Pipe solutions PROJECT PARTNERS Seamless pipe plants
Pipe solutions Written by Sarah Arnold Produced by Heykel Ouni 3
JESCO has the expertise to meet the high demand for innovative pipe solutions within the GCC
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ubail Energy Services Company (JESCO) was founded in 2006 to cope with the demand for seamless pipes within the oil and gas industries. The idea behind this company was first considered 30 years ago within the GCC, but the implementation did not begin until 2003. As the first company of its kind in the Middle East, JESCO produces two types of seamless pipes; OCTG (oil country tubular goods) and line pipe. Line pipes are those used to transfer oil and gas horizontally while OCTG is used to bring oil and gas to the surface.
Key Personnel
Zeyad Al Barrak CEO
JESCO is owned by a variety of investors. The primary investor is parent company TAQA (Industrialization & Energy Services Company) holding 56 percent of shares. One of the world’s largest steel trading firms, Duferco (based in Switzerland), owns 10 percent of the company’s shares. The remaining 34 percent is owned by various well known Saudi investors. JESCO’s production lines are located ten kilometers from the Jubail commercial port providing easy transportation of goods to international locations including the US, Asia
Graduating in 2000 from King Fahd University of Petroleum & Minerals with B.Sc. Finance and Economy, Al Barrak started working at Saudi Industrial Development Fund (SIDF) as a Credit Consultant under Projects Department – Credit Division. In 2007 he started his career in the metal industry and joined JESCO in 2008, serving as Chief Financial Officer until 2014. In September 2015, Al Barrak rejoined JESCO in the capacity of CEO.
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Your Drilling & Production Tubular Challenges is Our Business The Eurotechnology Group is a leading manufacturer, supplier and service provider of innovative Inspection Technologies, Hardbanding Equipment and sophisticated Tubular Threading Systems. The Eurotechnology Group utilises the latest advanced technologies developed inhouse providing a managed service approach focusing on client-led requirements. From day-to-day management of the client’s tubular and associated equipment to complete logistical support, the Group provides services related to the refurbishment of O.C.T.G., Drill strings, BHA, Service tools and equipment inventories employed in the various facets in drilling and the completion of oil and gas wells. Logistical support for Eurotechnology’s One Stop Shop approach to Tubular Management is provided to the end user through a dedicated service focal point responsible for ensuring that the client is fully informed at all times of its tubular and equipment inventories at Eurotechnology’s service facilities via a dedicated real time software interface. The Eurotechnology Group is also a provider of NDT inspection training programmes tailored to meet the customer’s personnel training requirements. In Pursuit of Excellence has always been and will always be, our main Goal. T: +9 66 1 35107172 | F: +966 13 893 8496 E: info.saudi@eurotechnologygroup.com www.eurotechnologygroup.com
Total Tubular Management Services include: • Non-Destructive Testing (NDT) of Casing, Tubing, Line Pipe, Drill Pipe using propriety full length UT & EMI technologies. • Inspection and refurbishment of BHA and the associated tools & equipment • Third party inspection / Quality Assurance / Quality Control • Hardbanding Services, Tungsten Redress of BHA and service tools • Innovated CNC Machining Systems for the refurbishment of Drill Pipe, BHA and O.C.T.G Tubular Goods • Management of Tubular Inventories and Logistical support
Headquarters in Al Khobar with service operations in Jubail & Tanajib EUROTECHNOLOGY INTERNATIONAL CO. LTD. P.O Box: 4275, Al Khobar 31952, Kingdom of Saudi Arabia,
J U B A I L E N E R G Y S E R V I C E S C O M PA N Y ( J E S C O )
SUPPLIER PROFILE
THE EUROTECHNOLOGY GROUP
