Global E&C wins brownfield contract with EnQuest in North Sea

A north-east energy service firm has won a multi-million-pound deal to carry out construction work on a number of UK North Sea platforms and vessels operated by EnQuest.

Global Engineering & Construction (E&C) said the deal covered all construction-related activities on the Thistle, Heather, Magnus, Northern Producer and EnQuest Producer installations.

The contract runs for an initial three years and includes two, one-year extensions options. It is understood to be worth an eight-figure sum.

A spokeswoman for Global E&C said the deal with EnQuest would safeguard more than 30 jobs at the company, which is in the process of hiring another 60 people to help it fulfil a number of recent contract wins.

Global E&C has also inked a framework agreement with EnQuest, which could lead to the award of brownfield engineering, modifications and repair services contracts.

The announcement comes a month after Global E&C revealed it had bagged a brownfield services deal worth more than £100m with Apache in the UK.

The Apache contract was the biggest deal in the history of Global E&C’s parent company, Inverness-headquartered Global Energy Group (GEG).

Global E&C was launched earlier this year when GEG bought a majority stake in Apollo Offshore Engineering.

GEG combined its own integrity and construction wing with Apollo’s brownfield engineering division to create the subsidiary, which is headquartered in Aberdeen and has 900 employees.

Global E&C, in a former guise, has a track record of working with EnQuest. It supported the London-listed oil firm with repair orders over the last five years. This involved fixing or replacing pipes and structural work on topside modules.

EnQuest’s Thistle platform was shut down and evacuated last week after a subsea inspection uncovered an issue with a “support element” on a redundant subsea storage tank.

It is understood the recent shutdown was unrelated to Global E&C’s recent work with EnQuest.

On the new contract award, Global E&C managing director Derek Mitchell said: “We’re delighted to continue supporting EnQuest in the North Sea and this award is testament to our strong delivery over the years and the trust which has been built between our businesses.

“It’s fantastic to have been recognised in this way and are looking forward to continuing to build on our track record of safely and efficiently executing brownfield scopes for EnQuest.”

Matt Abraham, supply chain director at industry body Oil and Gas UK, said: “Innovative commercial arrangements such as the relationship between EnQuest and Global E&C help unlock North Sea activity in a safe and sustainable way, and drive improvements in performance.”

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