Clough Acquires Specialist Canadian EPCM Engineering Firm - Enercore

14 October 2015

Johannesburg, 14 October 2015 – Clough, the Australian based oil & gas engineering and construction company and a wholly owned subsidiary of Murray & Roberts, has announced the acquisition of Enercore Projects Limited (“Enercore”), a privately owned engineering services company headquartered in Calgary, Canada. The purchase price is linked to earnings and will be paid between years three and five from the effective date and is capped at CAD$10 million. The transaction will establish Clough’s Canadian Engineering, Procurement and Construction (“EPC”) project delivery arm.

Enercore specialises in the provision of Engineering, Procurement and Construction Management (“EPCM”) services to the Canadian oil and gas sector.  Established in 2006, the group employs 70 engineering and technical personnel, and operates in the Canadian conventional oil & gas and oil sands sectors.

Henry Laas, Group Chief Executive of Murray & Roberts, comments: “The acquisition builds on Clough’s North American presence, which commenced in the USA in 2014 with the establishment of a Clough engineering team in Houston, Texas; and the acquisition of liquefied natural gas (“LNG”) engineering and consulting specialist CH-IV in Baltimore, Maryland. This acquisition further supports Murray & Roberts' strategy to grow its engineering capability in the business platforms that are focused on the natural resources market sectors, which is being pursued through small bolt-on acquisitions."

Clough Enercore will form part of Clough’s global network of engineering centres which draw on state-of-the-art 3D design, Cloud-based technology and over 1000 in-house engineers, including engineering teams in Canada and the USA. This engineering network model has been structured to optimise utilisation and reduce the cost of high quality engineering services for oil and gas clients worldwide supported by a strong regional presence.

Clough’s CEO and Managing Director Kevin Gallagher said the acquisition aligned with the company’s international expansion strategy.

“When Clough looks to acquire a business, we search for attributes that represent a strong strategic and cultural fit. Enercore is a company that follows a production-focused approach to maximise the value of our clients’ assets across the entire asset lifecycle, which fits well with Clough’s strategy to provide a significantly strengthened project service offering to Canadian oil and gas clients. Importantly, Enercore is passionate about its values; which align strongly with Clough’s values.”

Greg Roemer, President, Clough Enercore comments, “I’m excited about the opportunities the Clough Enercore business will bring. As part of the Clough group, Clough Enercore will have access to larger scopes of work in the Canadian oil and gas market, while supporting Clough’s engineering projects globally.  We will draw on Clough’s strong engineering, construction and project management capabilities to offer a comprehensive suite of EPC services while maintaining our commitment to providing fit-for-purpose, high-quality EPCM and engineering services to our existing client base.”

Despite subdued oil and gas market conditions globally, the North American oil and gas industry is forecast to continue to grow; buoyed by a significant pipeline of projects in the LNG sector. The USA and Canada have the highest planned LNG capital expenditures globally over the next five years, with more than US$300 billion of proposed projects, which is anticipated to increase liquefaction capacity significantly in the two countries.

Ends

For further information contact:

Ed Jardim
Murray & Roberts Group
Group Communications Executive
Mobile     +27 (0) 83 357 6282
E-mail:    ed.jardim@murrob.com

About Clough Enercore

Clough Enercore provides integrated engineering, procurement and construction solutions for Canadian greenfield and brownfield oil & gas projects.  The group specialises in the LNG, heavy oil/oil sands, conventional upstream, midstream & waste processing and downstream oil & gas sectors. Clough Enercore follows a production-focused approach, working across the entire asset lifecycle, to reduce risk and optimise safety, cost and productivity performance throughout the life of a project. 

Clough Enercore’s solutions are supported by a global network of engineering and operating centres, highly specialised, cost-optimised engineering methods and innovative technology, underpinned by Clough’s 96-year track record in serving large and logistically challenging projects.

More information is available at www.enercoreprojects.com

About Murray & Roberts

Murray & Roberts is a leading engineering and construction services group of companies. It has predominantly delivered infrastructure projects throughout South and Southern Africa for more than 110 years, and is today recognised as an international engineering and construction group. Murray & Roberts is a group of world-class companies and brands aligned to the same purpose and vision, and guided by the same set of values.

The Group offers engineering, procurement, construction, commissioning, operations and maintenance services in the oil & gas, underground mining, power & water as well as the civil infrastructure and building markets.

Murray & Roberts is headquartered in Johannesburg, South Africa, and is listed on the JSE Limited. It has offices in South Africa, Namibia, Botswana, Mozambique, Zambia and Ghana, the United Arab Emirates, Australia and South Korea, Scotland, Canada, the USA and Chile.

More information is available at www.murrob.com

About Clough

Clough works with some of the world’s largest energy and resources companies to engineer, construct, commission and maintain a comprehensive range of facilities for energy, chemical, infrastructure, mining and mineral projects. The company’s full project lifecycle delivery model reduces risk and optimises safety, productivity and cost across every phase of a project. 

Established in 1919, Clough’s services are underpinned by a dedication to project delivery excellence that has spanned over 90 years.  Today the company’s operations cover Australia, Asia, Africa, Papua New Guinea, UK, USA and now Canada.

Clough is a wholly-owned subsidiary of Murray & Roberts, South Africa’s leading engineering and construction services Group.

Backed by an experienced leadership team, sophisticated project management systems, and Murray & Roberts’ vast global resources, Clough is committed to safety, sustainable development and the wellbeing of the people it employs, as well as of communities and environments in which it operates.

More information is available at www.clough.com.au

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