Major Denholm Oilfield investment in the Middle East

Denholm Oilfield Services has recently secured a strong base from which to drive business forward in the Middle East and has exciting expansion plans in view.

Denholm Oilfield Services (DOS) has successfully completed the 80% purchase of the trade and assets of YAM Al Khaleej - the company will now be known as Denholm YAM (YAM). Operating from offices based in Abu Dhabi in the United Arab Emirates (UAE), YAM is a major fabrication company. Feras Muqattash, the owner and founder, retains a 20% interest. The business will continue to be managed by Feras, as Managing Director - supported by Rod Fraser as Regional Business Development Manager and Graham Humphrey as Business Development Director.

Strong track record
YAM was established in 1995 and the key to YAM's success is the ability to provide compact, cost-effective solutions for fabrication and construction work. YAM employs a qualified team of engineers and workers who are professionally trained and experienced in handling fast-track projects, heavy steel fabrication and site installation, for on- and offshore plants, industrial and marine sectors.

Project capability
YAM provides heavy and light structural steel fabrication, process piping, pressure vessels, process skids, and mechanical site services. Their 1000m2 yard is in Mussaffa, Abu Dhabi and it has the capacity for handling around 2400 tonnes of structural steel per year.

Pictured here, is YAM's largest project completed for Technip KTI & Bechtel prior to acquisition - a 110m long exhaust stack for end user Saudi Aramco valued at around US$8m. The contract included procurement, fabrication and load-out onto barges.

Now the team is embarking upon another major project which is due for completion in December this year. Valued at US$7.5m, the contract for Archirodon Construction (Overseas) requires the fabrication of structural steel platforms, painting, load-out and sea-fastening for a GASCO project in Ruwais, Abu Dhabi.

Recently, YAM was awarded the ASME stamp - the technical standard which assures the quality of manufacture and testing of pressure vessels, power boilers and pressure piping - this alone opens up new markets for DOS.

Expansive plans
On 16th May, the current directors - Graham Potts, Graham Humphrey, Rod Fraser and Feras Muqattash - gave an introduction to key employees on the merging of DOS and YAM Al Khaleej. The team were also presented with an overview of the strategic plans for the next five years.

Plans include the creation of a best-in-class, purpose-built facility on a 80,000m2 greenfield site which has 220m of quayside. The vision is to develop 12,000m2 of the site into covered workshops and 2,200m2 into purpose-built office facilities. This will give us an annual capacity of some 14,000 tonnes, as well as the facility for load-out of heavy structures directly onto barges. We will also have the ability to carry out ship repair and rig upgrades from our own quayside as it has an 6m draught, allowing sizeable offshore vessels to moor alongside.

With these exciting plans, comes the opportunity for employees to develop and diversify - in the next two years we envisage growing the team, from the current 160 personnel, to a workforce of around 800 to support our plans.

Future vision
The acquisition is an excellent opportunity for DOS to expand its fabrication ability, location and client base in both offshore and onshore oil and gas sectors. YAM is ideally placed to take advantage of a committed planned spend of some US$360bn in the area over the next five years.

Our objective is to grow the business to US$50m turnover by 2012, encompassing all of DOS disciplines, with the overall strategic plan of utilising the new facility for further growth in the Middle East - effectively creating a Middle Eastern hub for DOS activities.

Meanwhile, we warmly welcome Feras and his team to the Oilfield Services Division and look forward to YAM becoming an integral part of DOS' core activities and sharing in our future prosperity.