Your Tubular Challenge is Our Business. The Eurotechnology Group is a leading manufacturer, supplier and service provider of innovative Inspection Technologies, Hardbanding Equipment and sophisticated Tubular Threading Systems. The Eurotechnology Group utilises the latest advanced technologies developed in-house providing a managed service approach focusing on client-led requirements. From day-to-day management of the client’s tubular and associated equipment to complete logistical support, the Group provides services related to the refurbishment of O.C.T.G., Drill strings, BHA, Service tools and equipment inventories employed in the various facets in drilling and the completion of oil and gas wells. Logistical support for Eurotechnology’s One Stop Shop approach to Tubular Management is provided to the end user through a dedicated service focal point responsible for ensuring that the client is fully informed at all times of its tubular and equipment inventories at Eurotechnology’s service facilities via a dedicated real time software interface. The Eurotechnology Group is also a provider of NDT inspection training programmes tailored to meet the customer’s personnel training requirements. In Pursuit of Excellence has always been and will always be, our main Goal. Website: www.eurotechnologygroup.com 8
Feburary 2016
ENERGY
and Europe. CEO Zeyad Al Barrak says: “This is one of the advantages that gives us an edge over our competition.” This strategic location means JESCO is able to supply GCC nations with products in a timely manner as well as smoothly import all the raw materials for production. Work behind forming JESCO began in 1994 but did not come into fruition until 2003, leaving a gap in the market. When TAQA was formed in 2003, one of the mandates for this semi-state owned company was to establish a seamless pipe mill. Thus TAQA adopted the idea and after several additional years of feasibility studies JESCO was born. “We have a capacity of 500,000 metric tons and we are working at that,” Al Barrak says. “We have a large diameter seamless pipe mill that goes from 4 ½ to 16 inches.” Demand for seamless pipe is high for API & Premium Connection (PC) and to
JESCO finishing line final storage evacuation area
500k
metric tons
JESCO’s working capacity
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Q U A L I T Y FIVES TUBE AND PIPE FIVES is proud to have supplied several pieces of equipment to Danieli for the JESCO pipe plant in Saudi Arabia. FIVES has acquired a number of tube & pipe equipment companies and is now the provider of well know pipe plant products made under the Abbey, Bronx, Celes, OTO, Stein and Taylor-Wilson names. The JESCO project included two Taylor-Wilson Hydrostatic Pipe Testers. One of the Taylor-Wilson testers is capable of handling pipe diameters from 140 mm to 340 mm. The second Taylor-Wilson tester has a larger range from 140 mm to 406 mm. Both machines have test pressures up to 85 Mpa with bench loads of over 3200 kN’s. Taylor-Wilson is well known for being one of the most durable and safest hydrostatic pipe testers in the world. There are two large Bronx pipe straightening machines at JESCO’s facility, model number 10CR11. Both straightening machines are designed to straighten pipes from diameters of 140 mm to 340 mm at speeds up to 60 meters per minute. Pipes are straightened in both hot and cold configurations with the hot machine processing pipe at temperatures up to 700°C. Bronx has one of the largest install base worldwide and is a trusted name in pipe straightening. Fives supplies pipe making and finishing equipment to a wide range of industries and has one of the largest ranges of equipment. Fives has equipment to produce, heat treat, straighten, bevel and test pipes from 4 mm to 914 mm in diameter. Fives sells individual machines, multiple machines and complete solutions to general contractors and end users alike. For more information please contact Fives at www.fivesgroup.com fivesbronx-sales@fivesgroup.com
cope up with this demand, JESCO developed so far two PC Connections JPC2 & JPC3 and the list is growing. This will enhance the product mix provided to targeted markets. Plans for JPC4 are underway, enhancing this unique product further.
JESCO has over 100 years of experience in the construction of steel
Production site The production site at Jubail is built on 730,000 square meters of land provided by the Royal Commission for Jubail & Yanbu. Within these perimeters you will find a rolling mill, heat treatment, finishing, hydrostatic and nondestructive testing (NDT) lines. Also onsite is a full-fledged laboratory, enabling JESCO to ensure that the products delivered to its clients w w w. j e s c o . c o m . s a
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J U B A I L E N E R G Y S E R V I C E S C O M PA N Y ( J E S C O )
PIPE PROTECTION TECHNOLOGIES
HIGH–PERFORMANCE API & PREMIUM THREAD PROTECTION FOR COMPLETE RANGE OF OCTG APPLICATION Safe, efficient and cost‐effective packaging for transporting tubular products worldwide.
