— Samik Mukherjee, MD & Country Head, Technip India
Technip in India is a 100 per cent wholly owned entity of Technip France and brings in strong expertise in the onshore fields of refining, petrochemicals, LNG, fertiliser, and oil and gas, as well as offshore areas of process platform and subsea engineering. Samik Mukherjee, in an email interaction with Sandeep Menezes, reveals his investment outlook for the Indian oil and gas industry.
Most investment plans are on hold until there is more clarity regarding government policies. How has this scenario impacted EPC service providers?
With energy being a major driver for the Indian economy to grow, we see a huge potential in investments taking place in the exploration of oil and gas and coal. We can also see investments in new refineries and expansions, and integration with petrochemical units and LNG terminals.
However, investments in fertilisers, coal gasification, coal to liquids, power and nuclear are expected in the future based on the government policy framework associated with these segments. Further clarity on natural gas pricing could bring in more upstream E&P investment and lead to further EPC contracts.
It is evident that the last two years have not been so good but we expect improvement next year in terms of the EPC prospects. Most of our clients in public and private space are keen to invest based on the growing domestic demand and are optimistic about a stable and positive policy environment.
We are positive about EPC projects in India as clients are looking for single point responsibility under EPC contract which can cover all their risks in terms of project cost and the crucial project schedule. Technip is one of the premier EPC companies with the strength of 2,800 people in India among three offices, Delhi, Chennai and Mumbai. Our mission is to deliver safe and successful energy projects across the world for the benefit of our stakeholders. We maintain that focus whether faced with the biggest of challenges or the smallest of details.
Internationally, there is a general trend of oil majors keen to discover oil and gas from deep offshore. But service conditions are severe in terms of temperature, pressure and metallurgy.
Demand for energy (oil and gas) is growing exponentially. In many countries, traditional sources of oil and gas (onshore and shallow water) are on the decline. Large oil and gas deposits have been found in many parts of the world in deep offshore (depths ranging from 300-3,000 metres). Therefore, there is no option but to go into challenging environments and extract oil and gas. The technology and capability of hardware and the installation assets required for this deepwater segment have developed to meet the growing demand to extract oil and gas in a safe and responsible manner.
Technip has developed many technologies and also has multiple assets e.g. factories to produce umbilicals, flexible pipes, spoolbases and a fleet of installation vessels for providing solutions in deep water. The ‘Deep Blue’ is one of the most advanced pipelay and construction vessels of subsea industry. It has been designed to provide the best solution to develop deep and ultra deep fields at optimised costs.
In the early 1970’s, Technip pioneered the Flexible pipe technology. For now 40 years, our high pressure flexible products have provided offshore operators with reliable and efficient solutions worldwide.
How has the entry of foreign contractors like Technip changed the dynamics across the Indian oil and gas sector?
Technip brings the latest technologies and safe working practices that are being deployed in all our projects worldwide. This has improved the visibility of local clients on the importance given to HSE practices in their project execution. There have been significant developments due to global presence of Technip and to achieve that we have developed the following:
- HSE Leadership programme ‘PULSE’ deployed for all Technip projects worldwide and now extended to Indian clients projects team as well. We have deputed some of our personnel in India to Technip international project sites to imbibe the best practices in HSE. We have received lot of awards in HSE for our projects in India.
- Technip is a very strong project management company. We have executed/executing mega projects and demonstrated our capability having latest proven programmes which can integrate the whole project cycle as engineering, procurement and construction seamlessly. In addition, electronic database management coupled with workflow management systems and operation excellence with project management, schedule and cost also helps us to deliver big complex projects with an optimal utilization of resources.
- A significant thrust is on risk identification and mitigation is a key of success. Global procurement is an integral part of projects execution in India and elsewhere which brings price competitiveness and value for money to the client.
- Capability to train, monitor and manage local construction contractors to ensure latest techniques are applied in planning, sequencing of construction activities leading to high productivity in a safe working environment.
- Bringing world-class technologies in India and providing solution from concept to commissioning in the energy sector. The recent projects being done in Reliance Industries Ltd, License and EP services for an off gas ethylene cracker; JBF – EPC project for a world-scale PTA plant using alliance partner BP’s technology; HPCL Vizag – LEPC project for the hydrogen plant using Technip’s technology; ONGC – EPC project for HRD process platform with Technip’s float over technology; manufacturing ultra low NOx burners in our own workshop in India for export projects; we are involved in execution of large international projects with Technip Group in subsea, offshore and onshore segments. This is providing vital exposure and experience to our engineers which help to improve our delivery capability for local projects.
As a leading contractor in India’s oil and gas sector, what are the potential business opportunities in future?
Our core competence is in the oil and gas sector. We see business opportunities in new refineries and expansions, LNG regas terminals, fertilisers and offshore process platform projects. We are also closely watching fertiliser projects but will depend on new policies by the government. We are also exploring opportunities in mining and metals, waste to energy and solar sector.
Technip is keen to participate in the new offshore and deep water developments. As a market leader with manufacturing assets in India, Asia Pacific and in other countries, Technip is looking into opportunities to execute projects which can provide a strategic cost, schedule, reduced risk advantage to our clients. We are continually developing our resources and competencies to deliver world-class projects for our clients in India.
Tell us about Technip’s future strategy in India.
We have a vision of becoming the top EPC company in India and be a partner of choice for the many large operating businesses in India (specifically in refining, petrochemicals, fertiliser, chemicals, LNG regas terminals, offshore and subsea). Also, we are moving forward to develop our plans to be present in nuclear, life sciences and renewable segments.
With acquisition of erstwhile Stone & Webster technology arm, we bring an enhanced portfolio of world-class technologies in refining and petrochemicals.
Technip is working to become a strategic partner to the country in providing economically feasible solutions for the execution of projects in the development of the deepwater and LNG sector. Technip Group’s rich experience in the execution the world-class projects like the biggest LNG trains built in Qatar, floating LNG project in Australia, and ultra deepwater projects in West Africa, Gulf of Mexico and Brazil, are available for such projects to be developed in India in near future.
With the new gas reservoirs getting deeper, major subsea field developments are becoming a critical part of future energy development in the country which is Technip’s future business targets.
To achieve this, we will leverage our technology portfolio, our process capabilities, mega project execution capability, our strength of 2,800 personnel in India, and our new fabrication facilities. Technip is looking at India as a growth market and is focused to be a leader.