Energy Foresight (India) Pvt Ltd

Company Profile

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Table of Contents

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Contents Page No.

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The Company.Highlights.Objectives.Mission.Vision.GoalsPrimary Focus.Products and services.Growth Plan.Marketing Plan.Business Volume.Features and Benefits.Present rig owners.Rig & Equipment Suppliers.Advantage.Marketing Strategy.Business Promotion.Pricing.Location.Operational Plan.Management and Organization.Manpower.Financial analysis.The Team.

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1. The company.

Energy Foresight (India) Pvt Ltd (EFIL) is a newly formed Supply, Servicing and Manufacturing Company of Technocrats with focus on the Energy Sector. The Company’s aim is to provide solutions, serve and support the Energy sector companies locally and globally.

In the first phase EFIL will supply high tech equipment manufactured by our foreign associates for the Energy sectors such as Oil, Gas, Solar, Wind, Wave, Oil sands, Water Hydrates etc in the Indian Market.

After sale services, maintenance, spare parts supply and repair support to all Land Drilling/Work over Rigs and other similar structures will be another important thrust area.

Providing Consultancy and Inspection services for fabrication, erection, load out and sea fastening of offshore/onshore structures will be a significant area of business.

In the second phase, focus will be on rig repair and breakdown services in the remote drilling locations through a dedicated workshop and Mobile workshop vans.

In the third phase, EFIL will establish manufacturing facility/facilities for the complete energy sector spectrum on its own or through Joint Ventures and serve local and Global Markets.

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2. HIGHLIGHTS

1. Private Ltd Company dedicated to Energy Sector growth through Supply, Servicing, Repair, Consultancy, Inspection and Manufacturing.

2. Authorized Capital: Rs.20 lacs. (Rs.2 Million)

3. Location: a. Office:

  31, Vijaya House, Station Road, Vikroli (W), MUMBAI 400 083. India.

Tel. No. 022 2578 5243 / 3153 Email: info@energyforesight.co.inWeb site: www.energyforesight.co.in

b. Workshop:

Vadodhara, Gujarat.

4. No. of persons employed: (5th year) 39 Staff 85 Workmen

5. Effect on Environment: Non-polluting Industry

6. Project Commencement: January 2015.

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3. Objectives: 1. Provide technological solutions to the entire spectrum

of Energy Sources.2. Supply world class equipment at competitive prices.3. Provide after sale services including breakdown services

through mobile repair vans.4. Stock and Supply spare parts.5. Carry out repair of rig structure, equipment and

components through a dedicated workshop. 6. Manufacture world-class drilling/work over rigs,

associated equipment and other equipment for the Energy sector at competitive prices.

7. Improve manufacturing standards and techniques by using environment friendly processes so as to remain competitive in the global market.

8. Implement greater integration of indigenous equipment into the manufacturing process.

9. Provide healthy working environment through participative management.

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4. Mission

1. To meet the need of the Energy sector:

Supply equipment and services through Global sources.

Provide insitu emergency repair and maintenance services at site.

Manufacture, Service, Upgrade & Repair Land/Work over Rigs, Rig Equipments and equipment of other energy sources.

Manufacture, Modernize and Maintain special purpose rigs and equipment.

Actively participate in the Energy sector development.

Provide Consultancy and Inspection services for Offshore / Onshore structures and installations.

2. Contribute to National development by emerging as an internationally recognized Service Provider and Manufacturer.

3. Adhere to inherent values and ethical standards at all levels of operation.

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5. Vision

Be the best in the country and gain total support of our associates and customers through a process of continuous improvement and good governance.

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6. Goals:

Flexibility and ability to respond to customer needs.

Reduce delivery time without compromising quality.

Improve reliability of budgets & schedules.

Address needs of the environment.

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7. Primary Focus:

The Company will be focusing in the following business areas:

1. Supply, Servicing, Maintenance and spare part supply for land drilling and work over rigs for Oil, Gas, CBM, Shale in India.

2. Servicing, maintenance and up-gradation of other rigs operating in India.

3. Consultancy for Fabrication, Erection, Load out, Sea fastening and Marine transportation of offshore structures.

4. Survey/ inspection of all off shore and on shore structures like Platforms, Drilling rigs, Semi Submersibles, SPM’s etc.

