Qatar’s home grown Black Cat Engineering and Construction has been grabbing headlines for all the right reasons in recent weeks. The company, which began with a small office in Doha and a single portacabin site office in Dukhan oil and gas field, is today stamping its mark upon many of Qatar’s most ambitious upstream and energy related projects, and may well start to look to Gulf, or even international markets, as much of its domestic project portfolio reaches fruition.
The company’s evolution into Qatar’s largest EPIC and maintenance contractor for the upstream oil and gas industry has coincided with quite unparalleled activity in the small Gulf state. Today the company claims a manpower base of over 2500 men and anticipated annual turnover just shy of the $100 million mark.
In October last year AMEC, one of the largest international engineering and project management companies, joined forces with Black Cat, forming a joint venture agreement to offer asset support services to the oil, gas and petrochemical sectors in the country.
Emerging trend
The JV should be seen as part of a wider trend, which is accelerating in the region, of forming top tier, preferred bidder status firms with global competencies, but national backing. It’s a mix that’s bound to win. Indeed, the same synergies have long been exploited in joint venture outfits created from international oil company minority stakeholders and the national oil companies. Few of the world scale projects embarked upon in the Gulf region have not had an IOC name attached. Shell’s Pearl GTL plant with QatarGas, the upcoming Shah sour gas development company has ConocoPhilips onboard as a major stakeholder, and countless other examples exist throughout the upstream project landscape. Even local service providers, such as Al Shaheen Well Services in Qatar, have taken a technological leap bringing onboard Weatherford as partners.
Of the Black Cat, AMEC deal, the official word was that the JV combines the global capabilities and strong relationships of AMEC, with the long established local capabilities and market position of Black Cat. The deal could prove critical for both companies, essentially delivering a one stop shop bringing international best practice capabilities, with the all important local delivery touch to customers in Qatar. Exactly what a national oil or gas company would have on its wish list.
“This new joint venture is part of our long term strategy to not only work in countries but also to be an integral part of their future. I am delighted to be working with Black Cat as we come together to form a world class service for Qatar, part of our strategically important Middle East region,” said Tony Cruddas, president of AMEC’s Natural Resources Growth Regions Business.
Sheikh Hamad bin Abdulla al-Thani, Black Cat chairman said, “We have created this joint venture company to offer truly world class services to world class companies like QP and its international partners. The JV with AMEC enables us to offer much needed services to the rapidly expanding oil and gas production facilities in Qatar.”
Black Cat was acquired by Qatar Investment & Projects Development Holding Company (QIPCO Holding) in 1999. The fresh injection of capital from QIPCO has seen turnover and profitability increase five-fold since the acquisition. With a healthy backlog of over $165 million (excluding a $467 million joint venture project for the Ras Laffan Emergency and Safety Training College), Black Cat has been well placed throughout the downturn and continue its
rapid expansion.
The company is currently executing projects in Dukhan, Mesaieed and Ras Laffan and its client base includes Qatar Petroleum, Gasal (a JV between QP and Air Liquide), Rasgas, Qatargas, QChem, Qafco, Petrofac and Hyundai. Recent and ongoing projects include pipelines and compressor stations, storage facilities, control room upgrades and brown field modifications to existing process plants.
The company has managed to expand its originally fairly limited array of contracting services to include all aspects of engineering, construction and maintenance of oil, gas, and petrochemical plants.
Project Watch
Last month Black Cat awarded a $2.8 million deal with ABB to design and develop a major integrated Safety Integrity Level 3 and process control solution for a gas pipeline project in Dukhan. Dukhan is home to one of Qatar’s largest oil fields, encompassing four reservoirs, three of which are oil reserves and one containing associated gas. The production facilities located in the oil field produce over 335 000 barrels per day.
Last year the firm scooped a major contract from QP for the EPIC of Sweet Fuel Gas Supply to Dukhan consumers. With an approximate contract value of $110 million, the project is scheduled for completion in March 2012.
The project consists of sweet fuel gas supply system pipelines and associated facilities. The construction activities include but are not limited to the construction of pipelines with sizes ranging from 4 inch to 36 inch diameter.
In addition, 42km pipeline, cable trenching, road works, 62 culverts, 83 track crossing, pig launchers and receiver stations, valve stations, 33 KV sub-station & control system works are involved.
As Arabian Gulf states seek to seal more of the value-creation projects within their borders, ambitions to retain more of the value-add service revenue comes as a natural progression. Such partnerships have already proven hugely successful elsewhere. In the UAE the state investment firm Mubadala joined forces with international service and EPC provider Petrofac to form Petrofac Emirates, in a 50/50 joint venture.
Since then the JV firm has outstripped the pack when it comes to winning major deals in Abu Dhabi’s upstream business, but also outside its own home ground. Last year saw the nationally-backed, internationally accomplished partnership net billions of dollars worth of business.
The JV, formed back in 2008, promptly scooped a major contract award from Gasco, worth approximately $2.1bn, with a value to Petrofac Emirates of around $1bn.
The 48-month lump-sum contract which kicked off in 2009 is for the construction of the 4th NGL train at the Ruwais complex in Abu Dhabi. The firm is considered amongst the front-runners for work on the development of the Shah Sour Gas Field, with contracts expected to be announced in by June this year. As far as companies to keep an eye on go, we suspect Black Cat is about to pounce on projects in the wider Gulf. Qatar is a fantastic proving ground, but the company’s aspirations, and financial clout, suggest it can’t be caged there forever.
