Eversendai

COMPANY PROFILE

2014

EVERSENDAI OFFSHORE

www.eversendaioffshore.com | +971 4 456 4815

“Fabrication and engineering is in our blood…”

Editorial: Harriet Pattison

Establishing its Oil & Gas Sector in 2011, Eversendai Offshore has already been behind notable projects earning itself an impressive reputation within the offshore industry. Awarded the contract for the construction of two liftboats earlier this year, the company hopes this will be the start of many more to come. Total World Energy speaks to UAE CEO, Narish Nathan about the company’s exciting future ahead and why it is not fazed by the industry competition…

Over three decades ago, Eversendai began operations in the field as a structural steel erection company in Malaysia. Since 1983 it has grown exponentially and established itself as an industry leader operating

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as an established tur nkey contractor in structural steel design in the fabrication and erection of steelwork for high rise buildings, heavy industrial plants, stadiums, roof structures, infrastructure projects and the installation

of mechanical and electrical works for both power and industrial plants.

A public company in Malaysia, founder Tan Sri A.K. Nathan set up the original group and still owns 72% of the Eversendai Corporation.

EVERSENDAI OFFSHORE His son, Narish Nathan, represents the UAE aspect of the business. Speaking to Total World Energy, Narish Nathan explains the company is still “very close to my father’s heart and he remains very hands on in the business.”

Eversendai currently employs 10,000 people across the group, from Malaysia to India with the Middle East employing almost 7,000 of those. The company’s largest presence is in the UAE with 4,000 employees and Nathan explains he expects this to increase to 6,000 by the end

of next year.

W ith a fabrication factory in Malaysia, India, Dubai, Qatar and the largest in UAE, Eversendai has been responsible for many noteworthy projects over the years.

Eversendai further cemented its reputation for efficiency and excellent time management with its involvement in the Kingdom Centre in Saudi Arabia.

In 2011, Eversendai made the decision to move into the Oil & Gas industry and marine fabrication industry.

It has since established itself

with a sterling reputation and planned its new yard at RAK Maritime City in Ras Al Khaimah, UAE, 12-months ago. Nathan explains this was a very valuable decision with a positive outcome to date. Specialising in complex fabrication projects, this venture is part of Eversendai’s strategy to double its revenue to RM2 billion by 2017.

“The new fabrication yard will be the largest of the other fabrication facilities.

Per annum, between the six facilities, we will have a combined capacity of 250,000 tonnes of fabrication

Design of the 2 GustoMSC NG2500X liftboats currently being built at the yard in Ras Al Khaimah

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Fuel gas conditioning unit for 15MW Power Plant (Garraf Development Facility Operation, Iraq) Client: Petronas Carigalli Iraq Holding B.V. (PCIHBV)

capacity,” explains Nathan.

“The new yard currently measures 20 hectares but we will expand that to 300,000 m2 by June 2015.

The waterfront will also increase to 700m up from its existing 550m and we have an exclusive quayside.

“By June 2015, in the UAE we will have 50 hectares in one country so that’s 500,000 m2 of land, inclusive of our Sharjah facility. This is the largest investment we have made in one single country and represents the base for us in terms of our core business and will act as a support unit

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“In total, we are investing US$50 million into this new facility, which is scheduled for completion by early March 2015”

for the company.

“In total, we are investing US$50 million into this new facility, which is scheduled for completion by early March 2015,” explains Nathan.

THE OFFSHORE DIVISION In May this year, Eversendai Offshore was awarded the contract for the engineering, procurement and construction of two GustoMSC NG-2500X liftboats with a combined valuation of RM580 million ($180 million) from Vahana Offshore.

“The liftboats are being built for Vahana Offshore,” explains

EVERSENDAI OFFSHORE Nathan. “This is a private arm of the holding company of my father’s investments. We are not building to sell, we are building it to look for longterm lease contracts. We are feeling very positive with the talks we have been having so far with the leading industry players.”

Nathan explains that fabrication for the two liftboats has already began at the new yard: “Traditionally, when we have an expansion of a new facility, we end up building the facility and having to start project fabrication at the same time. However, this has always been a healthy for us as it doesn’t leave us with an empty yard and we generally always have a yard which has ongoing projects.

“This is ongoing right now as we speak and is currently

“The new fabrication yard will be the largest of the other fabrication facilities. Per annum, between the six facilities, we will have a combined capacity of 250,000 tonnes of fabrication capacity”

80% complete. We hope to have it completed by early March,” Nathan adds.

W ith a completion date set for 2016 for the liftboats, this project is quite the milestone for Eversendai Offshore. Selfpropelled working barges for offshore projects, it will be the first Malaysian company to build liftboats for the offshore market.

The very first liftboat, designed in 1955 by brothers Lynn and Orin Dean in Louisiana, set the standard for what we see in the industry today. A liftboat has the capability of raising its hull completely out of the water on its own legs, providing a stable platform where both maintenance and construction can be carried out on oil and gas well platforms.

Safety is paramount in

Represented in the Middle East region by Middle East Technologies FZE P. O. Box 9352 SAIF Zone, Sharjah – UAE Tel: +971-6-5578390 Fax: +971-6-5578391 Email: sales@metfze.com Web: www.metfze.com

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the design and construction of each liftboat due to the stability of the sea floor.

Generally, the liftboat will move on location on a side of the platform where there are no obstructions or pipelines, it will then lower its legs and jacks up out of the water.

Many liftboats practice a preload, a safety measure in place due to the pads resting on a muddy and uneven seafloor. During the process, the boat jacks-up the absolute minimum to clear hull from the tips of the major wave

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“Fabrication is in our blood, engineering is in our blood and building things is in our blood because that’s what we do”

heights, before filling its holds with water for weight. This allows the boat to settle on the seabed for several hours before releasing the water and jacking up to the appropriate working height.

