LR Senergy has been awarded a number of contracts worth a combined US$7 million in the Middle East, Europe and Asia.
The new contracts include work with Abu Dhabi Marine Operating Co. (ADMA-OPCO), the Kuwait Energy Co. and Dragon Oil
These cover work scopes ranging from well engineering to geomechanics, in areas including the Middle East and the Caspian Sea.
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.
Mustard is an Upper Jurassic submarine fan prospect at a depth around 8000ft on the north-eastern side of the East Solan Basin in water depth of approximately 150m. Mustard is located some 15km from the Solan field facilities, which have been designed to enable tieback of future area discoveries.
LR is also working with Gas Natural Fenosa in Spain, following on from a recent gas storage project offshore Spain for a different client. The organization 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.
LR says the new work comes as the company 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 centered 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 firm says.
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.
Steve Gilbert, Vice President of Operations with LR Senergy, said that like many energy focused organizations 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 organizations to be more technically independent and this is where our proven delivery of impartial operating experience can be beneficial.”
LR Senergy’s North-east of Scotland offices will come together to co-locate 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.