Focus: Oil & gas accommodation units

Building temporary worker accommodation for the oil and gas industry can be a lot more complex than in other sectors. Cabins used in this line of work need to be radiation proof, blast proof or fire proof.

Occasionally it can be all of the above. With little space or time to build these units onsite, the preferred form of unit is prefabricated.

Prefabricated units are more traditionally found on construction sites, but the oil and gas sector is increasingly making use of them. Nicolai Sorensen, general manager of Boxit, explains: “Our market has been dominated by the construction industry but recently the oil and gas sector has noticed the advantages of the prefab containers – especially for off-shore, as the modules are easy to relocate, stackable to G+2 and certified fire-proofed by Civil Defence as per NFPA-5000.”

The market for prefab modules is growing fast, Maissa BenRejeb-Abdellatif, director of affairs and international, SIM System, says: “Our fastest growth market is the oil and gas companies and within it has been the special Sahara construction (special extra heavy construction made specifically for the Sahara weather and conditions), this growth did not surprise us since we prepared for it.”

The prefab market is not only expanding quickly, but also developing into new areas. Michael White, business development manager at Al Masaood Bergum (ABM) reveals his company’s plans for expansion: “We are diversifying so we are looking to expand our product line to cover more areas. We are now looking at aluminum to get away from heavy steel structures and we are looking for different building materials to save time and weight.”

Sorensen is also excited by developments in the industry: “Until now the prefab sector has been dominated by the “port-a-cabin” type of prefab building structures.

“But numerous incidents with prefab site offices and labour camps bursting into flames have made the local authorities more aware of the materials used in the prefab building sector. This has led to the UAE authorities improving regulations and minimum requirements for prefab labour camps as well as site offices.”

One of the major factors affecting the prefab market is the cost of raw materials. Changing costs can alter pricing structures. White comments further: “Prices have come down, but now we are seeing some of them are starting to go back up again as demand is increasing.

“It’s hit our pricing structure; we have had to limit our quotation periods. Before we would have said it was six months but now we have cut that down to three months to cover the unknowns and the rising costs.”

BenRejeb-Abdellatif says: “Prices of raw materials have been floating lately, for that matter SIM tried to keep the quality and the prices as they are for our clients by creating new ways of work in our facilities and new production chains.”

There are certain requirements for a prefab unit being used in the oil and gas sector. Fireproof materials are one of the main features, as Sorensen explains: “The main focus is fire safety. Therefore we have eliminated all flammable materials from our production and today the BOXIT modules are made solely of non-combustible materials and certified by Abu Dhabi Civil Defence as per NFPA-5000.”

“Our designers are also trained in optimising the design of the buildings in terms of smoke or fire detection systems, escape routes, push-bars and exit illumination. But the harsh environment – especially off-shore – also demands a very robust structure to cope with heavy winds, rain and sandstorms,” he adds.

ABM also has a number of safety aspects built into its products. White reports: “Accommodation units are normally the place of last refuge so that’s got to be the place people can survive if there is an explosion or a gas leak. So all of our buildings are specialised, the HVAC is pressurised so no gas or fumes can come into the accommodation, they have a H60 fire rating so they will last long in extreme temperatures.”

The major challenge of a prefab company is to attract the interest of procurement managers. However there are some pieces of advice the suppliers feel procurement managers should take on board. Sorensen believes they should be looking at prefab buildings as a long term investment.

“The better quality you buy – the longer it lasts. But it is also important to remember that the site facilities are the start and base of any good project – the employees working or living inside these prefab facilities are the most important asset of any project and deserve to be safe and working/living in a clean, healthy and sustainable environment.”

White stresses the importance of diversity, claiming procurement managers need to look at different markets. “They need to update their procurement lists,” he states.

The pre-fabricated accomodation market in the Middle East is looking healthy, but while activity in the construction industry may have already peaked, accommodation for the oil and gas sector is still well and truly on the
rise.

Industry leaders

SIM System

SIM System has been operational in the prefab sector for 25 years. It works in both the onshore and offshore fields and includes Shell, ENI and British Gas among its clients. The Tunisian headquartered company is looking to make inroads into the Middle East this year. The firm’s offshore modules are built under international standards. Additional layers can be requested on the firms offshore accommodation modules in order to give workers a better chance of sleeping.

Boxit

Boxit offers prefabricated containers which are designed to cope with the hot and humid climate of the Middle East. The firm offers design engineering and pricing, production and delivery, installation, turn-key solutions, documentation and control and warranty solutions to its range of clients. Based in Dubai, the company’s units are flat packed, enabling easy storage and reducing transport costs. The firm also offers HVAC and MEP services. The firm has recently won a contract to provide and install full temporary units for a construction project in Abu Dhabi.

Al Masaood Bergum (AMB)

AMB is part of the Al Masaood group of companies and has been operating in the Middle East since 1978. It has production facilities in Dubai, Qatar, Abu Dhabi and is in the process of building further facilities at Dubai Investment Park. The firm is primarily involved in supplying prefabricated steel and timber frame buildings but offers offshore accommodation as part of a joint venture with Netherlands based Hertel. AMB employs over 3400 staff from all over the world including the UK, India, Nepal and Australia.

Specialist Services

Founded in 1982, Specialist Services is a UAE based company with manufacturing facilities in Abu Dhabi and Dubai. The company focuses mainly on the oilfield, marine, power and telecommunications markets. It offers design, manufacture, outfitting, repair, installation and testing services. The firm’s clients include ABB, Baker Hughes and National Drilling Company. The company is currently working on its largest ever offshore accomodation unit for a client in Asia. To read the full interview with managing director Philip Bond go to ArabianOilandGas.com

Quick solution: hired help

Another part of the prefab accommodation market that appears to be booming is the rental sector. Specialist Services’ Arabvan Hire division offers accommodation solutions on a temporary basis.

“Our units fall into two main rental business lines, demarcated as accommodation units and office buildings. Over the last 12 months we have witnessed increasing demand for rental units because they have the advantage of suiting temporary needs in a cost-effective manner,” reveals Specialist Services managing director Philip Bond.

The firm offers a range of both offshore A60 rated and non rated accommodation units, including shower and toilet units. Bond explains the advantages. “As well as cost, a critical factor is speed. It takes years to design and build an extension on a platform, but rental units can be available in a week or two,” he concludes.