al-Khaimah. The existing Jebel Ali base will be retained and plans are in place to open a new facility in Doha, Qatar.

Pavitt and Scotia employ a total of 50 staff and have existing contracts in a number of key regions, including Dubai, Abu Dhabi, Qatar and Kazakhstan.

The double acquisition provides EnerMech with an immediate presence in the Middle East through established and respected companies and managing director Doug Duguid has forecast Middle East turnover could grow to up to $80 million within a five year period.

Mr. Duguid said, "There are fantastic prospects for us in Abu Dhabi, Qatar and Saudi Arabia and we will use the experience and combined strengths of Pavitt and Scotia as a springboard to access those opportunities.

"The acquisitions also give us immediate access to an established infrastructure and a healthy customer base which can be quickly developed. We will invest heavily in expanding the existing rental feet and building large workshops, which are capable of rolling out our cranes, valves, pumping equipment and other service lines.

"Strategically the Middle East is a key area for us as we transform EnerMech in to a company with an eastern hemisphere presence. Our five year objective is to develop a substantial Middle East business which is turning over between $75-$80 million."

Mr. Duguid revealed the company are currently working on a potential acquisition in Asia and hope to make a further announcement in the next few months.

Pavitt Energy director and co-owner Charlie Topp, who is also owner of Scotia Oilfield Trading, will take on a new role as EnerMech's Middle East regional director while Pavitt managing director and shareholder Bill Lutton will leave the company.

During a 27 year career in the oil and gas industry Mr. Topp has held senior positions with major operators and service companies in the North Sea, Saudi Arabia, Malaysia and the UAE, including a 10 year spell as regional manager for BJ Services in Dubai.

Mr. Topp said, "This is an excellent development for everyone working for Pavitt and Scotia and I am delighted to be joining an ambitious service-orientated company with a clear strategy for large scale international expansion.

"EnerMech are ready to make a substantial capital investment which will take the existing business to a new level and give us the opportunity to really grow the business in to a significant player in the Middle East mechanical services sector."