Richard Janmaat, vice president of Stork Power Services Middle East, speaks to Pipeline Magazine about the turbo compressor maintenance industry. As low oil prices pressure spending, client schedules for maintenance are de-prioritised, sending an alert to plant operators.
What is the general outlook for the maintenance on compressors?
The current market conditions have forced asset owners to postpone and/or cancel maintenance as part of their cost-reduction initiatives. On the short-term, this will reduce the total maintenance spend. In the mid-term, I see an increased number of unexpected and corrective maintenance activities due to the reduction of preventive maintenance. In general, the preventive maintenance spend will most probably stabilise in the mid-term.
What impact are low oil prices having on demand for your products and services if any, and how are you dealing with that?
Due to the current low oil prices we have seen a drop in demand for maintenance and parts as clients deal with the market conditions. Clients are looking for organisations that can reduce their maintenance and parts costs and Stork Oryx Turbo Machinery Solutions is ideally positioned to deliver this. We offer the flexibility to execute projects with original parts next to our position as an Independent Service Provider (ISP). We provide a lean organisation that can deliver services and parts at similar quality at an attractive price, depending on the clients’ requirements.
In the USA and Europe, the trend within asset owners to more balance the sourcing of equipment between OEMs and ISPs has already occurred in the last decades. In the Middle East region, this trend has started and I am sure we will see more and more customers opening up for ISPs. This will give ISPs a larger market share as they typically offer more creativity and tailored solutions.
What is the competitive edge that your company has over other suppliers for similar products and services?
First of all, Stork was acquired by Fluor Corporation in March of this year. The combination of both global organisations opens up a wealth of innovations and expertise which is of benefit for every client. Secondly, we are an organisation with over 185 years of experience in rotating equipment. In Europe alone, we have four locations and over 300 colleagues working within the rotating equipment business. This gives our Middle East operations immediate access to a large group of high level engineering, project management, manpower, as well as in field- and shop services.
Next to our services and engineering know-how, we have in-house capabilities to design and manufacture a large range of critical spares which gives us a competitive advantage over other ISPs as we can deliver the full project scope. A number of Stork’s global key customers are amongst the partners who have recently opted for this construction.
What role does the Middle East play in your global business?
The Middle East region is one of our main developing markets for rotating equipment services, particularly in the oil & gas and energy production installations. In 2013, we established a joint venture with our partner Oryx Engineering Solutions to provide local rotating equipment solutions at client locations and in our state-of-the art workshop. This has led to growth in long term service agreements, complete overhauls and innovative solutions during major turnarounds in recent years and we look forward to a successful future in the Middle East region.