Abu Dhabi-based Adyard, now operating as a key part of Topaz Engineering, is in the final stages of implementing its single-largest contract – the $40-million construction of a Mobile Offshore Production Unit (Mopu) for SBM.

The unit, meant for the Yme field in Norway with Talisman Energy as the end-user, will be completed by the end of this year.

The project involves the fabrication and construction of a hull and top sides totalling 11,500 tonnes. Topaz has installed process equipment and done steel and piping work.  Taking into account the size and scale of the project, Topaz’s quay was upgraded to suit the loadout of the completed module. 

“This project and others like it reaffirm our capability to deliver highly complex, large-scale engineering projects to the high standards of the global oil majors, said A Fazelbhoy, CEO of Topaz Energy and Marine.

“This will hold us in good stead for major contracts in the near term. We look forward to capitalising on the fact that Topaz Fabrication and Construction (Adyard) is a local Abu Dhabi company with extensive fabrication facilities in Musaffah. We hope that this will give us a competitive edge with our important local clients.”

A landmark project (contract value $16 million) that Topaz completed recently was the fabrication, load-out, marine transportation, installation offshore, hook-up and commissioning of an LNG loading module for Qatar Gas berth 6 through Fluor Mideast.

“Based upon our knowledge and experience in the fabrication, construction and offshore installation projects, Topaz has been tendering for executing major EPIC works for the Adnoc group in association with internationally reputed engineering companies,” says Fazelbhoy.

Adyard has been one of Topaz’s flagship oil and gas manufacturing facilities.
“Mid- and late 2008 saw postponements because of the relatively low oil prices and non-availability of project funding for our clients,” commented Fazelbhoy.

“Oil majors were reluctant to invest in new project exploration and to upgrade existing infrastructure. This has impacted our order intake for our oil and gas fabrication business as new projects and upgrades were delayed.

“However, the continuity in business volume through the order book backlog of 2008 and the outstanding performance of our services business segment greatly assisted Topaz to sustain the overall performance.”

The official believes oil majors and national oil companies will “open the taps” again. “After all,” he argues, “existing fields require continued investment and many oil and gas assets today are aging and need replacement.

“In a global climate of dwindling reserves and relatively resilient demand, holding back on strategic expenditure for exploration and development simply isn’t sustainable. Therefore we expect positive developments for the industry in 2010 and expect to move full steam ahead.” 

Organic growth
Fazelbhoy expects to see organic growth in all of Topaz’s strategic business units. He foresees an exciting future for Topaz Ship Building, part of the Topaz Engineering division and a relatively new venture. The company has two yards, one in Musaffah and the other in the Port of Fujairah.

“Ship Building is an industry where you need to scale up to critical mass before you start reaping the rewards of your investment and that’s exactly where we are at the moment. In terms of quality, we have already reached the highest international standards and have delivered nine vessels to fully satisfied clients in 2009, both from our Fujairah and Abu Dhabi yards,” he said.

Topaz Marine Repair is looking forward to the opening of its newest shipyard in Bautino, Kazakhstan, in November this year.

Topaz has been aggressively pursuing regional and international acquisition opportunities. Its major clients are global oil majors such as BP, Shell, Agip KCO, Oxy, ENI, ConocoPhillips, ExxonMobil, Lukoil, Maersk Oil, Statoil and Total.

On the engineering side it serves Adnoc group companies, Qatar Gas and renowned engineering companies such as SBM, Fluor, Technip, L&T and Schlumberger, in addition to private companies such as Atlantis Holding and RAK Petroleum.