‘Koiling’ around the new energy order

KOIL ENERGY SOLUTIONS, INC I PROFILE

‘Koiling’ around the new energy ORDER

Koil Energy Solutions Inc, formerly Deep Down Inc, is emerging from a major re-brand and relocation as it marks the company’s 25th anniversary. The transition is aimed at taking its services beyond the traditional offshore oil and gas core to the wider energy sector. President and CEO Charles Njuguna discussed in depth the strategic stepchange with Andy Probert.

Emerging from its former entity Deep Down, Inc, Koil Energy Solutions Inc is not only grasping the industry changes and challenges of tomorrow, but firmly setting its focus on achieving more today.

With 25 years of active service under its belt in full-cycle subsea technology and engineering complexities for the offshore oil and gas industries, the company has dared to think beyond its traditional offerings and re-energise itself for the future.

The company’s core offering has historically revolved around the subsea umbilicals, risers and flowlines (SURF) sector of the oil and gas industry. Core products include the company’s patented flying leads, multi-quick connector systems (including a 20,000psi version under development), riser isolation valve systems, intervention equipment, and a range of umbilical terminations and accessories.

This is in addition to a full suite of offshore installation equipment and services such as cable and umbilical transpooling, testing, monitoring and commissioning, as well as life of field remediation solutions.

Proactive approach

But with the oil and gas industry rapidly advancing to a crossroads and energy demands transitioning to alternative sources, Koil Energy has changed the company’s dynamic by taking a more expansive and diversified stance.

Koil Energy’s reputation for never shying away from challenges has enabled it to garner clients across the globe: it is increasingly being sought by renewable energy participants looking to benefit from this extensive experience. This is aside from discussions around various subsea storage technologies, marinisation of new technologies, and even leveraging its core competencies for hydrogen applications.

President and CEO Charles Njuguna, who has been at the helm since 2019, has led a deep dive, root-and-branch reassessment of the company with the primary and unwavering focus on what it will mean for its 48-strong team, some of whom have clocked up more than 20 years of service.

“For the past 25 years, we have been known as a subsea oil and gas provider. One of the things that we faced is that many pigeon-holed us as a deep-water provider because of our previous name and our history,” said Mr Njuguna.

“While it is good to be known for that, it was ironic there was a perception we

KOIL ENERGY SOLUTIONS, INC I PROFILE

were only deep-water specialists, and by inference, we couldn’t do shallow-water activities. In fact, we do both and many other services.”

He said: “Secondly, we were known for brand-specific expertise, but there was a struggle to see beyond that. So we decided to take a step back and re-imagine what we could be.”

Importantly, the company fully engaged its staff in the decision making, and, according to Mr Njuguna, the team is now emerging stronger, more unified and fully prepped for an energising future.

DNA remains the same

He emphasised: “Koil Energy may be a new name, but our DNA remains the same. Customers have come to depend on us for our results and reliability and our fearless drive to solve complex problems with never-before-seen solutions for the toughest deep-water challenges.

“But as those same customers expand their horizons beyond traditional oil and gas, this move is a charge into a new era, with a steadfast commitment to what we pride ourselves on: nimbly finding unique ways to enhance offshore energy operations.”

Reflecting on the new company name, Mr Njuguna added: “If you wanted to coil up 60 miles of cables, move them a few hundred miles down the coast, then transpool them to a different vessel, we have been the very team to flawlessly perform such a specialised task. The ‘K’ is a universal symbol for different electricity/ energy metrics. It’s energising. So our new name reflects our roots and our future.

“The team took a stern, introspective look into how best to evolve the company. We’ve solidified our focus on our core products and services and sharpened core competencies. Ultimately, we have a unique skillset around different marinising technologies, especially as our customers expand their horizons beyond traditional oil and gas. This is the next step in that journey. We want to be known as energy-source agnostic.”

New order taking shape

Mr Njuguna explained: “Operators have always driven the industry, and award EPCs to service providers like ourselves. But I think the industry is moving towards developing interesting partnerships, for example, between an oil operator and a service provider. Traditional relationships may or may not be the way for the future.

“My belief is that rather than discussing oil and gas and wind power, we should address it for what it is: energy as a whole: and holistically look at the industry so we can work as one in an energy source agnostic sector. Koil Energy is there for the whole energy sector.”

He now envisages more opportunities to provide a service for re-terminations, either extending end-of-life assets or even bringing them back and giving assets a new lease of life.

“The future is truly limitless, and the team is engaged and ready. We are in several promising discussions and anticipate future announcements around the growing energy transition topic and our traditional lines of business.

“We are also looking at new partnerships, with one revolving around wind and creating a new consortium. One company has an energy–agnostic product that can be used across the energy spectrum –and Koil Energy is excited to be involved in this opportunity.”

With cable failings among the highest percentage of insurance claims in the wind sector, the company is also eyeing opportunities to introduce new technologies to close that gap.

“We are also in discussions to provide services for hydrogen applications,” revealed Mr Njuguna. “I truly believe our success is directly attributed to having the industry’s most experienced, adaptable and dependable personnel.

“Our new identity reflects our history with an inextinguishable passion to provide the most innovative solutions for future sources of energy, the most efficient and reliable equipment, and best in class returns for our shareholders.

Charles Njuguna, CEO

“We continue to provide the services we are renowned for, but we are taking those same services and capabilities beyond traditional customers to others within the energy sector.”

The company is also relocating to smaller and better-equipped facilities to handle the diverse offerings and further advance its operations and growth. The move to its 101,000 sqft space at 1310 Rankin Road, Houston, will be completed by the end of September.

“Moving to this facility will enable us to reduce our carbon footprint, further streamline our cost structure and attract high calibre talent as we reposition for future growth. And being located close to George Bush Intercontinental Airport will make it easier for our customers to stop by as they travel into and out of Houston.”

Team approach, exciting future

Every step of the company’s transition, from name change, relocation and service diversification, its employees have been involved from the get-go. Mr Njuguna explained: “For example, we opened up the opportunity for them to discuss the name change, and from that point on, they have bought in very strongly to what we want to achieve.”

He added: “It has been a personal journey for myself. Through the pandemic, the up and downs of the energy industry and the company’s transition, I endeavoured to keep our employees and stakeholders informed, and it has been widely appreciated.”

Despite the changes internally, the company continues to operate along America’s Gulf Coast and for clients worldwide. Its equipment is spread globally on projects in Singapore, Gabon, Trinidad, and on standby for other offshore operations in other regions as the pandemic lockdowns ease.

Indeed, the company announced receipt of an order for installation equipment and services valued at more than $1.7 million, with all activities scheduled to be completed by the end of 2022. The project includes installing company-built equipment, whose final destination is the Gulf of Mexico, with part of the scope being performed in collaboration with other contractors at an overseas facility.

Mr Njuguna commented: “This award highlights our customers’ continued confidence in our team’s ability to provide integrated solutions that span the design, engineering, manufacturing, and installation of subsea production equipment.”

While challenges remain around recruiting talent, pricing and raw materials, the company is firm in its stance on being transparent with suppliers and clients, and taking a partnership approach on projects that help underpin long-term relations.

He concluded: “We are excited to see what the future holds. What’s most exciting for Koil Energy is our commitment to what we love to do, and still being able to offer the experience we have built up over 25 years.

“With a passion for building something bigger than ourselves, a desire to perform against the odds, and a drive to accomplish more than we should be able to, I believe we have the best team to adapt to the transitions now taking hold in the rapidly changing energy space.” n