A key pump supplier for Kuwait’s upstream

Kuwait

Adeeb Al Awadhi, general manager of the Petroleum Services Company (PSC), talks to The Energy Year about international partnerships that bring new technologies to Kuwait and the boom in demand for pumps set to come from new oil and gas projects. PSC is a Kuwaiti engineering equipment and services company specialising in oil and gas, power and water treatment.

How would you describe PSC’s footprint?
In the upstream segment, our focus is on equipment sales and aftermarket services and we are one of Kuwait’s major suppliers. We represent approximately 60 companies in Kuwait, primarily from Europe, such as Trillium Flow Technologies and the ATB Group. These companies are known for their excellence and, despite the higher price point of their products, we have successfully introduced them to KNPC and KIPIC [Kuwait Integrated Petroleum Industries Company].
We also handle product commissioning and provide spare parts, partnering with reputable international companies. Trillium is currently involved in a clean fuel project and our engineers are helping with the commissioning, eliminating the need for them to bring in someone from abroad to do the work.
In 2018, we established a service centre for valves and pumps, and we also specialise in blowout preventers for upstream operations through another dedicated centre. We have ISO certification and are in the process of becoming certified by API as well.

Could you provide some details about the company’s recent business in the oil and gas sector?
We have engineering teams stationed with key clients such as KOC, KNPC, PIC [Petrochemical Industries Company], Equate and KIPIC. Recently, we secured a three-year contract with KNPC worth KWD 4.9 million [USD 15.9 million] for the supply of control valves to the Mina Abdullah and Mina Al Ahmadi refineries, as well as a USD 30-million E&P contract to supply ERD catalysts.
We also deployed two ATB reactors that are currently operational at a refinery. At 1,000 tonnes each, they are the largest in Kuwait. To obtain them, we secured financing of EUR 134 million [USD 143 million] from the National Bank of Kuwait.
Another recent engagement was in JPF-4 [Jurassic Production Facility 4] and JPF-5, where we supplied turbines to SPETCO and Jereh for a total value of around USD 26 million. We have also supplied 23 gas turbines to KOC, or around 50% of the units they have.

Has PSC entered into any new service or technology partnerships recently?
To reinforce our services offer, we recently became agents for an international company specialising in engineering services for the oil and gas sector. This venture is an opportunity to deploy their engineers to address challenges that KOC or other companies may face. Quality is paramount in the oil and gas sector and our clients are discerning, but we are confident in our offerings.
On the technology side, we’re considering HVOF [high-velocity oxygen fuel], a coating for pump shafts that prevents corrosion and increases durability. It’s already available in Qatar, and we plan to introduce it in Kuwait in the next two years. We also plan to acquire a balancing machine for pump repairs.
We recently established a partnership with a company in England specialising in sodium batteries for uninterrupted power supply systems. We are their exclusive distributor in Kuwait and are currently replacing KOC’s existing batteries with these new ones. It’s not a profitable operation for us, but we don’t mind. KOC won’t need to replace these batteries for another five years.

How do you approach aftermarket services?
In the oil sector, after machines have been installed by principals or subcontractors, they are often not subjected to regular maintenance. Six years ago, we recognised this gap and decided to address it by offering comprehensive support services. For example, with pumps, we provide on-site servicing and have a dedicated centre for repairs as well. We will send the equipment abroad if necessary, but so far we’ve managed to handle all the repairs in-house.

How does your business with the K-companies typically come about?
We are primarily reactive, as our role is to respond to the requirements of entities such as KOC and KNPC. However, given our extensive involvement in the oil sector, we often have insight into their plans and can anticipate their needs to some extent.

What are your expectations for business in the near future?
Regarding trading, production at the Jurassic fields will bring demand for pumps and we are well positioned to capture that business. The Al Zour Refinery project should also generate sustained demand for pumps. We have already supplied more than 200 units to the project. In the next five years, we want to localise the assembly of control valves and pumps in Kuwait and support KNPC in the management of their safety relief valves.

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