Global Updates Plans for 6 Recently Acquired Cos
The Global Energy Group has moved swiftly to enhance its service portfolio through the integration of six recently acquired companies with its existing operations.
Global acquired Caledonian Petroleum Services (CPS), Cooltime Engineering Services, Forfab, Labtech Services, OIL Engineering (OIL) and Sovereign Dimensional Survey (SDS) from the administrators of the Sovereign Oilfield Group on March 8 this year.
Today, just over six weeks on from completion of the deal, Global announced the formal integration strategy agreed by the group's board and management and the management of the six companies.
With the aim of ensuring a common focus on value to the customer and clarity of service, it has been decided that:
- the trading entities of Isleburn, OIL and Forfab will combine to create one company, continuing under the Isleburn brand
- CPS, Labtech, Cooltime and SDS will continue as separate trading entities and will operate under their existing brands
The expanded Isleburn organization, with annual revenues in excess of £50 Million, will establish the company as Scotland's largest manufacturer of bespoke products to a range of energy sector markets.
The merger of Isleburn and OIL will enhance the company's capability, capacity and flexibility in servicing the subsea oil and gas sector. With shared quayside facilities in the Highlands and Aberdeen, the company now offers more capacity to its key clients as well as increased vessel flexibility for mobilising equipment to subsea fields.
It is also anticipated that the combined strengths of the teams will enhance the company's capability to manufacture small and large topside equipment. OIL's track record in the topside market as well as Isleburn's legacy experience in building major UKCS Platforms through Nigg and Ardersier offers an excellent proposition in building topsides up to 3,000 tonnes.
Neil MacArthur, Chief Operating Officer of the newly formed company, said, "As Chief Operating Officer, I will lead the new Isleburn organization and will look forward to supporting the team in delivering a quality service across all our core markets.
"We expect a busy period in the subsea and topside market and it would have been a travesty if the industry had lost OIL's capacity. Reduced capacity in Scotland would be operationally and financially detrimental to proposed UKCS field developments and, along with operators, the ultimate losers would be the Scottish economy.
Of equal significance in the merger is the inclusion of Forfab -- the Dunfermline-based manufacturer of pre-assembled skid units and pressure vessels. Forfab will enhance Isleburn's growing reputation in the power and process sectors, adding additional capacity in Fife as well as transferable skills for Isleburn's existing core markets.
CPS, whose core market is topside oil and gas, will focus on supporting engineering contractors in opex-driven maintenance programs offshore. With its state-of-the-art exotic and carbon pipe shops, as well as structural capacity, in Dyce, CPS will continue to grow as a niche provider to the offshore market.
Bruce Gill, Managing Director of CPS, said, "Our focus is to offer a turnkey fabrication solution and our skill is being able to offer fast-track service that suits our clients' needs.
"We work call-of contracts along with OIL Engineering -- and on a practical level this will continue as driven by the customer's need. In the future we will work closer with Isleburn to ensure production is most cost-effective across the group -- and that our customers will benefit from this."
Labtech will continue with its brand and a strategy to re-establish itself in the standard and bespoke module market. The company will work closely with Cooltime Engineering to support refrigeration works within its modular equipment -- and over the coming months the two companies will strengthen their capabilities to deliver value to their customer base.
Dimensional control specialists SDS will continue to trade as normal whilst the GEG board continues to assess its capability and fit within the Group's strategy.
OIL and Forfab will become part of Isleburn officially on May 3, 2010, with rebranding of existing names phased-in over a one month period.