In addition to the preload practice, a complete site survey is also carried out before moving on location.

This survey helps to ensure all seafloor features, including canholes and pipelines, are noted before a final location is chosen.

Eversendai’s two liftboats,

EVERSENDAI OFFSHORE Aryan and Arjun, will have a rectangular hull and four 95m truss-type legs with electric drives and pinion jacks that will allow it to jack up in water depths of an estimated 70m. Additionally, they will each have a 300 tonne crane, accommodation for up to 150 operatives and dynamic positioning systems.

FACING HEALTHY COMPETITION Liftboats are currently a relatively new concept in this area but Eversendai is confident of receiving more orders in the future with measures in place to ensure it becomes the go-to company.

Venturing into a new industry will always mean facing the current competition, which, in the offshore world is continuously improving. A daunting prospect perhaps, but it seems Eversendai Offshore is fairly confident, believing that with its strong workforce and industry expertise, it will become a key industry player in no time at all.

“Competition is good and we always encourage competition as long as it is healthy competition,” Narish explained. “I believe there are already established players in this industry who have been here for many years.

We are looking to position ourselves as a company who has fabrication as its core expertise. We don’t do simple fabrication at Eversendai, we have all the complex fabrication works. Some of the oil and gas people we have bought into our RAK

fabrication facility have been quite amazed at the quality and complexity of the work that we do.

“Fabrication is in our blood, engineering is in our blood and building things is in our blood because that’s what we do. We have the right recipe to be successful because we are not a new company coming from nowhere trying to undercut, we have built power plants which I think is more complicated, it is far simpler trying to commission a liftboat.

“We are a fabricator, a core builder of mechanical, complex plants, so we are trying to bring something new and something fresh to the table. I think we are going to be quite competitive as our management structure is very lean and mean and we have a low cost centre in RAK which we plan to utilise as a base to do all the fabrication works.

“Of the competition out there, some of them have recognised that we are new and conceptually, they have recognised that we are on the

PCT

GROUP LTD The Force Behind The Lift PCT Group designs, manufactures and distributes specialist material handling equipment for the industrial and energy sectors.

P.O. Box 261112, JAFZA, Dubai, U.A.E. Tel: +971 4 883 7585 Fax: +971 4 883 6530 e-mail: pctme@emirates.net.ae

We have a comprehensive range of overhead cranes, powered or manual chain/wire hoists with excellent headroom capabilities and close radius performance, and a variety of winch configurations, all available suitable for an Ex hazardous area.

We also have a unique hoisting system for use in LNG pump handling.

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“Even though the yard is not ready, for the Petronas job we used our facility in Sharjah.

I believe the yard should be ready by December, major works have started in terms of development. I believe the new yard is going to create another window of opportunity for us in terms of having a waterfront facility, this is the first waterfront facility for Eversendai,” he added.

Narish Nathan Eversendai Offshore CEO

way to become one of the players in town and I believe they should be worried.

“There are not many players in town that can compete with us - we will be competitive.

Our hallmark has always been at Eversendai that client commitment and quality, and satisfaction of the client is extremely important. Safety has also been of paramount importance for us and of course we deliver what we commit.

“In 30 years, we have not delayed a single job. That track record has resulted in people inviting us to bid for projects. Today we are executing a project in Azerbaijan which we have been invited to,” Narish adds.

THE FIRST OIL & GAS PROJECT Earlier this year, Eversendai

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Offshore recently completed its first project for the national oil company, Petronas.

Constructing a fuel gas module for Iraqi operations, Nathan explained in an interview with Arabian Oil & Gas magazine: “It is the first time Eversendai has done an oil and gas project. It was a big milestone for us.”

Executed and completed to Eversendai’s high standards, Nathan explained in the interview just how important this reputation is for the company: “We are banking on the reputation of being able to deliver what we are able to take on and it speaks volumes that Petronas are surprised and impressed that we have executed the project well. We are looking to see how we can work with other oil companies, and EPC companies as well.

We are also looking at how we can form alliances to bid for jobs jointly.

LEADER IN POWER PLANT CONSTRUCTION A prominent market leader in power plant construction, Eversendai has completed numerous mega coal fired power plants since its inception. Notable projects include the 3x700MW Manjung Power Plant in Perak, Malaysia for Alstom Power and the 3x700MW Tanjung Bin Power Plant in Johor, Malaysia.

Eversendai’s contract for the 2x700MW Jimah Power Plant in Port Dickson, Malaysia for IHI Corporation and Alstom Power included the erection of boilers, ESP, FGD and all related works.

W ith a solid repute within the industry for completing projects on time, these developments, amongst many others, involve complex erections which require not only innovative engineering but construction methodology which are both developed inhouse and on-site.

A BUSY FUTURE W ith over three decades of experience, Eversendai has already accomplished an impressive reputation with its new venture into the Oil & Gas

EVERSENDAI OFFSHORE industry.

“We are very busy,” Nathan explains. “The team has been headhunted and assembled and all have the relevant industry experience. They have all been extremely busy, especially in the start-up and execution of the two liftboats projects.

“Although people are saying

“Competition is good and we always encourage competition as long as it is healthy competition” the oil prices are going down, I think we have two years of work which is in the final stages of discussion. Today we are looking at projects we need to secure and looking ahead and I think it looks very promising and interesting.

Although markets can change, we are very, very positive,” concludes Nathan.

Forming allegiances with some of the global industry leaders and maintaining a highly competitive and exciting edge, it seems that Eversendai Offshore’s recent success is only the beginning of a well-deserved and busy future ahead

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