5. Supply of other Energy sector equipment and services.

6. Reconditioning and restandardsizing of equipment and components through a dedicated facility in Gujarat.

7. Manufacturing facility for energy sector equipment and structures in Gujarat or Maharashtra.

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8. PRODUCTS AND SERVICES

The initial activity of the Company will be to take up servicing and spare parts supply for Land drilling and work over rigs of the Oil and Gas sectors operating in India. The company will be contacting foreign rig owners whose rigs are operating with ONGC and also operating independently.

As Original Equipment Manufacturers (OEMs), it is the responsibility of the rig suppliers to provide after sale, breakdown maintenance and repairs. Company has already identified such rig and associated equipment suppliers to provide maintenance and repair assistance to the rig owners.

The Company will be focusing to supply more & more new rigs and also take up revamping / up gradation of Drilling & Work over Rigs of other globally reputed companies. Also will help customers to outsource replacement equipment for the old rigs and supply new equipment manufactured by reputed manufacturers.

Trailer mounted Drilling, Work over Rigs and other equipment will be transported to a leased facility in Vadodhara for up gradation and servicing. Specific drilling equipment needing overhauling, servicing and certification will be brought to this facility and support of local workshops will be availed for machining etc.

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To service the rigs operating in remote areas and also attend to breakdown repairs, Mobile workshop vans will be procured. These mobile vans will attend to the repairs at short notice.

Indigenous manufacture of Rigs and other Energy sector equipment will commence by the end of fifth year of operation. A dedicated facility will be established or taken on lease and depending on the increase in business volume; additional independent facility will be established.

The Company will extend its supply and repair support to the Global market progressively.

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9. Growth Plan:

Phase I

a. Marketing / Sale of Drilling and Work Over rigs for Oil, Gas, Coal Bed Methane, Shale Gas and associated equipment of foreign manufacturers.

b. Providing after sale services and spare parts supply for all products and equipments supplied through EFIL and also those directly supplied by OEM’s through a leased facility in Gujarat.

c. Provide technology, supply equipment, carry out erection, commissioning and after sale services for Wind, Wave, Solar and such other non conventional Energy sources.

d. Provide Consultancy and Inspection services for the Offshore and Onshore installations.

Phase II

a. Providing in situ repair and maintenance services to Drilling/ Work over rigs and other production units in remote areas through mobile workshops.

b. Up gradation and supply of advanced equipment to existing Rigs.

c. Revamping of existing Drilling & Work over Rigs.d. Restandardsizing of equipment and components

through a dedicated workshop.e. Supply, erection, commissioning and after sale service of

Wind Mills and Solar power systems.13

f. Supply of equipments and services for other core sectors like Shipping, Ports etc.

g. Marketing of drilling and other chemicals for the Energy sector.

h. Marketing and servicing of Early Production Modules.i. Providing after sale and repair services to neighbouring

countries.

Phase III.

a. Manufacturing of complete Drilling and Work over Rigs for Oil, Gas, Coal Bed Methane, Shale and Water.

b. Manufacturing of critical equipment for other energy sources.

j. Manufacturing / repair of Derricks and Drilling Systems for Offshore Rigs.

k. Manufacturing Subsea structures, Skid mounted Early Production equipment.

l. Supply of equipment to the Global market.

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10. Marketing Plan:

I. Drilling Rig Business for the Oil and Gas Sectors. A. Market research: India’s large sedimentary area of 3.14 million square kilometres has a prognosticated hydrocarbon resource base of 28 billion ton of Oil Equivalent. Out of the 26 sedimentary basins in India, over 15 basins are under various stages of activities and / or reconnoitred exploration.

Government is encouraging more and more local and foreign participation in developing Oil & Gas fields in India. Through the New Exploration Licensing Policy (NELP), operationalised since 1999, 235 production sharing contracts have been added and the investment made by Indian and foreign companies is of the order of US$ 14.8 billion. Thus the world focus is slowly shifting to India. India is also the third largest producer of Coal in the world. The estimated coal resources are 210 billion tons. Coal Bed Methane Gas found absorbed between the coal seams and emitted during coal mining has also emerged as a clean energy source. The CBM resources of India are estimated to be of the order of 0.8-1.5 TCM.

