A window of opportunity in Kuwait’s oil and gas sector

Kuwait

Waleed Dessouky, general manager of the Boodai Trading Company, talks to The Energy Year about how Kuwait’s oil production targets are good for business and the challenges of meeting the demanding equipment requirements of oil and gas projects. Boodai Trading Company is a trading house that caters to the civil construction, infrastructure and oil and gas sectors.

How important is the energy sector for your business?
While oil and gas projects are not our primary focus, our engagement in the sector has significantly increased in the past two years. In fact, most of our equipment supply has been directed to oil and gas contractors. Our clientele includes major players in the oil and gas, road construction and infrastructure sectors.
We currently have equipment deployed in the joint operations with collaborators. We can see that the oil and gas sector is investing to meet the country’s production capacity target of 3.2 million bopd in the next couple of years and 4 million bopd by 2035. Such projects are gaining visibility, and contractors are really supporting the plan, which is why we are focusing more on the sector.

Can you walk us through the company’s main oil and gas projects?
We have been supplying mobile cranes, moving equipment and power generators to oil and gas players. In 2023, we signed a five-year contract with a main contractor to supply, install and support generators to power ESPs [electric submersible pumps] deployed across various locations.
We have been working with this contractor since the issuance of the RFQ [request for quote] to understand the type of generators needed for their pumps and what other equipment they might need for their operations, such as extra fuel tanks with remote systems to measure fuel gauges. Rig operations are extremely sensitive because if you are working on a pump and it breaks down, it is going to affect production and cost a lot of money. We take that responsibility, and that is not something many trading companies will offer.
Finally, we have also taken part in a soil remediation project, the first of its kind in Kuwait, supplying different contractors with road tankers for transporting water and excavators for earthworks.

What are the company’s key strengths and what opportunities do you see to make your business more competitive?
Traditionally, we focused on supply, but we plan to begin offering long-term operations contracts to serve projects with equipment, vehicles and spare parts. We see it as an interesting window of opportunity because sometimes contractors have an obligation to use new equipment, and we can make that investment for them by supplying new equipment under maintenance for the duration of the contract.
The keys to investing in new equipment for the long term are credibility and finding the right partner, and among BTC’s strengths are the premium products and after-sales services we provide. We have invested significantly in those areas. We also have a wide range of spare parts and mobile workshops to work directly on sites.
We provide very customised solutions to our oil and gas customers because even though equipment might be available, mobilising equipment and manpower sometimes requires special arrangements and qualifications. All the equipment we supply is equipped with a remote monitoring system, which allows us to reduce downtime in case of breakdown. We can rectify the fault faster and increase uptime significantly.
We have highly qualified staff to provide support services for oilfield operations because, in an oilfield, you never know what you might need on short notice. We have invested to guarantee that our spare parts can be delivered quickly, and we have standby units as well. In short, we are very proactive in ensuring that operations run smoothly and efficiently.

How does BTC meet the demanding standards of the oil and gas sector?
We are always looking for the latest technology to reinforce our offerings with the most advanced digital solutions that can be applied to operations. Drawing from my two decades of experience in the GCC, I have witnessed first-hand how large entities consistently set the benchmark for innovation across various domains, from computing to equipment, and we align ourselves with that.
Whether it is by optimising equipment to enhance uptime or by reducing fuel consumption and downtime, our goal is to provide solutions that not only meet but exceed industry standards.
As part of our commitment to sustainability, we are also mindful of environmental concerns. This year we started transitioning to Euro 5 engines in our trucks to keep up with evolving regulations and to minimise our ecological footprint.

What is your strategy to advance BTC’s business model and meet demand more effectively?
We are fully aware of the importance that the oil and gas sector has in Kuwait and the region, and we are working to penetrate it further. We are already a registered equipment supplier, and we are in the pre-approval process to become an equipment service provider.
We are targeting customised services such as long-term operational contracts because few companies can provide them. We aim to be with the contractors from the very beginning, taking full responsibility for the trading and supply aspects of projects, which is not easy because trading has become very competitive. Low-cost products are flooding the market, and that makes selling premium products more challenging. To lead the industry, our focus is on enhancing the total cost of ownership.

What are your plans to lead the company to its next development phase?
We established a five-year strategic plan in 2021 when the world was recovering from the pandemic and economies were aggressively trying to get back to normal. We have experienced significant growth since then. Our top-line revenue has increased dramatically, and we are considering opportunities in different sectors, focusing on the retail and consumable segments. Our vision is to turn BTC into a group of companies; we want to further diversify our core business and establish new companies dedicated to offering high-quality specialised products and services.

Read our latest insights on:

• Kuwait