The contract extends an original five-year contract with BP Exploration (Caspian Sea) Ltd valued at approximately $50m (£33m) and includes a further two one-year options valued at $10m (£6.4m) per annum

Oil and gas engineering firm EnerMech has secured a 12-month extension on a crane and lifting contract with BP for its Caspian Sea operations with options to extend potentially valuing the contract at $30 million (£19.2 million).

The contract extends an original five-year agreement with BP Exploration (Caspian Sea) Ltd valued at approximately $50 million (£33 million).

EnerMech said the contract extends the original agreement to provide crane operation and maintenance personnel, materials, equipment, engineering and mechanical handling services.

The contract extension, including options for two one-year extensions, covers all seven BP-operated platforms in the Caspian Sea and 16 offshore pedestal cranes operating in the Chirag, West Chirag, Central Azeri, West Azeri, East Azeri and deepwater Gunashli platforms, as well as the Shah Deniz gas development project.

EnerMech said the 12-month extension agreement is worth a further $10 million (£6.5 million) per annum, and if all three year options are agreed values the contract at $30 million (£19.2 million).

EnerMech cranes and lifting director, John Morrison, said: “BP is a valued client and the award of this contract extension underlines our credentials in providing frontline cranes and lifting services on major international projects.

“Having a strong local infrastructure in place, allows us to provide a tailor-made integrated package of our seven business lines, which complement the core cranes and lifting services which BP require.”

EnerMech, whose parent operation is based in Jersey, was established in 2008 and was supported by Lloyds Bank Commercial Banking, who initially invested £24 million in the group, increasing its support to £44 million in 2011 and then to £60 million in April 2013.

The company also secured £25 million of new investment in 2012 from long-term private equity backer, Lime Rock Partners.

EnerMech now employs 2400 staff and operated across more 20 countries and provides seven main business lines to the oil and gas sector, including cranes and lifting, hydraulics, equipment rental, training, valves, industrial services and process, pipeline & umbilicals.

Source: www.dailyrecord.co.uk

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