Scomi wins Algerian contract
Posted: 23 April 2007
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Malaysia ’s Scomi has secured oilfield services-related contracts with a combined value estimated at RM84 million from its Middle East region.
One of these contracts is a landmark contract in Algeria for the fabrication of mud packages which comprise solids control equipment and supporting base for land rigs with Enterprise Nationale des Travaux Aux Puits (ENTP), a drilling contractor owned by Sonatrach, which is the Algerian national oil company.
The contract is significant since it was with ENTP, which is the largest rig fleet owner in Algeria . This augurs well for Scomi’s potential business in this country and increased presence in the region.
“We have been in Algeria since 2000. This contract is a breakthrough and to-date, this is the biggest contract that we have secured in the country. We see great potentials there,” said Shah Hakim Zain Scomi’s Group CEO.
Meanwhile, in Turkmenistan , Scomi secured its maiden contract with independent oil producer Dragon Oil plc, for the provision of Drilling Fluids. The contract is testimony to the group’s marketing success in diversifying its customer base in Turkmenistan with Dragon Oil plc being Scomi’s second client in the country. With this contract, Scomi has captured more than 80% share of the offshore Drilling Fluids market in Turkmenistan . Scomi started its operations in Turkmenistan in Q4 2005, with significant capital investment for its integrated Drilling Fluids (DF) and Drilling Waste Management (DWM) services.
In the Caspian Sea , where our Turkmenistan-based operations are located, the environmental law is very strict, with zero discharge for all the drill cuttings. In dealing with such stringent requirement, Scomi has an established thermal plant in Turkmenistan to process all drill cuttings collected from offshore operations into environmentally friendly disposable waste. This is backed by Scomi’s technical capabilities in providing technological solutions that take into account the environmental impact. Further, with greater statutory requirements related to the environmental impact among its countries of operations today, such solutions are gaining increasing demand.
Commenting on Scomi’s increased presence in the MENAT region, Shah Hakim said, “Being an Asian company, we are very familiar with the business environment in both the Asian and nearby Middle East regions. Therefore, we are well-positioned to fully capitalise on the growth prospects from the expected increase in oil & gas activities in these regions as well as the increase in the size of the global DF and DWM market. In line with this, we are already seeing an improvement in the yield and day utilisation rate of our equipment in the region for 1st quarter of 2007 with average growth of 18% and 7% respectively compared to 1st quarter of 2006.”
It is estimated that for 2007, the global market share for DF and DWM is in excess of USD9 billion. According to Shah Hakim, Scomi’s strategy of focusing on organic growth within the group’s existing markets and business network is coming to fruition as proven by both the above contracts.
Scomi provides DF, DWM and distribution of oilfield products and services under its Oilfield Services business. Scomi is one of only two companies in the world that provides their own integrated DF and DWM solutions to customers globally.
Scomi’s business successes internationally are testimonies to the group’s expertise, technology and track record.
With a presence in 62 locations across 36 countries, Scomi is a global service provider in the energy industry involved in four core businesses: Oilfield Services; Energy & Logistics Engineering; Production Enhancement; and Energy Logistics. The Scomi group derives most of its business from its international operations, which is backed by over 45 years of experience in the industry servicing numerous local and multinational companies. |