15 As the gas consumption in India is predicted to increase,

Government is encouraging more local and foreign companies’ to participate in extraction of CBM. Total sedimentary area for CBM exploration in India is of the order of 2600 SQ.KMS. Government is awarding more and more CBM blocks under its CBM policy.

Another important source of gas is from Shale. Shale gas is natural gas trapped in shale rock formations and India is holding 500 trillion cubic feet of shale gas reserves.

ONGC has recovered shale gas in Durgapur and the gas reserve is spread over 12000 KM in Durgapur-Raniganj area. This is world’s third shale gas find, the other two being in North America and USA.

All such exploratory activities require ready availability of drilling / work over rigs, equipment and structures. There is a shortage of special purpose rigs and this along with shortage of crew is slowing the entire Oil & Gas sector.

The major rig owners are ONGC & Oil India. ONGC owns 74 Land Rigs and 74 Work over Rigs. Oil India owns 27 Rigs. For the next ten years ONGC and Oil India have projected a requirement of 170 and 90 rigs respectively.

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All existing rigs of ONGC and Oil India are ageing and no proper repair facilities are available in India. With the Oil prices increasing, requirements of rigs are going to increase further.

BHEL is the only land rig manufacturer in India for Oil & Gas. Rigs for CBM and Shale gas are special purpose rigs and are to be imported. Many private drilling companies have imported low quality Chinese Rigs for drilling shallow wells. Many of these rigs are idle for want of proper maintenance and replacement parts. Rig collapse and equipment failures have been frequently reported.

Therefore, Supply of quality Rigs and Equipment, proper after sale service, manufacturing & servicing of Rigs and sale of special purpose rigs / equipment as a new business venture in India is a commercially attractive proposal.

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11. BUSINESS VOLUME: (Land/Work over Rigs )

Ten year market projections in Million Rupees (2012)

Description ONGC OIL INDIA PRIVATE

Nos. Value Nos. Value Nos. Value

New Land / Work over Rigs

170 102000 90 54000 100 12000

Revamping of Old Rigs

75 22500 18 5400 10 1000

Rig Equipment Supply

Various equipments.

4500 Various equipments

1080 Various equipments

800

Total: 129000 60480 13800

Total available market for 10 years = Rs.203,280 Millions.

Market for Work Over Rigs = Rs.101,000 Million.

Market per year = Rs.10,100 Million.

Target market (5th year) = Rs.2,200 Million.

> 22% of market demands.

Cost of 50 MT Work over Rig = Rs. 130 Million.

Life time of Work over Rig = 20 Years.

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Payback period of Work over Rig = 5 Years.

Utilization = 90%

Cost of Land Drilling Rig (BHEL) = Rs. 600 Million (Average).

Life time of Land Rig = 30 Years.

Payback period of Land Rig = 3.6 Years.

NOTE:1. The market projections have been carried out based on published

data of ONGC and Oil India in newspaper articles. 2. While analyzing the market data, the existing capabilities of BHEL,

the only major competitor in India has been considered. BHEL can build up to 7 new Rigs per annum at their facility at Hyderabad. It is highlighted that BHEL manufactures only Land Drilling Rigs.

3. The potential rig business in India is a minimum Rs.3,000 to Rs.4,000 Million annually. If exports are considered, the business could go up to Rs.10,000 Million.

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12. FEATURES & BENEFITS

All drilling operations started in India using Russian & Romanian Rigs. They are strong and sturdy rigs and continued to remain in operation till American rigs came into the market. Along with American equipments, came API certifications and the stringent safety requirements associated with certification. In Russia, all rigs & equipment meet the same quality standards but are not API certified.

Today many Russian, Romanian, Canadian and Chinese rigs are operating in India and they all need support services from local servicing companies. As the manufacturers are few in India due to dependence on imported special equipment, EIPL has plenty of opportunities to supply rig, rig equipment spare parts and after sale service.

