11 November 2008
Sharjah-based offshore rig building company Maritime Industrial Service is planning a major expansion drive to boost its current production capacity, said a senior company executive.
The company, whose performance has not been affected by the current financial crisis, is looking for more than 200,000 square metres of land in various locations across the UAE.
"Our major challenge at the moment is to find yard space to improve our production capacity and to cater to the growing demand for new builds," Kevin Hudson, the new CEO, told Emirates Business.
"We are already in advanced talks to acquire some of the existing smaller yards. We are also on the look out in all other emirates and based on our current and short-term needs, we would need space about the same size as that of our Sharjah yard."
The company currently has a backlog of orders worth $1 billion (Dh3.6bn) that will help it during the current financial turmoil and also assure it of positive revenue growth by year-end.
The first quarter of 2008 saw a huge demand for offshore drilling rigs, spurred by the increasing global demand for oil, leading to further shortage of yard space at the MIS yard in Sharjah.
This year alone, MIS took orders in excess of $500 million and with its current order book for oil rigs full until 2010, the company is in the process of opening its order book for 2011.
Hudson said Maritime Industrial Service was positioning itself as a leading and reliable rig building company in the Middle East.
"We are beginning to win the confidence of traditional companies in the oil rig business and we have received numerous inquiries about our services. We want to put in place proper structures that will enable us to satisfy clients," said Hudson.
Recently, MIS received its largest single order for the construction of two jack-up drilling rigs from Bahrain-based Mena drill's sponsors, First Energy Bank BSC.
The total value of the rig packages will be in excess of $400m, including tools, drill pipe, construction oversight and other associated costs.
The rigs represent the anchor investment in the Mena drill fleet and are to be built according to the Super M2 designs of Friede and Goldman of Houston.
The first rig is set for delivery on September 30, 2010, and delivery of the second rig will follow three months later on December 31.
The deal brings a total of four major rig-building deals signed by MIS since the beginning of this year. The company will next week complete its first jack-up drilling rig, the SeaWolf Oritsetimeyin, whose construction began in 2007.
MIS hopes to capitalise on the acute capacity shortage in the traditional international shipyards in areas such as Singapore, China and the United States Gulf Coast to ensure enough space for its operations in the region.
The main MIS yard in Sharjah measures about 200,000 square metres. The company has a smaller yard in Sharjah that is 30,000 sq m, another one in Saudi Arabia spread over 90,000 sq m and a 15,000 sq m one in Kuwait.
The Maritime Industrial Service yard in Sharjah is currently building a number of drilling rigs for customers in Africa, Europe and Asia, and undertaking major rig refurbishment projects for several leading international drilling contractors.
Sharjah-based offshore rig building company Maritime Industrial Service is planning a major expansion drive to boost its current production capacity, said a senior company executive.
The company, whose performance has not been affected by the current financial crisis, is looking for more than 200,000 square metres of land in various locations across the UAE.
"Our major challenge at the moment is to find yard space to improve our production capacity and to cater to the growing demand for new builds," Kevin Hudson, the new CEO, told Emirates Business.
"We are already in advanced talks to acquire some of the existing smaller yards. We are also on the look out in all other emirates and based on our current and short-term needs, we would need space about the same size as that of our Sharjah yard."
The company currently has a backlog of orders worth $1 billion (Dh3.6bn) that will help it during the current financial turmoil and also assure it of positive revenue growth by year-end.
The first quarter of 2008 saw a huge demand for offshore drilling rigs, spurred by the increasing global demand for oil, leading to further shortage of yard space at the MIS yard in Sharjah.
This year alone, MIS took orders in excess of $500 million and with its current order book for oil rigs full until 2010, the company is in the process of opening its order book for 2011.
Hudson said Maritime Industrial Service was positioning itself as a leading and reliable rig building company in the Middle East.
"We are beginning to win the confidence of traditional companies in the oil rig business and we have received numerous inquiries about our services. We want to put in place proper structures that will enable us to satisfy clients," said Hudson.
Recently, MIS received its largest single order for the construction of two jack-up drilling rigs from Bahrain-based Mena drill's sponsors, First Energy Bank BSC.
The total value of the rig packages will be in excess of $400m, including tools, drill pipe, construction oversight and other associated costs.
The rigs represent the anchor investment in the Mena drill fleet and are to be built according to the Super M2 designs of Friede and Goldman of Houston.
The first rig is set for delivery on September 30, 2010, and delivery of the second rig will follow three months later on December 31.
The deal brings a total of four major rig-building deals signed by MIS since the beginning of this year. The company will next week complete its first jack-up drilling rig, the SeaWolf Oritsetimeyin, whose construction began in 2007.
MIS hopes to capitalise on the acute capacity shortage in the traditional international shipyards in areas such as Singapore, China and the United States Gulf Coast to ensure enough space for its operations in the region.
The main MIS yard in Sharjah measures about 200,000 square metres. The company has a smaller yard in Sharjah that is 30,000 sq m, another one in Saudi Arabia spread over 90,000 sq m and a 15,000 sq m one in Kuwait.
The Maritime Industrial Service yard in Sharjah is currently building a number of drilling rigs for customers in Africa, Europe and Asia, and undertaking major rig refurbishment projects for several leading international drilling contractors.
By Ashaba K Abdul Basti
© Emirates Business 24/7 2008