About SKY-E
Leading supplier of OCTG thread protectors and pipe packing products
Over 30 years’ experience on pipe protection technologies
Products tried and tested, going above and beyond industry standard
Qualified by all leading Oil and Gas Companies
Production capacity to meet any size job
On-time delivery to over 35 countries
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Tel +86 577 86552397 Email info@sky-e.cn
Feburary 2016
| Fax +86 577 86536385 | Web www.sky-e.cn
ENERGY
are of the very highest standard. bringing new innovations into the seamless piping industry. As for market conditions today: “Everybody is facing challenges with the oil prices and the market slowdown in China; they are not growing enough. They are not reaching their manufacturing capabilities and it affected oil consumptions and the drilling activities, which ultimately then affects the consumption of pipes,” explains Al Barrak. JESCO is closely monitoring the global economy. Recently, Aramco (Saudi Arabian Oil Company) increased its production along with their counterparts in UAE, Oman, Kuwait, Egypt and Iraq. Current market conditions are not ideal and to cope with this, JESCO has short, mid and long-
“It is not necessarily about making a profit these days, but you need to survive. It is a survival market now” – Zeyad Al Barrak, CEO
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J U B A I L E N E R G Y S E R V I C E S C O M PA N Y ( J E S C O )
A Step ahead in Capex and Opex Danieli Centro Tube SEAMLESS PIPE TECHNOLOGY TO PRODUCE UP TO 28” DIA API GR 1 TO 5 AND UP TO 160 PIECES/HOUR. Our plants are equipped with conetype piercing mills, original FQM™-Fine Quality Mill (3-roll retained mandrel mill) and sizing/ stretch reducing mill to roll tubes with close dimensional tolerances. JESCO SAUDI ARABIA Complete turnkey complex for high-quality seamless pipe production: hot rolling line featuring FQM mill and pipe finishing floor for 400,000 tpy from 5”1/2 to 16” OD. VALLOUREC STAR OHIO (USA) High performance 3-roll FQM based seamless pipe mill for 450,000 tpy from 1” 1/2 to 7 OD.
BENTELER STEEL/TUBE (USA) High-piece rate (small lots, outstanding plant flexibility) and FQM mill featuring cartridge lateral change-over for 320,000 tpy of seamless pipes. SEVERSKY TUBE WORKS (TMK) (RUSSIA) Hot rolling line featuring 5-stand FQM mill for 600,000 tpy seamless pipes ranging from 6” to 14” OD.
Danieli Headquarters 33042 Buttrio (Udine) Italy Tel (39)04321.958111
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1914 /2014 DANIELI CENTUR Y
term strategies in place. Al Barrak says: “It is not necessarily about making a profit these days, but you need to survive. It is a survival market now.” On average this year, seamless pipes mills are working at a capacity of 35-40 percent, a level that is not sustainable. JESCO is managing this by having a major focus on sales while at the same time, cutting costs wherever possible. Al Barrak adds: “I believe that building key relationships is key in these difficult market conditions.” Saudi Aramco is the leading client for JESCO and it wants to build on this important relationship as well as those with other national oil companies. In the medium to long term, JESCO is eager to focus on lean strategies and production methods while also incorporating Six Sigma techniques. Al Barrak identifies with the unique selling point
“Thirty percent of oil production in the world is in the Middle East. We are not like the other producers of seamless pipes that are stationed in Europe, the Americas and China” – Zeyad Al Barrak, CEO
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J U B A I L E N E R G Y S E R V I C E S C O M PA N Y ( J E S C O )
World leaders in Tubular Finishing Technologies
Your World Partners in Technology
-Pipe Threading machines -Coupling Threading machines - Coupling Starter/ Screw On (buck-on) units - Full and Short Drifters
Proud to be part of the Jubail Energy Service Company success! From the beginning! European Plant:
U.S Plant:
Faubourg de Mignault, 17 - B 7070 LE ROEULX BELGIUM Ph.: +32/64/67.37.77 Fax: +32/64/67.32.67 Email: sales @pmc-colinet.be
29100 Lakeland Blvd., WICKLIFFE 44092 OHIO, U.S.A. Ph.: +1/440/943.3300 Fax: +1/440/944.1974 Email: sales@pmc-colinet.com
www.pmc-colinet.com A Park Ohio Company
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JESCO has: “Thirty percent of oil production in the world is in the Middle East. We are not like the other producers of seamless pipes that are stationed in Europe, the Americas and China.” Aramco is one of JESCO’s major clients and partners; it provides gas used on site in Jubail and 50 percent of JESCO’s sales are to the local market - mostly to Aramco. The remaining half of sales is to near markets and to the US market. JESCO produces seamless pipes for all the main national oil companies such as Abu Dhabi Company for Onshore Petroleum Operations (ADCO) and Petroleum Development Oman (PDO). Along with this, JESCO supplies various distributors and stock holders, including many important distributors of OCTG in the United States.
SAR
1.2bn The amount of revenue generated by JESCO
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J U B A I L E N E R G Y S E R V I C E S C O M PA N Y ( J E S C O )
Manufacturer of industrial processing tools and mechanical spare parts. Operated by highly skilled and professional experts according to standardized quality system and quality control.
