local content forum 2009 march 23, 2009 localization of complex industry experiences, success...
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Local Content Forum 2009 March 23, 2009
Localization of Complex Industry
Experiences, Success Factors, Challenges & Lessons Learned
Abdulmohsen Almajnouni
VP, Saudi Operations
Alkhorayef Petroleum Company (APC)
March 23, 2009
Local Content Forum 2009
Eastern Province Chamber of Commerce
Alkhorayef Petroleum Company (APC) Prospective
Local Content Forum 2009 March 23, 2009
Outline
IntroductionAPC Product & ServicesAPC 2015 VisionLocalization, Technology Transfer, and R&DExperience and AchievementsSuccess FactorsChallengesLesson LearnedFinal Remarks
Local Content Forum 2009 March 23, 2009
Introduction to Alkhorayef Petroleum Company (APC)
APC has two world class manufacturing facilities: WSP (Electrical Submersible Pumps) and WEPCO (Stainless Steel Foundry)
700 employees in Saudi Arabia, Kuwait, Rest of Middle East, Asia-Pacific, Russia, and Africa
APC active in the Oil Business since 1988
Core business areas are Artificial Lift Contracting, Supply of Re-Engineered Stainless Steel Components, Well Services, and the Design, Financing, Construction, Operation and Maintenance of Specialty Oil Production Projects including Water Injection, Filtration and Early Production Facilities
Our Customers are the Producing Departments in major oil companies such as Saudi Aramco, Kuwait Oil Company, Khafji Joint Operations, Chevron, National Oil Companies etc.
Revenue $ 150,000,000 annually
http://www.alkhorayefpetroleum.com/
Local Content Forum 2009 March 23, 2009
APC 16 years sales growth
0
100
200
300
400
500
600
Sales SR Millions
Local Content Forum 2009 March 23, 2009
Saudi Arabia Saudi ARAMCO Khafji Joint Operations (KJO) Riyadh Water Authority
Kuwait Kuwait Oil Company (KOC) Saudi/Kuwait Joint Operations (JO)
Oman (PDO) Sudan
Greater Nile Petroleum Operating Co. (GNPOC) White Nile Petroleum Operating Co. (WNPOC) PETRODAR
Iraq (SOC) Iran (NIOC, TOTAL) Libya
AGIP, AGOCO, OMV REPSOL, SIRTE, CPTL VEBA, WAHA, ZOC
Malaysia (PETRONAS) Indonesia (Sinar Timur Engineering, Conoco-Philips) Russia (Lukoil, Conoco-Philips)Nigeria (Sterling)
Current Customers & Contracts
Local Content Forum 2009 March 23, 2009
VenezuelaColombiaArgentina
Brazil
Germany
NigeriaEgypt
AlgeriaIndonesiaVietnam
Japan
APC International Locations
Facilities 2008
Tripoli, Libya
Heglig,Sudan
Medan, Indonesia
Riyadh,KSA
Amghara, Kuwait
Ahwaz, Iran
Wafra, Kuwait
Dammam,KSA
Shanghai, China
Moscow, Russia
Local Content Forum 2009 March 23, 2009
WSP / Alkhorayef
ESP Industry Experience
In ESP business for over 20 yrs.
Conducted over 20,000 repairs
Only ESP Company with expertise to repair all brands
Developed Own Product Line
Awarded ESP contracts in excess of US$1,000 Million
Local Content Forum 2009 March 23, 2009
Manufacturing Facility - Dammam
Commissioned Q1 2006Total Land Area 15,000 Square Meters5,525 Square Meters of Covered Space4,475 Square Meters of Yard & Warehouse SpaceFully Equipped to Manufacture ESP Systems Ranging From 400 BPD/8 HP to 39,000 BPD/1,350 HPThe Plant Includes:
EngineeringQA Lab.Inspection & TestingWarehousingMachinesMotor Winding AssemblySandblastingCorrosion CoatingFinishing & Logistics
Local Content Forum 2009 March 23, 2009
ISO 9002: 1994BSI Certification:1996ISO 9001: 2000BSI Certification: 2003
Maintain Highest Quality Standards Apply to Every Aspect of Our Business Quality Policy Executed Through Quality Manual Quality Manual Supported by QADs & QAPs Monitored & Evaluated to Ensure Conformity
WSP / Alkhorayef Facilities
Quality Assurance
Quality Policy
Quality Assurance
Manual
Quality Assurance Directives
Quality
Assurance & Tes
t Instructions,
Manufacturing Proces
s Instructions,
Drawings
Local Content Forum 2009 March 23, 2009
Manufactured Products
Multi-Stage PumpRotary Gas SeparatorMulti-Chamber ProSeal SectionsThree Phase Electric MotorWestronic Motor ControllerSwitchboard (Fixed Speed Drive)VSD (Variable Speed Drive) & Skid Mounted
Local Content Forum 2009 March 23, 2009
Multi-Chamber ProSeal SectionsRotary Gas SeparatorMulti-Stage Pump
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Switchboard (Fixed Speed Drive) Three Compartment 4800V, 200A
Westronic Motor Controller
Three Phase Electric Motor
Local Content Forum 2009 March 23, 2009
VSD (Variable Speed Drive) Skid MountedVSD (Variable Speed Drive)
Local Content Forum 2009 March 23, 2009
Total Plant Capacity – 11,647 pcs. per yr. (152 strings per mo.)Plant Currently Operating @ 36% of Total Capacity – 4,159 pcs. per yr. (54 strings per mo.)