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13. ADVANTAGE

EFIL will be the only Company in India with capabilities to provide consultancy, inspection, supply, service and repair drilling/ work over Rigs, Rig equipments and a variety of services through a single source.

When we start providing repair services in situ through a mobile van, again we will be the first one. Progressively, we will be able to provide a variety of services under one umbrella including building of rigs locally.

Generation (UPET) has supplied 4 rigs in India and the customers are happy with the performance. Companies like National OilWell, Stewart and Stevenson etc have supplied rigs and equipment in India. EFIL will offer its services to such companies and become a one-stop-shop for Drilling Rig Business.

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14. Marketing Strategy

EFIL will be focusing on Indian Customers and International suppliers parallelly for the rig business. Initially all marketing will be through direct interaction with customers. EFIL will participate in exhibitions and trade shows along with our foreign partners and also will advertise through sector specific media. Membership of trade and professional bodies like International Association of Drilling Contractors (IADC) will keep the company listed in their sites.

Providing repair and servicing activity will be taken up through a designated workshop taken on lease. Rig and Rig equipment suppliers will be contacted to appoint us as their authorised service provider/ spare part supplier.

EFIL will develop connections with other reputed international rig manufactures to promote their rigs and equipment in India with the assurance of setting up manufacturing facilities jointly as the business improves.Improving contacts with ONGC and Oil India at all levels will be the first marketing activity of the company.

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15. BUSINESS PROMOTION

Expenses towards business promotion will be for travel of Senior Executives and the Marketing team. Initial investment towards Brochures, Catalogues and Videos etc. will be the major expenses. Participation in exhibition, trade shows etc. will be limited to three per year.

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16. PRICING

The first activity of the company will be sale of drilling rigs equipment, drill pipes, tools, special rigs etc. New rigs, specific structures & equipment needing API certification will be supplied directly through our associates or imported as per the agreements with the customers. Pricing will depend on OEM prices and market demands.

Parallelly, servicing of rigs and equipment will be taken up through a hired workshop facility in Vadodhara in Gujarat. Pricing for activities like overhauling, cutting, welding, machining etc will depend on various factors like proximity to the drill site, manpower requirements, expected duration etc.

Indigenously available quality equipment will be amalgamated into the system. All essential spare parts will be stocked. The company will thus be able to keep the prices competitive at the same time be able to provide quality services.

Support of quality workshops will be taken for miscellaneous engineering activities to adhere to committed delivery schedules.

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17. LOCATION

The Registered office of EFIL is Mumbai. All marketing activities are carried out through this centralised office now. A bigger office will be established in Mumbai itself progressively as all major customers are here.

A huge population of land and work over rigs are in operation in Gujarat. A factory will be taken on lease in Vadodhara for providing repair, engineering support, overhauling of rigs, stocking of spare parts and stationing mobile vans.

The manufacturing facility may be established in Gujarat or Maharashtra where transportation of heavy components and finished rigs are possible.

2518. Operational plan

A. PRODUCTION

The repair activities will start through a leased facility with essential machines like lathes etc are available. All specialised activities will be carried out in house by competent workforce. Locally available machining, blasting, painting, NDT Inspection facilities, heat treatment etc. will be used wherever possible.

Providing a dedicated Mobile Workshop Van will be the most important support EFIL will provide to the Rig owners.

Drilling rigs operate at remote inaccessible locations and repair facilities are not readily available. It is not possible for rig operators to get technical support at short notice.

If not repaired in time, the rig down time increases and there will be substantial financial loss for the rig operators.

Mobile Workshop Vans are equipped with essential machineries such as work benches, lathe, milling machine, grinding machine, generator, welding machines, compressor, lifting arrangements on monorail, tools, tackles etc. At short notice, the service van along with qualified technical team can be deployed to the drill site for attending to repairs. Such an arrangement will reduce repair and down time cost considerably.

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EFIL will acquire the first Mobile Workshop Van during its second year of operation. More Vans will be added progressively.

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B. Why Workshop in GUJARAT?

All known and prognosticated Oil, Gas, CBM and Shale gas fields on land are in Assam, Gujarat, Rajasthan, East Coast of Andhra Pradesh, West Bengal, Jharkhand, Madhya Pradesh, Rajasthan and Uttar Pradesh.

