A former senior executive at Global Energy Group (GEG) has joined forces with the firm again in a joint-venture aimed at creating the “strongest offshore drilling inspection company in the North Sea.”
Inverness-headquartered (GEG) announced that Aberdeen-based 3rd Momentum’s survey, rope and hose businesses were combining with its own inspection and wire ropes division, Reel, to form Rig Surveys Group (RSG).
The new group, said to have a “combined turnover in excess of £12 million and a workforce of nearly 100,” will be headed by 3rd Momentum founder Russell Ritchie.
Mr Ritchie founded Reel Group in Aberdeen and sold the business to Roy MacGregor’s GEG more than a decade ago, after which he spent a spell as one of the group’s senior executives.
GEG declined to disclose any financial details of the latest deal, but said it would jointly own RSG with 3rd Momentum, which is part of Aberdeen-based Challenger Energy, also owned by Mr Ritchie.
The companies from 3rd Momentum involved in the joint-venture will be Rig Surveys, Evolution Ropes and Evolution Hose. It is understood the new group will have premises in Aberdeen.
Mr MacGregor said: “The combination of these businesses together with the expertise that it’s people bring will provide our clients with the smart solutions and added value they require.
“Momentum’s passion for great service and customer focus is a great fit for the Global Energy Group culture and I look forward to what the future holds for the new business.”
GEG said the joint venture was a “natural step” for both business, and RSG would work in international markets as well as in the North Sea.
The announcement of the new venture came less than a fortnight after GEG announced it had acquired offshore maintenance, inspection, lifting and rope access company Axiom NDT, which had been placed in administration.
Axiom NDT had a workforce of 17 across operations in Aberdeen and Glasgow.
Reel Group, which specialised in offshore rope access and wire rope sales was among the early acquisitions as Highland entrepreneur Roy MacGregor began building the Global Energy Group into a major services provider to the oil and gas industry.
Reel, founded by Russel Ritchie, became part of GEG in 2008, three years after the Inverness-based group’s launch. He continued to head it as a division of the rapidly-expanding group until he left the business four years later.
Mr Ritchie went on to found a number of new ventures, including specialist steel wire ropes company Evolution Ropes, based at Wellheads Crescent, in Dyce.
GEG said this week that a “strong, firm business relationship” had always remained between its chairman, Mr MacGregor, and Mr Ritchie.
Commenting on the announcement of the new Rig Surveys Group joint-venture with GEG, Mr Ritchie said: “Both businesses are aligned, they are people focused both in terms of our staff and our clients and the fit is perfect – the confidence, trust and enthusiasm we have for the market is shared.”
Earlier this year GEG split in two, with about 40% of the business becoming subsidiaries of a new company owned by two of Mr MacGregor’s sons and a Japanese investor.
The demerged operations, employing about 1,500 people, are now under the umbrella of Envoy & Partners, which is also headquartered in the Highland Capital and led by managing partner Iain MacGregor. Both GEG and Envoy have announced several acquisitions since.