Technip in India is a 100 per cent wholly owned entity of Technip France and bring in strong expertise in the field of Onshore – Refining, Petrochemicals, LNG, Fertilizers, Oil & Gas; Offshore – Process Platform and Subsea Engineering in India.
Samik Mukherjee – MD & Country Head, Technip India told Sandeep Menezes that the company is moving forward to develop its plans to be present in Nuclear, Life Sciences and Renewable segments.
Excerpts from the interview:
What is Technip’s future business 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, Fertilizer, Chemicals, LNGRegas 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, Ultra deep water 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 of gas reservoirs getting deeper, major subsea field developments are becoming a critical part of future energy development in the Country which are Technip’s future business targets.
To achieve this, we will leverage our Technology portfolio, our process capabilities, mega project execution capability, our strength of 2800 personnel in India and our new fabrication facilities. Technip looking at India as a growth market and is focused to be a leader.
Why has Technip decided to focus on deep sea exploration instead of shallow water projects?
Only few companies in the world can afford to make huge investment required in developing technologies and building assets for the exploitation of oil & gas from deep to ultra-deep (beyond 2000 meters) water depths. Technip is one of them and it is our strong commitment to remain in the forefront of developing technologies for the upstream oil & gas sector in the deepwater segment.
So far shallow water projects are concerned; we believe that there are many contractors who are able to supply the services at low cost and limited differentiation to the clients. If the process complexity is high and needs high technology installation methodology due to challenging environment conditions, then we will be definitely interested even in shallow water segment to add more value and certainty of outcome to our clients. Technip is interested to provide high technology involved and safely executed projects that bring benefit to both the Client and the Contractor.
There were recent reports about Technip intending to consolidate its activities in India. Comment.
In the beginning of 2012, we have taken an initiative of creating “One Technip in India” to enhance the synergy of operations from our various entities in India to provide a stronger and consistent value proposition to our customers. Now, we are formally and legally one Technip entity as “Technip India Limited” comprising of our three operating centres in Delhi, Chennai and Mumbai with a combined strength of 2800 people.
The goal of One Technip is that the Business organization in India becomes stronger and synergised, and the Operation centres focus and grow in their areas of excellence and to enhance the growth opportunities to all our employees.
In addition the combination of competencies, resources, financial strength of the operating entities in India will increase our net worth and capability to qualify for and to execute bigger projects in India. Also it will give a consistent and strong brand image/visibility to all our customers.
Our aim is to leverage the strengths from each others expertise, competencies and references to help Technip in India to grow further and to qualify for larger size projects in all 3 segments (subsea, offshore and onshore).
Will export revenues of private Indian petroleum companies be impacted due to refining capacities being added in West Asia, China and other countries? Also we don’t usually witness in the world – crude being imported and refined products exported. Comment.
True, the world is seeing a major increase in refinery capacity addition, especially in China, Saudi Arabia, Kuwait, UAE, South America and in Russia. At the same time, increase in global refining capacity is shutting down inefficient units that are high on the cost curve. The trend in the refining industry is to be closer to the end customers.
Although the situation may appear difficult for Indian private refiners, there are a few factors that Indian private refiners are using to keep their margins intact.
• Reducing cost of oil import by having long term contracts; sourcing opportunistic crudes
• Cost competitiveness in plant operation, energy, maintenance etc.
• Integrating Petrochemical units with existing and new refineries
• Targeting markets for exports where Inefficient units have shutdown
The above steps will ensure that private sector refineries in India are well equipped to face the upcoming increase in global refining capacity.