Global to merge Sovereign divisions

GLOBAL Energy Group is to merge two of the former Sovereign Oilfield Group subsidiaries it bought last month with one of its own existing businesses.

Forfab and Oil Engineering will be rolled into the Isleburn brand, which will have a combined turnover of more than 50 million and which Inverness-based Global believes will be Scotland's largest manufacturer of bespoke products for the energy sector.

The other businesses bought by Global – Caledonian Petroleum Services, Cooltime Engineering Services, Labtech Services and Sovereign Dimensional Survey – will trade under their existing brands.

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Neil MacArthur, Isleburn's chief operating officer, said: "We expect a busy period in the subsea and topside market and it would have been a travesty if the industry had lost Oil Engineering's capacity."

"Reduced capacity in Scotland would be detrimental to proposed UKCS field developments and the ultimate losers would be the Scottish economy."

Sovereign folded in February after struggling with debt.