OUR CLIENTS
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www.al-aslami.com
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info@al-aslami.com
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Tel: +966 133415159
JESCO has a 750-strong workforce, with a mixture of Saudi nationals and international expats. Due to market conditions, headcount was reduced by 100 but as the market picks up, Al Barrak believes that he will have a large selection of high-quality workers to select from. “Now, there is definitely the opportunity to headhunt qualified, talented and well-trained employees,” he states in relation to redundancies from other companies in the oil and gas industries. “We are giving high importance to training in order to enhance knowledge. We have an alliance with the Human Resource Development Fund (HRDF). This is a government fund that helps us develop Saudi nationals. This help in funding is something we really need to thank
“We are giving high importance to training in order to enhance knowledge. We have an alliance with the Human Resource Development Fund (HRaDF). This is a government fund that helps us develop Saudi nationals” – Zeyad Al Barrak, CEO
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J U B A I L E N E R G Y S E R V I C E S C O M PA N Y ( J E S C O )
LEADING MACHINE-TOOL SUPPLIER WORLDWIDE IN OIL&GAS DANOBAT focus on providing the most suitable solution for your API, GOST and PREMIUM thread requirements fo medium and high production applications, addapting automation level and machines layout to your particular needs.
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DANOBAT
2 0 1 6Arriaga kalea, 21 E-20870 ELGOIBAR (Gipuzkoa) Spain
Tel.: + 34 943 74 80 44 danobat@danobat.com www.danobatgroup.com
the government for,” Al Barrak explains. JESCO credits much of its success to the selection of premium manufacturing equipment made by the Italian machinery builder Danieli. This firm has over 100 years of experience in the construction of steel making and heavy equipment. Al Barrak gives Danieli a lot of credit: “Without Danieli, we would never be able to produce or have such a plant in the Kingdom.” Danieli, as well as having created the Jubail plant, has an important part to play in the future of JESCO. Since opening the plant, schemes implemented by Danieli mean that JESCO was able to widen the pipe sizes it produces. JESCO’s latest product is also its smallest; a seamless pipe that is 4 ½ inches. It also installed a new finishing line that allowed the finishing of a further 100,000 tons of finished pipes. w w w. j e s c o . c o m . s a
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Precision Engineering for Shorter Cycle Times
www.colecarbide.com Only Cole OGW controls part-to-part uniformity and uses less of the allowable tolerance in grinding to optimize production. Pair this with improved tool life, reduced cycle time and expert engineering and you profit from better quality end products. Threading tools made better to perform better. Contact Cole OGW to learn more. 4930 S. Lapeer Road Orion Twp., MI 48359 U.S.A. Tel: (586) 757-8700 • Fax: (586) 757-8701 Sales inquiries welcome
We are Arabian Pipecoating Company specialized applicator for anti-corrosion coating material to the external and internal surface of line pipe, fabricated spools and associated fittings such as valves, elbows, flanges etc, were ranging from 2 to 80 inch (50 to 2031 mm) external and 2 to 72 inch (50 to 1828 mm) internal in diameter. our coating plant in Jubail – Saudi Arabia, can perform the following protective coating:• Fusion Bond Epoxy (FBE) internal & external • 3Layer Polyethylene (3LPE) external coating • 3layer Polypropylene (3LPP) external coating • Liquid epoxy coating internal & external • Field Girth Weld Coating • Double Jointing ( Welding ) of Pipe • Custom Shop Coating for fittings and spools etc. • Concrete Weight Coating Please note that our company approved protective coating applicator for many leading companies such as Saudi Aramco, Saline Water Conversion Corporation (SWCC).in Saudi Arabia, KOC Kuwait, QP Qatar, ADNOC UAE and PDO Oman. Our main activities and product line is directed to the Oil, Gas, Water and Petrochemical industries in the Kingdom of Saudi Arabia And entire Middle east . All our product line process are supported by a documented Quality Assurance System which has been audited and approved by Lloyd’s Registration assurance and which carries ISO 9001/ISO 18001/ ISO 14001 Tel: +966 13 882 2933 Fax: +966 13 882 2487 Email: rkhobar@apco-coating.com Website: apco-coating.com
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In 2012, JESCO went live with SAP (ERP System) to automate the company-wide business activities. This has been revolutionary for JESCO, providing smooth transitions between each function that leads to an increase in JESCO’s efficiency and productiveness. The demand for innovative pipe solutions is very high within the GCC. Al Barrak says: “ We have our own research and development system. “ There are ambitious plans to expand our product offering that may also include drill pipes and further extensions of our size range. “I believe it is important to always enhance the product mix that JESCO can offer,” he adds. w w w. j e s c o . c o m . s a
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JUBAIL ENERGY SERVICES COMPANY (JESCO) P.O. Box 10997, 263 Street, Jubail Industrial City , Kingdom of Saudi Arabia 31961 Tel: +966 13 350 4999 Fax: +966 13 358 1458 www.jesco.com.sa