Majority of land rigs are in operation in Gujarat, Assam and Rajasthan. To undertake any maintenance, up gradation or repair of these rigs, equipment and manpower have to be mobilized. Rigs also have to be bought in for repair to a centralized location. Transportation of repaired and new rigs to site is also very important activity requiring heavy trucks, trailers and wide roads.

The ideal location to set up the factory is Central India and hence Gujarat is identified. The other reasons for identifying Gujarat are:

Close proximity to existing drill sites Availability of skilled labour at low cost Industrial peace due to cordial relation between labour

& employer Proactive Govt. to promote investments in the State in

an investor-friendly way Availability of land at comparatively low cost Excellent rail-road infrastructure Well established cluster of steel fabrication units

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19. Management and Organisation.

The Management of the company is through the Board consisting of Chairman and Directors. The day-to-day operation of the company will be managed by the CEO and various Divisional Heads under him.

Secretary

Secretary

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DIRECTORS

C. E. O.

Head- Business

Development

Head- Works

Head- Mobile

Workshop

Head- Quality Control

Head- HR &Admn Head-

Stores & Purchase

Head- Inspection

ServicesAccounts Team

20. Manpower:

Sr.

No.

Manpower Year-2015

Year-2018 Year-2020

1 CEO 1 1 1

2 Head of depts... 3 7 7

3 QC 1 2 2

4 Service Engineers 2 8 8

5 Supervisors 1 3 5

6 Officers & Staff 8 14 14

7 Workforce 20 67 85

8 Security 2 2 2

Total: 48 103 124

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21. Financial Analysis.

The initial cost will be for leasing a new office space, administration, office expenses, salary, travelling, business promotion etc.

Workshop will be taken on lease in Gujarat and manpower added progressively.

A mobile workshop can cost up to Rs.65 lacs. First Mobile van will be added in the second year and two additional vans will be added in the next two years.

2015-16 2016-17 2017-18 2018-19 2019-20 -

200

400

600

800

1,000

1,200

Rev-enue

YEAR

RS.

IN L

AC

S

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The Team.

1. Dr.C.Janakiram. DME, BE, PhD, D Litt.(Honaris Cousa),FIIPE, MIMar.E.

A technocrat with more than 46 years experience in the Marine/ Oil & Gas sectors. Held senior positions with Public Sector and Blue Chip heavy engineering companies.

a. Mazagon Docks Ltd, Mumbai-

Responsible for fabrication, erection and load out of offshore platform structures, SPM’s etc.

Underwent specialised training on heavy lift operations at American Hoist Training Institute, St.Paul, Minnesota and for installation of offshore structures & pipe laying in the Gulf of Guinea, Nigeria under French engineers.

b. Richardson and Cruddas, Mumbai.

Built land rig structures, repaired offshore platforms and supported setting up tubular plant.

c. Independent Consultant, Mumbai.

Carried out inspection of jack up rigs and other offshore structures like semi-submersibles, platforms etc.

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d. Managing Director United Van Der Horst Ltd, Mumbai. (Joint venture UB Group Company).

Reconditioning of marine and oilfield equipment/ components like Crank shaft, Cylinder liners, Piston Crowns, BOP’s, Rotary tables, Hooks, Blocks, Swivels, Top drives, Mud Pumps, X’Mas trees etc. Underwent specialised training in Singapore and Netherlands.

e. Senior Vice President, Walchandnagar Industries Ltd, Mumbai.

In charge of Oil and Gas division. Prepared Feasibility study, Signed MOU, acquired land and completed all formalities to establish offshore yard under joint venture.

f. Associate Director, Assam Company Ltd.

In charge for setting up offshore yard and SEZ in Gujarat under Joint venture.

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2 . Madhav Nanivadekar . B Sc. (Hons.), DAM, DSM, MMM.

