LR Invests in Senergy to Build Energy Sector Service
Lloyd’s Register (LR) announced a significant investment in global services company Senergy to create an industry-leading offering - from the reservoir to refinery and beyond.
The deal will see LR and Senergy provide a unique and comprehensive portfolio of services to the upstream sectors of exploration, production and transportation through to refinery and beyond.
The combined business will also provide life of field services from inception to decommissioning and offer unparalleled opportunities for technical and consulting staff to work with leaders in the industry by providing cutting edge services to customers.
London-headquartered LR provides independent assurance and expert advice to companies operating high-risk, capital-intensive assets in the energy and transportation sectors. Helping clients to ensure the quality of construction and operation of critical infrastructure – from ships and oil platforms to power plants and trains, it also provides business assurance services it helps companies manage their systems and risks across a wide range of sectors.
The company also provides a range of technical assurance and consulting services to the drilling industry through LR Energy – Drilling, created from the acquisitions of ModuSpec and West Engineering Services.
Formed in 2005, Senergy applies expertise and technology to assist the development and management of oil and gas fields and alternative energy projects. Its suite of core technical services centre on subsurface, well engineering and operations, site survey and geo-engineering, facilities development solutions and power engineering which are complemented by software and training products.
Headquartered in Aberdeen, Senergy has more than 650 employees and a further 100 associates, operating from offices in the U.K., Norway, Middle East, Malaysia, Australia, U.S. and Indonesia. Its turnover in the last financial year was £121 million, making the investment the largest the Lloyd’s Register Group has made to date.
Senergy will continue to operate as an independent company for three years, by which time LR will have acquired the balance of its shares. However, Senergy will become a member of the Lloyd’s Register Group and will work with LR to provide a broad service portfolio to the oil and gas and broader energy market. LR will have representation on the board of Senergy.
John Wishart, energy director at Lloyd’s Register said, “The investment in Senergy further expands our range of technical assurance services to the oil and gas sector, building on the complementary capabilities we have built up through the acquisitions of West Engineering, ModuSpec, ODS and Scandpower. The combined entity is now the industry’s leading provider in supporting safe operations in the discovery of new energy resources.”
Senergy group CEO James McCallum said, “Lloyd’s Register provides the perfect fit for our business. We strongly support the group’s mission to uphold the safety of life, property and the environment, and see a strong alignment in terms of objectives, culture, excellence and management style.”
LR was advised by PwC Corporate Finance in relation to its investment. Trowers and Hamlins acted as legal advisors to LR.Senergy was supported by HBJ Gately and Ernst & Young Corporate Finance in the transaction.