The cautious global outlook that characterised the oil and gas industry for the past four years has driven a renaissance for established plant. Severn’s heritage in advanced engineering services for existing valve populations puts it at the forefront of growth in this arena. Since 2014, our established plant division Severn Unival has enjoyed exponential growth of 400%, putting its annual order book at £75m.
Divisional managing director Colin Findlay says leading operators are changing their approach to valve management. The depressed oil price drove a focus on operational efficiency, leading to a wave of new investment to improve the performance of existing assets. Recognising the level of dedicated engineering skill and expertise required to optimise control and choke valve performance, many operators have held competitive technical tenders to outsource this element of plant management efficiently. As the market picks up, this activity is accelerating with operators seeking to maximise performance and productivity.
“Technology is the core driver of efficient and reliable plant operations,” Colin explains. “Following the volatility of 2014 and the prolonged downturn experienced since, oil and gas operators have been keen to find stability and certainty. Investing in existing plant is the most prudent way to achieve this, and operators that continue with this approach alongside investment in new projects will have much surer foundations as the market begins to pick up again.”