Newly Formed Global E&C Creates Brownfield Focused EPC Contractor
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20 March 2019Leading Oil and Gas Service provider, Global Energy Group (GEG) announced today that it has acquired a majority share of Apollo Offshore Engineering Ltd (Apollo).
As part of the deal, GEG has combined the brownfield engineering capability of Apollo with the proven capability of GEG’s Integrity and Construction (ICON) division, which is one of the leading brownfield modification and construction providers in the North Sea.
The combined business forms a proven integrated EPC contractor in the UK, named Global Engineering and Construction (Global E&C).
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.
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”.
GEG has a strong entrepreneurial culture which has been instilled in the business since inception. Global E&C will retain its dynamic roots and proactive culture which has been vitally important to the company’s success. Global E&C’s Managing Director, Derek Mitchell commented: ‘We are constantly looking at news ways of delivering work and have built a business on our ability to react to the evolving needs of our customers. We proactively seek opportunities where we can create value for our customers and shareholders, this investment is the beginning of our next chapter and we’re all excited about what Global E&C can offer the market. Importantly, Apollo’s values and culture are strongly aligned with ours – this was a particularly important component of why this investment was so attractive.