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News in brief

01 May 2020

Lamprell to consolidate operations to one yard

UAE-based Lamprell, a leading rig builder and provider of contracting services to the oil and gas and industries, says it will consolidate its operations within one yard for the time being as part of its overhead reduction programme.

“The Jebel Ali facility has been mothballed from January 2020. The Sharjah facility currently hosts some of the work on the Moray East project and will be closed upon its completion later this year. The Hamriyah yard is our largest facility and continues to operate, offering various expansion opportunities should the group require additional space,” a spokesman for Lamprell says.

These actions allow for the group to gradually grow fabrication volumes whilst significantly improving efficiency and reducing its cost base, it adds. The measures translate into an approximately $23 million reduction in overheads for 2020, of which over 90 per cent relates to cash overheads.

Subject to audit, the restructuring will result in a non-cash impairment charge of intangible and immovable assets in Sharjah of approximately $13.2 million in the 2019 financial statements. In 2020 there will be an estimated one-off charge of $7.5 million which relates to the demolition costs in Sharjah and staff termination costs.

Lamprell is also planning for low levels of critical-only capital expenditure at its facilities, with a total value below $10 million in 2020.

“We are operating in a period of unprecedented global uncertainty, focusing on the safety and sustainability of our operations and the health and wellbeing of our employees,” says Christopher McDonald, CEO of Lamprell. “Amidst industry-wide insecurity and distress, we continue to deliver our projects safely and reliably and we remain focused on strict financial discipline to sustain a healthy balance sheet and progress our strategy,” he adds.

Petrofac leads top 30 EPC contractors list

Petrofac, a leading international service provider to the oil and gas production and processing industry, has secured first place in the Refining and Petrochemicals Middle East magazine’s Top 30 EPC Contractors list for 2020.

The magazine ranked this year’s list primarily on the value and volume of projects companies have secured in the Middle East. It also took into account the impact of projects on the regional industry, people and the economy, along with other factors such as corporate social responsibility (CSR) activities. Outlining the ranking, the magazine recognised performance, highlighting: “Overall, another year of solid operational delivery and the company’s safety record was excellent.” Petrofac’s digitalisation programme was also picked out as a factor.

Doosan Vina delivers key desal equipment for Bahrain project

Leading South Korean engineering firm Doosan Heavy Industries and Construction Company said its Vietnamese unit Doosan Vina has successfully exported three huge desalination devices weighing over 2,000 tonnes to Bahrain.

The three devices – evaporator, final-wffect, and seawater deater – were delivered by Doosan Vina for the Bapco MED project as part of a deal inked with Samsung Engineering Construction Limited in 2018.

This equipment will be used to heat and desalinate seawater into distilled water at Bapco, says Doosan Heavy Industries and Construction Company.

Last month, Doosan Vina had exported the last 15 modules weighing a total of 2,508 tonnes to a refinery being developed by Samsung Engineering Company in the UAE.

The completion of the two major orders amid the Covid-19 pandemic represents a major success for the company, says a senior Doosan Vina official.

The orders also contributed to increasing the export turnover of central Quang Ngai province, where the company is located, he states.

“Made-in-Vietnam” products from Doosan Vina are now found in 35 nations around the world, he adds.

Pipeline specialist Stats Group expands Oman operations

Stats Group, a leading provider of specialist engineering services for the oil and gas sector, says it has boosted its presence in Oman with the opening of a new workshop, storage and testing facility in the capital Muscat.

The expansion comes after the pipeline technology specialist secured a two-year extension to a Master Services Agreement with Petroleum Development Oman (PDO) to provide pipeline isolation and hydrostatic testing services.

The Scotland-headquartered company also has operations in Edmonton in Canada, Houston in the US, Abu Dhabi and Qatar in the Middle East and Kuala Lumpur in Malaysia. Also in the Middle East, Stats has trebled the size of its operation in Abu Dhabi in a move to a larger workshop and office facility in the Mussafah district.

Middle East Director Angus Bowie says the PDO master service agreement is an important project for the company.