Ali El Ali, CEO of Zakher Marine International (ZMI), talks to The Energy Year about momentum in the UAE’s offshore industry, how the net-zero and decarbonisation drive is impacting the marine sector, and the company’s strategy for growth. ZMI provides services to offshore oil and gas and offshore marine construction companies.
To what extent is this net-zero and decarbonisation drive impacting the marine sector and how is ZMI embracing it?
At ZMI we know that the hydrocarbons industry is under pressure to operate sustainably to offset its environmental impact. Thus we aim to offer an unparalleled commitment to helping oil and gas companies, including ADNOC, transition into energy businesses through innovative, comprehensive and reliable offshore solutions to support the global initiative of the net zero coalition.
Supporting this commitment, we offer a diversified and modular fleet that provides the oil and gas industry with efficient solutions for both exploration and production operations. Our fleet of jackup barges, offshore supply vessels and support systems is designed to meet the specific needs of each project, enabling ZMI to provide tailored solutions for local conditions. By having a diverse range of equipment, our team can quickly and effectively deploy a successful solution for every project. This ensures maximum efficiency and cost savings and helps with energy transition initiatives.
In summary, our goals are to shift towards greater energy efficiency and more advanced technology and to ensure that all operations are executed in an environmentally friendly manner, adhering to all relevant regulations on emissions reduction and waste management.
What impact do you see in ZMI’s recent acquisition by ADNOC Logistics & Services?
The recent acquisition ultimately provides a stronger balance sheet and financial strength to the organisation which will support expansion plans. ADNOC L&S wanted to be able to extend its regional footprint and create new opportunities for expansion with an industry-recognised partner, broadening its services to include critical support assets for offshore operations, including ZMI’s maiden offshore renewables project in China.
In turn, ZMI will have an increased capability to provide fully integrated packaged services to cater to a wider customer base and further improve margins. Allied to that we now have more flexibility to develop and extend sales and collaboration channels to customers leveraging our new technology, particularly in the UAE with ADNOC Offshore.
What steps is the company taking to further grow and upgrade its current fleet given the GCC’s future market conditions?
ZMI has the largest jackup barge fleet in the GCC region (and a more than 30% share of the market), with the GCC in turn being the largest and most high-value jackup barge market in the world. This scale is a major KPI for winning large tenders from NOC clients, which means that our recent acquisition of two jackup barges fits well into our growth plans, and is ultimately expected to be the first of many.
The expected growth in the GCC market over the next decade will provide numerous opportunities in other vessel segments – such as PSVs, MPSVs and DSVs – where ZMI can further leverage its existing footprint and relationships. Whilst our jackup barge fleet is effectively the youngest, we are conscious that some of the units in our existing OSV fleet are reaching the end of their useful lifecycle and accordingly we are actively exploring the secondhand market for suitable available assets to replace and complement our existing fleet on an opportunistic basis as well as to support expansion of other operations globally. We are also heavily engaged with various shipyards worldwide, collaborating on design specifications with an emphasis on low-emission fuel types and digitalisation.
What offshore activities are you carrying out for ADNOC and private operators in the UAE and beyond?
All of ZMI’s jackup barges operating in the UAE are directly contracted with ADNOC, with the majority carrying out well service operations to ultimately increase the UAE’s production rates. Maintenance and accommodation scopes that include hook-up, installation services and a variety of crane operations also make up a significant portion of the company’s revenue; these scopes are ultimately facilitated by our high-specification fleet, which includes vessels with large deck space and first-class accommodation facilities.
On the offshore supply vessel side, we currently have the majority of the fleet working with tier-one EPCIs performing a variety of operations including anchor handling activities, supply provision, crew transfer, tow tugs and dive/subsea support services, in turn supporting their brownfield and greenfield scopes for the ultimate owner, ADNOC Offshore.
Currently just over half the ZMI fleet is employed offshore the UAE, with the remainder split between Qatar and the Kingdom of Saudi Arabia. We are proud to say that ZMI continues to play an active role supporting all the largest ongoing GCC offshore projects, including the development of the Upper and Lower Zakum fields in the UAE as mentioned previously, as well as Qatar Energy’s development of its North Field and the huge Marjan oilfield expansion project in the Kingdom of Saudi Arabia, boosting the production capacity of both the Marjan and Berri fields.
Another notable project closer to home that will doubtless utilise a significant portion of our fleet is the Hail and Ghasha sour gas development project, part of the Ghasha Concession. This mega-project is an integral part of ADNOC’s 2030 smart growth strategy and as one of the world’s largest sour gas projects, it will make a significant contribution to the UAE’s objective to become gas self-sufficient and transition to being a potential net gas exporter.
In what ways is ZMI looking to cater alternative types of energy such as offshore wind power?
Windfarm construction projects are complex and typically require a high level of expertise. Many companies lack the resources to handle these large-scale projects, leaving them at risk of costly delays and budget overruns.
We, however, have extensive experience with all aspects of offshore wind infrastructure, including foundation, tower, nacelle and turbine installation as well as HVDC/offshore substation commissioning. This is borne out by the fact that we spent several years collaborating with state-owned China Construction Company to install wind farm turbines offshore, which represented our first foray into the renewables segment.
This ultimately illustrated our ability to identify and execute on opportunities with strong long-term value creation beyond our core GCC market and served as an entry point into this promising global market. It also confirms the fact that our existing fleet is capable of operating in the renewables segment with minimum modification and relative ease.
Curtis Boodoo, assistant professor of utilities and sustainable engineering at the University of Trinidad and Tobago (UTT), talks to The… Read More
François Tack, general manager of Newrest Angola, talks to The Energy Year about how the company’s portfolio of clients evolved… Read More
Hassan Choudhry, CFO of Umm al Hayman for Wastewater Treatment Company (UAH), talks to The Energy Year about the key… Read More
Jacinto Sabino Mutemba, chairman and CEO of Belutécnica, talks to The Energy Year about the company's expanded production capabilities and… Read More
Carlos Firme, CEO of Fortaleza Seguros, talks to The Energy Year about the role the company wants to play in… Read More
Faisal Ayesh, president of Alkhorayef Kuwait, talks to The Energy Year about the growing importance of public-private partnerships in the… Read More
This website uses cookies.