Plant Capacity
Local Content Forum 2009 March 23, 2009
Lean Manufacturing System
Toyota Production System (TPS)Porche, Boeing, Nike
Customer focused Goals of Lean
Improve QualityEliminate WasteReduce LeadtimesReduce Total Costs
Local Content Forum 2009 March 23, 2009
WEPCO CONCEPTS
Understanding original design,
Understanding process conditions,
Applying most advanced engineering techniques and metallurgical expertise,
Fully documented processes,
BETTER THAN NEW components for enhanced operational performance.
Local Content Forum 2009 March 23, 2009
Stainless Steel Casting Foundry
Production Model
Machining & Finishing
MouldingMetallurgy Laboratory
&Corrosion Laboratory
Quality AssuranceMechanical & Chemical Tests
Final Product tothe end-users
Engineering Review
WEPCO FULL INTEGRATION OF PRODUCTION CHAIN
Local Content Forum 2009 March 23, 2009
APC 2015 Vision
World-class supplier of ESPsReverse and Re-engineering of Pumps and PartsTop-notch Foundry and casting facilityTop supplier of Specialty Chemicals (Drilling fluids, Stimulus products, Oilfield chemicals, Refining and Petrochemical and Water Treatment chemical programs)All associated services to Oil and Gas
Local Content Forum 2009 March 23, 2009
Localization & Technology Transfer
Started as a major agent/distributed of the top ESP Companies in the WorldDeveloped strategy & vision to manufacture ESP in SaudiBuilt workshops and repair centersRecruited the top expertsPurchased motor winding technology and associated systemsDeveloped our own technologies
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Provide technology of international standards without compromiseDevelop new products continuously to address market demand and satisfy our customersLead the industry in product quality, reliability and innovation
Engineering & R&D Responsibilities
Local Content Forum 2009 March 23, 2009
Engineering and R&D Experience
9 managers with a total of 201 years experienceAvg. experience level per manager is 22 years26 personnel with total of 467 years experienceAvg. experience level per employee is 18 years
Local Content Forum 2009 March 23, 2009
Experience and Achievements
Manufacturer of top notch ESPs and Foundry of Pump parts in Saudi ArabiaCompeted with the top players (SLB, BHI, WFD, Wood Group, etc)Established R&D Facility in Dammam and Shanghai, ChinaImplementation of LEAN ProcessISO certificates
Local Content Forum 2009 March 23, 2009
Experience and Achievements
Penetrated Gulf, ME, Asia, Russia, and AfricaDiversity of workforceLocalization of workforceDevelopment of new productsContribution to SPSP
Local Content Forum 2009 March 23, 2009
Saudi Petroleum Services Polytechnic
Part of APC to support Saudi Arabia local economy, we have signed an agreement with Ministry of Petroleum to contribute SR 1,500,00.00 for the establishment of the
Part of this commitment, APC will be sponsoring 50 young Saudi at the Institute, who are currently studying at the Institute since September 2008. These candidates will be signing their employment contracts with the InstituteAPC’s Chairman vision to localize our workforceGraduates of the Institute will be distributed in various locations between the operations and plant.
Local Content Forum 2009 March 23, 2009
Success Factors
Mission, Vision, Determination, and Buy-inShare-holder and Board of Directors SupportRecruitment of right resourceInvestment in HRVery ambitious Saudization ProgramLocal Economy Support by Saudi Aramco, SABIC, SWCC, SEC, etc.Availability of infrastructure to manufactureOverhead Control
Local Content Forum 2009 March 23, 2009
Challenges
Achieving a level of excellence that surpasses that of the International Oil Field CompaniesIdentifying the right resourcesComplexity of the IndustryR&DTransferring the knowledge and “know-how” to the localsSupply Chain Management
Local Content Forum 2009 March 23, 2009
Lesson Learned
Comprehensive marketing strategyEngineering and R&D Competition with International Service Companies is more difficult locally compared to overseasAugmented support of Local Companies (psychologically, financially, strategically, and logistically)Goals can be achieved by hard work, determination, and strategic planningLocal Saudi and ME markets can accommodate more local manufactures More alliance and partnership within Saudi Companies is needed more than ever to compete with international Companies
Local Content Forum 2009 March 23, 2009
Final Remarks
APC achieved its goals through vision, determination, local support, and desires to make itSaudi and ME market is big enough to accommodate more local factoriesInternational Companies should partner to localize and transfer technology in-house Major local Customers should augment supports to Local ManufacturersMore collaboration and partnership is needed to compete in the real world
Local Content Forum 2009 March 23, 2009
Thank You