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Interview

Eng. Mohamed Abdel Rahman Hathout – Chairman and CEO, ENPPI, Egypt

23.05.2017 / Energyboardroom

Eng. Mohamed Abdel Rahman Hathout, Chairman and CEO of state-owned Engineering for the Petroleum and Process Industries (ENPPI), highlights the mandate he was entrusted with at his appointment, ENPPI’s track record of successful projects in Egypt and internationally, and their strategy for diversifying their market and products scope.

Eng. Mohamed, you were appointed around six months ago as Chairman and CEO for ENPPI. What mandate were you given to deliver?

“Egypt delivers the biggest skilled workforce base within the MENA region, so ENPPI as an Egypt-based company has been continuously injected by skilled talent, along with the advantage of having one of the most competitive man-hour rates in the world.”

I had to value many elements in our business strategy:

Focusing on company vision and mission: everyone, at every level of the business, needs to understand the company’s vision, values and mission. Taken together with other related issues such as company culture – the way things are done – and strategy, these form the firm’s raison d’être. If people explicitly understand these issues, then they are much more likely to pull together consistently and in the right direction.

Maximizing revenues: every major business is a significant, long-term investment. Shaping and managing it requires the right strategy and the right structure. Keeping it fresh and vital requires a mix of entrepreneurial and innovative input. All elements, including the tactics employed, must support the organization’s mission, underlying values, and, of course, its growth.

Leveraging the right resources to optimally achieve growth: resources are needed to generate returns. Value creation is central to an organization’s growth and sustainability.

Rousing people: the next building block of corporate success is the ability to set the wheels of a business in motion so that it generates the necessary revenue and value. This happens by actively engaging and rousing people with a top-down approach.

Building Global Relationships and Reputations: this means engaging clients, sharing with them, and showing an interest in them. When you know your clients, and they know you and the good work you and your teams do, the result is a much greater willingness to stay loyal, invest more and improve your business. Our organization relies on people: the people who work here and those who receive our services.

As one of the state-owned companies, ENPPI has a track record of nearly 40 years of excellence in EPC. What do you believe to be the main competences and strengths of the organization?

We are trusted to offer the largest possible range of services by a single contractor, and we are able to manage all aspects of a major project as per our business obligations. Our main asset is people: we keep ourselves matured, as we have the experience; we always conduct our business in accordance with our values of compliance, ethics and customer focus; and we always provide potential access to a wide variety of markets. By significantly contributing to our customers’ benefit and value with our work, it allows us to offer advantages that would be difficult for competitors to imitate.

Moreover, we always maintain our enthusiasm by injecting fresh talent through our learning management system, supplementing experts with fresh graduates and keeping the harmony of our operations as a main objective of all teamwork.

In the past forty years, we have been working with business partners and customers from all over the world, performing work with the most competitive prices, through more than 15 offices and branches all over the globe.

As part of our robust business portfolio, we offer the following services:

– Engineering with fully integrated skilled and experienced engineering teams working in a project-oriented manner to deliver workmanship engineering, from conceptual, FEED, basic, up to detailed engineering and site support services.

– Procurement through a globally well-connected network based on global supplier chains for various types of products, including purchasing, material controlling, expediting, inspection and logistics services.

– Construction management with offerings that value the constructability design aspects and control all project construction activities, including HSE and cost-time elements.

– Electrical and instrumentations installations through our own resources, fully integrated with all design engineering divisions.

– Project and interface management through performing planning, leading, organizing and controlling aspects globally, with a fully integrated experienced project management teams fully committed to customer satisfaction.

Can you highlight some of the flagship projects that showcases the expertise and success that ENPPI can deliver?

We have been working in the business of oil and gas, petrochemicals and process industries since 1978, so we have various role models and flagship projects in those fields, on both local and international basis

In Egypt:

– Assuit refinery project: first oil refinery in the south of Egypt. The refinery manufactures a range of petroleum products including liquefied petroleum gas, kerosene, gas, oil, gasoline and fuel oil. Through an aggressive international tender process, we also won its new project, the Naphtha Complex expansion.

– GASCO C2/C3 maximization complex in Alexandria: we have built and developed most the gas plants located in Egypt. The goal was to maximize the production of C2/C3 from Western Desert Gas field with a total capacity 390 thousand ton/year.

– UGDC plant: it was built it at Port Said to extract natural gas derivatives. It is designed to  process 1100 million cubic feet per day to produce 300 thousand tons of LPG for the local market, 280 thousand tons of propane for export, and million barrel per year of condensates, and to supply the olefin complex in the future with Ethane/Propane mixture by 400 thousand tons per year.

– New Ethylene Cracker Project: Built with Toyo as a JV, this is a 460 KTA Ethylene and 20 KTA Butadiene project at Ameriya in Alexandria, Egypt.

– New Polyethylene Plant 400,000 MT/Y: Built with Toyo as JV, this Polyethylene plant is in Alexandria with a Total capacity of 400 KTA (LLDPE) and (HDPE) through 2 trains of a capacity 200 KTA each.

– GUPCO offshore platforms rehabilitation program: rehabilitation of BP offshore facilities including steel structural platforms, topside facilities and subsea pipelines. The offshore facilities consist of 9 complexes, 69 satellites (with an overall count of 119 platforms and 400 wells) and 1600 km of sub-sea pipelines.

– ANRPC New CCR & Platforming Unit Project: increasing the capacity of the existing refinery by building a new Continuous Catalytic Regeneration (CCR) & Platforming Unit to process 604,000 T/Y of Hydro-treated Heavy Naphtha.

– Zohr onshore development project: producing a 2.7 bcf/d gas production from a single plant located at Port Said through eight integrated production trains.

