Energy services company LR Senergy has been awarded a number of contracts worth a combined US$7 million in the Middle East, Europe and Asia as it continues to adapt to the difficult and changing market conditions.
While the Aberdeen-headquartered firm has always provided its services globally, the majority of its work has historically taken place in Europe and Africa – a large proportion of which was centred in the North Sea. That picture is now changing with a growing portfolio of contracts being secured in the Middle East and Asia Pacific.
The current low oil price and the comparatively high operating costs associated with the North Sea’s mature basin have impacted the market in the UK. As a result, LR Senergy has widened its focus to other regions that are less affected. This is the result of a longer term strategy within the company to diversify not only in regard to its product offering but also in its geographical areas of activity.
Recent wins include contracts with the Abu Dhabi Marine Operating Company (ADMA-OPCO) and other significant deals with the Kuwait Energy Company and Dragon Oil. These cover work scopes ranging from well engineering to geomechanics, in areas as diverse as the Middle East and the Caspian Sea.
These awards build on ongoing operations in disciplines such as survey and geoengineering, production optimisation, reservoir services, facilities engineering and alternative energy solutions. The company is also delivering wells project management for Dana Gas on its Zora Gas Field Development Project in the Middle East as well as supporting large subsurface projects in Kuwait.
In addition to the Middle East, LR Senergy has been contracted by Chrysaor to drill the ‘Mustard’ exploration well west of Shetland and has secured a significant contract with JX Nippon to project manage a deepwater exploration well west of Shetland in 2016. The company continues to work closely with the UK HSE to provide well engineering and integrity expertise in the assessment of UK onshore gas storage sites under industry guidelines, after its contract was renewed for a second time. It is also working with Gas Natural Fenosa in Spain, following on from a recent gas storage project offshore Spain for a different client. The organisation has recently begun work on its first project in Greece, with a reservoir engineering contract in Athens, on behalf of Energean.
Another key growth region for the company is Asia Pacific where LR Senergy is providing full wells project management services for VietGazProm, which is drilling two deepwater wells off the coast of Vietnam. In Indonesia it has been contracted to project manage the drilling of an offshore exploration well on behalf of M3nergy.
Steve Gilbert, Vice President of Operations with LR Senergy, said that like many energy focused organisations operating in today’s business climate, the company has had to make some difficult choices and closely examine its strategy.
“We have seen clear and dramatic movement in the market in recent months with the majority of oil and gas companies required to review their business models, ourselves included,” he said.
“This has required us to adjust our costs, make changes to our workforce and pursue business in regions less affected by the current oil price pressure and we will continue to respond to these challenging market conditions.
“We have seen a growing desire within some areas for organisations to be more technically independent and this is where our proven delivery of impartial operating experience can be beneficial.
“As a global organisation with offices and clients across the world we are able to provide our services wherever they are required. We continue to have a significant presence in the North Sea and are working to expand into other areas which can be serviced from our hubs in Kuala Lumpur, Dubai and Abu Dhabi.
“While we look forward to consolidating our geographical reach, we remain fully committed to the energy industry in the North Sea and it is very pleasing to have secured two significant projects west of Shetland. Our presence in the North-east of Scotland – with offices in Aberdeen, Alford and Banchory – has played a key role in the successes we have enjoyed to date and the UK will continue to be a focal point for our operations.”
LR Senergy’s North-east of Scotland offices will come together to colocate with its Lloyd’s Register (LR) colleagues in a purpose-built facility in the Prime Four business park at Kingswells in 2017. In September 2013 LR made its largest ever investment in Senergy to expand its range of technical assurance and consulting services to the oil and gas sector.