Caspian Growth for Scottish O&G Co Reaches Milestone
A Scottish oil and gas services company has reached a major milestone since setting up in Kazakhstan in 2004.
In five years, qedi has notched up a turnover of £10 million in Kazakhstan and is on track to grow this by 75% in the next 12 months, bringing the total number of jobs to 300, of which more than 175 will be ex-pats.
The growth has been underpinned by a contract on Kashagan's Early Oil Project, worth around £19 million. Under this on-going contract, qedi provides specialist engineering resources and its innovative completions system -- Go Technology -- which is a suite of web-enabled project management tools.
qedi specializes in providing technology and services, primarily in the areas of onshore and offshore completions and commissioning, to the global oil and gas industry. However, their business in Kazakhstan began by clients seeking their assistance in resourcing major projects such as Tengiz and Kashagan.
Martyn Canham, qedi's managing director in Kazakhstan, explained, "We identified early in 2006 the challenges surrounding resourcing in Kakakhstan in terms of stringent local content and compliance requirements. We very quickly realized that if we were to offer tangible, practical services we could address these challenges much more effectively.
"Last year we had a team of 35 completion engineers in London and they transferred from our UK operation to Kazakhstan. From there, we continued to build on our national resources and developed qedi to have three business streams -- integrated resourcing solutions for both national and foreign professionals, our completions and commissioning capabilities including Go Technology, and small package engineering services."
qedi invested £3.25 million in setting up a training school along with a local partner -- Caspian Technical Resources (CTR). The training school has already trained 500 Kazakh nationals and qedi is responsible for placing 200 of these in sustainable oil and gas jobs.
"The training school was the foundation for building solid relationships and gaining the market intelligence and brand recognition we needed to develop business in Kazakhstan. It enabled us to offer a seamless approach to complying with local content issues, looking after the welfare of ex-pats and providing skilled nationals to these major projects.
"By investing in and delivering training, we have positioned ourselves to be the provider of choice to meet the increasing demand for services in commissioning in Kazakhstan."
The company is now selling its interest in the training school to its joint venture partner, CTR, to focus on its core business.
On target to reach a turnover of £40 million this year, qedi is aiming to become a global leader in technology-led engineering solutions, predominantly commissioning.
Established in 1987 as a consultancy focused on HSEQ and recruitment for the oil and gas industry, qedi is already working on 45 major capex and operational oil and gas projects in Australasia, the Caspian, the Gulf of Mexico, West Africa and the North Sea.