Monday 1 September 2014
 
»
 
»
Story

UK's EnerMech buys 2 ME firms for $12.5m

Dubai, April 9, 2009

UK-based EnerMech has acquired two United Arab Emirates free zone companies Pavitt Energy Limited and Scotia Oilfield Trading for $12.5  million.

Founded in 2003, Pavitt Energy is based in the Jebel Ali Free Zone, Dubai, and specialises 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 Ras al-Khaimah.

EnerMech revealed that 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.

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 acquisitions also give us immediate access to an established infrastructure and a healthy customer base which can be quickly developed,' said EnerMech managing director Doug Duguid.

'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.”

Duguid revealed that the company are currently working on a potential acquisition in Asia and hoped 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 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.-TradeArabia News Service




Tags: EnerMech | Pavitt Energy | Scotia Oilfield Trading |

More Energy, Oil & Gas Stories

calendarCalendar of Events

Ads