Global Energy Group, the provider of contract services to the oil and gas industry, has bought a majority stake in Aberdeen-based Apollo Offshore Engineering, forming a new contractor firm.
The new company will be named Global Engineering and Construction (E&C), combining Apollo’s brownfield engineering capability with Global’s integrity and construction (ICON) division.
Global E&C will have a headcount of around 900 and will be an engineering procurement and construction contractor exclusively focused on services for mature fields in the North Sea.
The depth of Global E&C’s capability means it is uniquely positioned to deliver improved efficiency and more cost effective brownfield solutions for oil & gas operators across the North Sea.
"Global E&C is uniquely positioned to deliver improved efficiency and more cost effective brownfield solutions for oil & gas operators across the North Sea," claimed a press release from the company.
With a combined headcount of circa 900 personnel, Global E&C will be the only fully integrated EPC contractor in the UK oil & gas market that is exclusively focused on the brownfield OPEX space.
As part of the acquisition, Apollo’s consultancy business will continue to operate under the existing brand and will offer technically led engineering services. Apollo will focus on Front End and Through Life Consultancy, across multiple end markets.
Roy MacGregor, GEG’s Founder and Chairman, said: ‘Over the years, the legacy ICON division of Global Energy Group has matured into being a recognised construction led contractor within the UKCS, having secured major contracts with several operators. However, it has become more apparent recently that in order for us to add enhanced value to our customers, in a continually challenging market, that we need to be able to offer something different.
He went on to add: ‘Global E&C will form a standalone entity and will be managed separately from the broader Global Energy Group. Global E&C’s management team aims to change the EPC competitive landscape in the UK North Sea by focusing on what our customers need to drive efficiency across an, often, aging asset portfolio. Global E&C’s organisational design has been developed specifically to meet these brownfield challenges. Under the new entity, Global E&C will continue to challenge how things are done, will focus on driving new ways of working and will aim to become further aligned with our customers’ value drivers.’
Apollos Managing Director, Ryan Menzies, commented: ‘“The investment of Global Energy Group is a significant measure of their confidence in the engineering capability of Apollo. The combined engineering expertise of Apollo and the construction competence of the legacy Global ICON division provides clients with a strong alternative to traditional providers in the brownfield modifications arena under the newly formed Global E&C entity.
Additionally, the Apollo identity and brand remains, allowing the Apollo team to focus on Front End Engineering and Through Life Consultancy for oil and gas, marine, drilling, renewables and technical software. As such, being part of Global Energy Group opens up a huge opportunity for Apollo across the multiple markets that GEG are currently active in. This is indeed a very exciting time for Apollo and we are looking forward to being a strong and integral member of the Global Energy Group family”.