THIRTY years on from their first appearance, floating production, storage and offloading (FPSO) systems still dominate the offshore market, and are unlikely to relinquish their position any time soon.
According to a report by industry analyst Douglas-Westwood, in the period leading to 2012, more than $40 billion is expected to be spent on 123 floating production systems (FPS), with about 95 FPSOs to be installed around the globe. This represents significantly greater prospects for the sector and is anticipated to see particular growth in floating installations in Asia, Australasia, South America and Western Europe.
Global FPSO expenditure is largely predicated on whether fields are to be developed by redeploying or rehabilitating existing units, converting additional tankers or commissioning new-builds. The UAE FPSO fabrication industry has been following the above trends with a steady activity increase over the past five years. “FPSO’s dominance is nowhere near being over yet and this is a superb long term opportunity for companies like Auld Alliance Trading, which is supporting its regional client requirements for special steel and piping packages,” says Thomas Viallaneix, managing director, Auld Alliance Trading.
According to him the steel piping market has a secured double digit growth progression for the coming five years in this FPSO industry. “This represents for the global piping market a $2 billion niche market. In GCC, most of the fabricators are based in the UAE; hence, this represents a $500 million market for piping only. If we include the structural steel requirements, the figure is well over $1 billion,” Viallaneix adds.
Auld Alliance Trading was established in July 2007 in the Jebel Ali Free Zone, in Dubai, UAE. The company supplies steel and piping packages to the offshore industry with the main focus on the regional floating production, storage and offloading (FPSO) fabrication industry. It supplies structural plates in DNV, API, ENV grades and piping in Carbon steel PSL2 up to X70, Stainless Steel, Alloy Steel and Nickel Alloy.
The companies’ co founder is James Long, who has been supplying the FPSO industry with large scale projects on scaffoldings, fire-protection coating, man-power, electrical and all sources of FPSO related material. For the past 10 years, the UAE top oil and gas fabricators have been moving from general fabrication to a highly specialised FPSO fabrication including all related aspects such as turrets, top-sides, mooring systems, buoys, accommodations, etc.
While the Gulf onshore steel supply market is somehow fully saturated with hundreds of suppliers, traders and manufacturers, Auld founders found out two years ago that the offshore industry was in need of dedicated trading companies which could offer them complete steel/piping packages for their large scale project requirements. “Our job does not stop at trading as we offer full technical expertise, global procurement, expediting and shipping support to the different regional locations. Our back-bone is an in-depth knowledge and support from the global steel and piping manufacturers which are keen to develop this niche market along with our local expertise,” says Viallaneix.
“The offshore industry quality standards are the most stringent ones in the oil and gas industry. This is why we source only from the mentioned countries which are used to offer and preserve the required quality expected by the offshore industry, says Viallaneix.
The company is currently supplying Chevron-Texaco for their Frade FPSO and Talisman with their Mopu Stor. Both projects are currently being fabricated in the UAE.
