Petrofac and W&W Energy Services joined forces just over a year ago. The acquisition has offered Petrofac a route to the onshore market in the Permian and provided W&W Energy Services with an opportunity to take the organization to the next stage of growth.
It could be said that Petrofac and W&W Energy are two sides of the same coin. The companies and the services they offer complement one another and allow them to bring something new to the market.
John explains, “Petrofac’s engineering and project management expertise alongside its global track record, have helped the companies to secure and work on larger projects. W&W Energy meanwhile brings its local capabilities in facilities construction, pipeline installation, field maintenance, and hauling and logistics.”.
Bringing something new to the market
By marrying Petrofac’s engineering capability, with W&W’s field experience, the team can offer a one-stop-shop to clients. As Jason continues, W&W Energy’s value is in its diversity. “We do so many different things from facility construction to tank and equipment hauling – enabling us to bring real value to our clients.”
“For example, typically contractors will contract out the testing of pipelines to third parties, with any modifications and repairs being done separately. But we have our own team for this, allowing us to offer a seamless test and repair service. It’s just one of the things we do and it’s somewhat unique out here.”
Resilience and ready for what comes next
There is no denying it has been a tough year for the market. Jason explains, “The environment can change quickly. We have seen it again this year with the downturn. All you can do is adapt and roll with the punches. As the old saying goes; never waste a good crisis. We have used the opportunity to invest in our business so that we are in a strong position as the market returns.”
The fact that Jason and his family are local to the area was another reason that drew Petrofac to W&W Energy. Jason and his team bring local employee, client, and supply chain relationships, fostered over many years, to the partnership, as well as a unique understanding of the environment in which they work.
The Permian’s geology is unusual in comparison to other onshore fields – it contains several sub-basins, each with its own characteristics. This local understanding of the geological conditions is essential. “If we are looking at an opportunity or working in an area with a major rock formation, Jason will know,” continues John. “We are also working in more than one state, so Jason’s understanding of how requirements change across the region is invaluable.”
The coming together of these two complementary companies has, from Jason’s perspective, been “a smooth and frictionless transition”.
And, while the Permian Basin, like the industry around the world, has seen a downturn caused by the uncertainty of the pandemic, Petrofac and W&W Energy have been able to weather the storm together.
Despite the challenges, they have also won new clients this year. “We’re in different markets now from when the acquisition happened – we’ve gone from only working with upstream clients to working with midstream and even a little bit of downstream,” says Jason.
It is apparent that both companies are resilient and seek out opportunities. Petrofac has already used its engineering expertise to drive savings for clients, offering creative ways to re-purpose existing client inventory to support in-field improvements (link to case study).
Since the merger, W&W Energy has focused on enhancing its fleet, adding a large knuckle boom truck, and investing in new hydro testing equipment to support its pipeline integrity service. They have both stayed busy during the downturn.
“The field is already picking up, we are taking on larger projects and have the financial strength to be able to assist customers in the procurement and execution process,” says John.