A consultancy firm is carrying out a business study to advise Abu Dhabi-linked National Petroleum Construction Company, or NPCC, on its plans venture into the markets of Caspian Sea and the West African countries in order to expand its engineering, procurement and construction activities.
“Within a couple of months, we are expecting to receive a business strategy as to how to go about it,” Hussain Jessem Al Nuwais, Chairman of NPCC told Khaleej Times, on the sidelines of the annual HSE and Quality day. Aqeel Abdullah Madhi, the Chief Executive Officer of NPCC was also present on the occasion.
Al Nuwais said “the government owned off shore petroleum construction company, which had a remarkable year, as it bagged a net profit of Dh915 million in the financial year 2010 on Dh 660 million earned in the same period a year ago, showing a surge of 39 per cent, a record in the 38-years history of the firm.”
“More than 50 per cent of NPCC’s revenues were earned outside Abu Dhabi, from hydrocarbon projects in Saudi Arab, India and Qatar after tough competition with international firms, he said.
The company has set a stretch target of Dh5 billion revenues for the year, 25 per cent higher than Dh4 billion earned last year, the chairman said.
For more revenues, the company is planning to expand its activities beyond the borders in a big way, he said. “We have selected markets of the Caspian Sea area and the west Africa,” he said.
The chief executive officer of the construction firm said, “We want to establish a proper base in both the regions. We could possibly choose Kazakhstan or Turkmenistan in the Caspian Sea area and find local partners there, who have experience in similar business, whereby we will their local knowledge”.
Likewise, in the West African nations of Nigeria and Angola, a business consultant will advise the Abu Dhabi’s construction firm, how to go about it, based on business volumes and expansion plans of those nations in the hydrocarbon sector.
“The business plan will determine what capital expenditure would be needed and also the business model we need to adopt,” Al Nuwais said.
To a question, why foreign firms bagged most of the oil and gas construction deals last year in Abu Dhabi, Chairman Al Nuwais said his company has bagged two major contracts in the offshore platform constructions, which had been its core competency. But, now NPCC was been expanded into onshore construction business, where the competition is tough, he said.