– West Nile Delta onshore gas development project: ENPPI provided engineering services for this flagship project for BP.

On the International basis:  

SAUDI ARAMCO Yanbu Gas Plant Expansion – KSA: we expanded Yanbu NGL plant capacity from 390 to 585 MBOD. The work scope includes a 195 MBOD de-ethanizer with ancillaries and propane, refrigeration system, feed to the existing de-propanizer and de-butanizer columns, construction of substation with process interface room and expansion of DCS and ESD systems

SAUDI ARAMCO Safaniya plant Water Disposal System Upgrade – KSA: we expanded Safaniya Arabian Heavy Crude and Utilities Plants to maintain the plant’s crude oil demand until 2011. New facilities were installed to overcome the expected increase of Water Content from 17 percent to 35 percent in Safaniya crude oil by 2011, which allows for increasing maximum sustain rates and water wash from 383 to 805 MBOD

– YASREF, Yanbu Export Refinery Project Tank Farm Package – SP1 – KSA: we built a tank farm package that included 33 storage tanks with different diameters (UP to 120mt), sizing up to 1.2 million barrels, nine spheres and four spheroids with a capacity up to 60,000 barrels

– KJO, Al-Khafji Field Development Phase 1 – KSA/Kuwait: we built through a consortium six new platforms with 8500 tons total structure weight. ENPPI’s scope also included the modification of 9 existing platforms, in addition to subsea pipelines with a total length of 110 km sizing 24”, 28”, 36” and 42 “ and laying of 59 km subsea cables.

– KJO, Expansion of Hout Crude Onshore Production FacilityKSA/Kuwait: Expanding the storage capacity at Hout onshore production facility by installation of additional 4 storage tanks (500 to 80,000 m3 capacity floating and fixed roof), in addition to booster pumps, instrumentation, piping, firefighting and a new electrical substation

– Petróleos de Venezuela, S.A. (PDVSA), Extraction and Compression Project – Venezuela: we built a new NGL extraction plant at San Joaquin with a processing capacity of 1000 MMSCFD of natural gas

– Petróleos de Venezuela, S.A. (PDVSA), PAGMI Project Phase I & II Gas conditioning for domestic market – Venezuela: we built a facility for Treating & Conditioning of gas produced from the offshore area in Northeastern Venezuela to be used in the domestic market in the PDVSA Complex, located in Güİria, Estado Sucre

ENPPI has successfully internationalized with operations in a number of countries. How does having Egypt as a home base for operations help ENPPI?

Egypt delivers the biggest skilled workforce base within the MENA region, so ENPPI as an Egypt-based company has been continuously injected by skilled talent, along with the advantage of having one of the most competitive man-hour rates in the world.

Furthermore, the strategic location of Egypt and the advantage of multicultural skills of Egyptian people have given ENPPI a massive n edge in operations in many countries in the Middle East, especially the Gulf.

The good foreign policies of Egypt has always kept Egypt in sound relations all over the world, which eliminated political barriers for ENPPI when it comes to working in international markets like Iraq, Venezuela and Sudan.

What is ENPPI’s strategy for expanding further internationally?

We are planning to diversify both our markets and our products, through an internal business development program called Diversifying Market and Product (DMP) program. This program includes strategic plans, operational plans and tactical plans starting from the top managements to middle and first-line managers in the company.

DMP program for new markets:

Form new partnerships all over the globe with well-selected partners that can offer competitive edge in each region all over the globe

Hire a great team fully immersed in the local environment to deal with overseas business partners and customers.

Install remote offices to build a local presence in places of action in order to ensure client satisfaction and increase our compliance

DMP program for new products:

Nuclear sector: introducing our services for Egypt’s first nuclear power plant, the Dabaa nuclear power plant

Fertilizers sector: participation as a PMT in many local fertilizer plant projects and forming new alliance with technology providers

Urban and infrastructure sector: participation in the development of the New Administrative Capital of Egypt

Residential and housing sector: through the participation in the mature residential market in Egypt, especially the expected New Administrative Capital of Egypt project

As the Ministry of Petroleum and Mineral Resources is implementing an ambitious Modernization Program for the sector with the ultimate aim to develop Egypt as a regional energy hub, how can ENPPI contribute to this national mission?

The major idea of the ambitious Modernization program is to transform our oil and gas from its legacy, service-driven nature into a profitable value-added sector.

As the technical arm of the Ministry of Petroleum and Mineral Resources, we are positively contributing in the program. Firstly, as we are owned by the Egyptian General Petroleum Corporation (EGPC), we strongly participate in maximizing the Egyptian oil and gas sector profits. Company facilities and resources are always put in action to serve the project needs.

By executing projects across the petroleum sector’s value chain, and through working with global clients, ENPPI is continuously paving the road for both knowledge and technology transfer across the sector. In addition, through collaborations with world-class partners, ENPPI is proactively supporting the Ministry in raising the level of local technical standards and practices to be on par with world-class best practices, especially in the areas of safety and engineering. This develops the sector’s capacity and facilitates modernization.

As highlighted earlier, we consider employees as the most valuable asset of the company and holistically for the sector. Our human resources experts/personnel are also proactively contributing to the program with a mission of helping people translate their aspirations into plans and motivating them by including them as part of the modernization plans.

As part of ENPPI’s role in continuous improvement and development as well as raising the capacity of the sector’s human resources, which are all essential constituents for modernization, the ENPPI Academy was established. The services provided by ENPPI Academy ensure the availability of qualified calibers and supports the maintenance of a trained pool of resources well equipped to participate in implementing the modernization project.

 

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