First Generation Entrepreneur brings 40 years’ experience in broad spectrum of BUSINESS viz., Sales/Marketing/Business Development, Projects, Administration, Liaison, Accounts, HRD, Sourcing, Tie-ups etc. Continues to deliver lectures on various management topics in SME segment.Attached to various Mgmt. Institutions for GD/PI for MBA aspirants.BUSINESS ACTIVITIES:

1. Managing Director -- Ultimate Communications Pvt. Ltd.An ISO 9001:2008 Certified MSME Registered Company Providing Solutions in Integrated Security, Automation & Unified Communication.

2. Proprietor – Business & Data Aids Rendering Services like Repairs / Maintenance / Installation / Commissioning / Programming / Inspection / Surveys, etc.

3. Management Consultant in field of Training, Placements, Marketing, Employee Retention/Appraisal, Human Relations, Cost Reduction, Planning & Control Techniques, Sales, Communication, Business Development, etc.

PROFESSIONAL LIFE MEMBERSHIPS:

Bombay Mgmt. Association, Saturday Club Global Trust, Chamber of Small Industries Associations, etc.

SOCIAL ATTACHMENTS: Vanavasi Kalyan Ashram, Vivekanand Kendra, Anandvan, W. I. A. A., etc.

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3. Pranab Kumar Adak. BE, PGDBM. Consultant

An excellent Engineer with proven track record and more than 46 years in the Oil and Gas sector specializing in Offshore and Onshore Drilling Rigs.

Work Experience:-

- Joined as trainee engineer in Damodar Valley Corporation and Served for one year in thermal power station construction.

- Joined Oil & Natural Gas Corporation as apprentice engineer and gained experience in operation and maintenance of drilling rigs.

- Served for 36 year till superannuation in 2001.The areas of expertise includes:

1. Operation, maintenance and major repairs of land drilling and work over rigs for 10 years.

2. Selection and procurement of drilling and work over rigs for five years.

3. Operation of drilling rig abroad (in Iraq) for three years (Independent responsibility).

4. Jack up and rig move operation of offshore rigs 5 years.5. Major structural repairs of jack up rigs (Higher

Technology) for five years. Project Management-

1. Exploration and production activities in oil & gas fields.2. Consultant for installation and operation of platform rigs

on Mumbai offshore platforms for 10 years.

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4. Satish M.Shah, BE, PG Diploma in EDP and CM, FIE, Chartered Engineer. Consultant.

Retired as Executive Director – Operation and Engineering Services of GNFC Bharuch, leading Fertilizers and Petrochemical Plants).

Work Experience:-

37 Years in Design, engineering, construction, commissioning, operation, maintenance and troubleshooting in petrochemical and chemical plants processes.

Functioning Area:

Project Management, Construction, Piping and layout engineering selection of equipment machineries, commissioning, operation and maintenance.

Core Competencies: Knowledge of oil and Gas Industries code Rules 1 Boiler and pressure vessel codes and softwares ASME SEC VIII Div-1, AD MERKBLATT, PVellite, CAEPIPE, CADWORX,2 Petroleum and refinery pressure piping codes

ASME B 31.1, ASME B31.3, ASTM, 3 Pumps, Compressors and turbomachenaries API,ANSI

4 Experience on Asset management Operation and all Engg services (maintenance) and safety related practices in Petrochemical and refinery, power and fertilizers industries.

FMEA, RCM, HAZOP, HAZID ISO 18000 practices in Petrochemical and refinery industries.

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Training and Overseas experiences:

Snamprogetti – Italy Linde Salsan-Munich, Germany for Co separation and air

separation plant. Sulzur -Germany Engineers India,--Shiraz, Iran for commissioning of Fertilizer and

petrochemical plant Vebachemi – Germany. Chemi Linz – Austria. GE - USA Users meet (Fuel Oil Gasification Technology) Nuvopignone -Italy Uraca -Germany Atlascopco - USA Thyseen pumpe - Witten Annen, Germany for high pressure

pumpe Nuvopignone Massa and Pisa plants - ITALY Kobe Steel - Japan for Tricladded Zr lined reactor National Petrochemi- BASARA ,IRAQ Administrative Staff College of India – Hyderabad National Productivity Council – Jammu & Kashmir Indian Institute of Management (IIM) – Bangalore Welding Research Institute – Trihi and Numerous other training

courses attended.

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