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Interview

with Hemant Sharma, Country Manager, ABB Indonesia

11.01.2008 / Energyboardroom

ABB is a leading global company that provides power and automation solutions to a wide array of industries. How important is Oil & Gas in your overall portfolio of activities worldwide and in Indonesia?

Oil & Gas is an important part of the portfolio for ABB. We have around 4,500 dedicated Oil & Gas engineers, 50 centers around the world and thousands of successfully completed projects in this sector over the past several decades. ABB is market leader in Oil & Gas Automation systems with a leading global market share in our domain of operations.

ABB has reinforced its focus on the Oil & Gas business and we continue to execute key projects in the industry. We work on both upstream and downstream sectors serving areas like refining, chemicals, petrochemicals etc. with complete electrics, automation solutions instrumentation etc. Terminal Automation is another focus area.

What is ABB’s track record in the Oil & Gas related industries? Main milestones and achievements in providing power electrification and automation solutions?

ABB is one of the biggest global players for electrification, automation and telecommunication solutions. Our unique capability is in combining these three core competences in order to become a Main Electrical and Instrument Vendor (MEIV), delivering integrated solutions and reducing the interface risk and cost for our customers.

Within the South Asia region which Indonesia is a part of, ABB has recently won O&G projects in Pakistan, Vietnam, Malaysia and India. As an example, we are executing a project in Malaysia as the Main Electrical and Instrumentation partner (MEIV) for two oil platforms currently being built for a middle east based Oil Company. Last year ABB also recently won a project for a Korean energy company where we supplied control / electrical building together with the automation system and electrification. This is a unique solution that ABB Indonesia can provide. We have a good number of installed bases in Indonesia for automation and electrification in both offshore and onshore facilities with major oil companies, both local and foreign.

What are some of your most recent projects in the Power and Oil & Gas sectors, and how do they illustrate ABB’s ability to help companies improve their performance while lowering environmental impact?

ABB just won a $ 400 M to supply power equipment to the world’s largest Wind Farm project from German utility EON. This system is expected to contribute to a reduction of CO2 emission by 1.5 million tons per year. ABB just also won order worth $440 million from the State Grid Corporation of China and other partners to provide new ultrahigh voltage technology for the world’s longest power transmission link. Increasing the voltage level of electrical transmission creates considerable advantages for environment including lower electricity losses and the use of less land compared to traditional overhead lines. UHVDC is particularly suitable for fast countries like China where the centers that need power are often located far from power sources.

In the O&G sector, we recently supplied a low electrical losses sub sea cable (XLPE) to StatoilHydro in Norway to bring power from mainland to their offshore platforms. When fully operational, this will curtail 230,000 tons of CO2 emission per year. ABB also designed and construct a new oil processing plant in an onshore oil field in Italy. In this project, ABB will provide engineering, design, commissioning, construction and startup services. In addition, ABB will provide automation system including a system 800xA distributed control package, emergency shutdown and fire and gas systems for the whole project as well as the electrical system for a new power station.

What is ABB’s strategy to capitalize on the many O&G opportunities in Indonesia that will arise as a result of the new push for boosting exploration, production, gas infrastructure, and the expansion of Indonesia’s refining facilities?

ABB is following up the big project opportunities starting from the early stage so we can introduce customers to the latest technology which can benefit them. Our key aim is to maximize the value we deliver to make them more competitive.

ABB also offers many solutions for offshore applications, LNG, pipeline, tank terminals, etc. One very important factor for O&G customers is risk management, an area where ABB can help mitigate their risk by offering our capacity to execute large multi-scope projects with our professional project management, global presence and with strict compliance to international industry standards. In this way, we ensure timely high quality deliveries throughout all project phases, from concept to operation with a firm focus on Health, Safety, Security and Environment.

ABB will utilize its global experience and local presence to help develop Indonesian projects and make our customers more competitive in an increasingly global world.

What kind of expertise can ABB provide to companies engaged in offshore and deepwater exploration, which many see as the future of O&G in Indonesia?

ABB offers a full range of solutions for this demanding segment, from operational centers and control rooms to field installations. Specifically, we can provide Asset and Information Management Systems, Simulator Systems, Control Systems, Emergency Shutdown Systems, Remote Terminal Units, instrumentation and Fieldbus solutions, analytical instruments, drives and motors, telecommunication solutions and power technologies.

What gives ABB a competitive edge in Indonesia over other similar automation companies?

ABB’s capability to deliver full automation, telecom and electrification as an integrated solution is a competitive edge over other similar automation companies. It offers advantage in terms of single point of contact (i.e project manager), consistent engineering, installation, commissioning, documentation and start-up approach. Moreover, our wide portfolio, single window approach and ‘bundling’ capability are a big advantage to our customers.

What characterizes ABB’s after sales service, in terms of assisting clients with maintenance activities for optimum performance of your solutions?

ABB considers after sales / maintenance as a very important aspect of our business. In Indonesia, ABB provides on-demand service, maintenance contract options, and performance-based services. We understand our customers’ demands to have a high availability of the equipment. We also have on-demand training for our customers. Moreover, ABB pays very high attention to development of its own personnel’s skills and competences. Furthermore, ABB offers customers audit and benchmarking services in order to help them attain the highest standards in processes.

In Indonesia, as in the rest of the world, there is a renewed interest in the development of alternative energy sources. What is ABB’s expertise in this domain and where do you see the most potential in the Indonesian market?

ABB is very strong in providing solutions to alternative energy projects. Wind power is a prime example where ABB has a wide range of offering. In Indonesia, for example, most of the geothermal projects are using ABB products. In reality, regardless of the energy source in question they will all require automation and electrification systems and ABB is ready to respond to those needs.

To what extent are mounting concerns over the environment, especially with regards to global warming, shaping ABB’s approach to the power and automation businesses?

ABB sees this issue not as a challenge, but as an imperative for society and also as a business opportunity. Energy efficiency and environmental compliance of our own products are two such areas of focus. We also have several products that promote energy efficiency such as drives, energy efficient motors, control systems, static VAR compensation etc.. Solutions such as HVDC Light also contribute significantly to reduce the CO2 emissions.

How would you describe ABB’s reputation in Indonesia’s O&G community?

ABB by its name is already well known in Indonesia. Within the country’s O&G community in particular, we are recognized among the leading players in this business. Our technical competence, domain knowledge and product portfolio is a great advantage.

What is your ambition for ABB 5 years down the road, in terms of growth and positioning in Indonesia and specifically in O&G?

ABB is currently growing steadily in Indonesia. We are well positioned in this market and we aspire to multiply our volumes manifold over the next few years. ABB will grow together with the O&G industry, which is one of our focus sectors and also support the development of power and other industry sectors in Indonesia. Given the economic promise in this country we will remain a leading player and are committed to supporting infrastructure and industrial development with our leading edge technologies.

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