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Dubai-headquartered marine and offshore services pioneer Drydocks World have been operating at total capacity since the start of 2023, thanks to a steady flow of orders.
"Overall, the performance for the first quarter of 2023 has been above par, with 97 completed Ship and Rig repair projects, and we expect this level of performance and execution to continue for the rest of the year…" its CEO, Captain Rado Antolovic told Zawya Projects in an interview.
Drydocks World was established in 1983 through a special decree (Decree No. 3) issued by the late Ruler of Dubai, Sheikh Rashid bin Saeed Al Maktoum.
Over 40 years, the company has completed 20,000 projects, including ship repair, maintenance, upgrades, and offshore and onshore services. A key milestone was its integration into the DP World group in 2018.
"Being based in Dubai and being part of the DP World portfolio of companies provides us with a significant advantage that differentiates us from competitors," Antolovic said while underlining Dubai's location and its economic, political, and social stability, which allows the company to work on lengthy projects without any disruptions.
He confirmed that the company's South Yard development will be completed this year.
"Our new 70,000-square metre 'South Yard' facility is being developed to increase our fabrication capacity incorporating new technologies that will benefit oil, gas and renewable energy clients," he said.
Antolovic, who holds a PhD in Transport and Economics from Macquarie University, said the company is currently working on several projects simultaneously, ranging from the conversion of an Aframax tanker into an FSO to the installation of new BWTS to the refurbishment of drilling ships and FPSOs.
"Drydocks World completes over 300 projects a year, with a record of handling 42 refurbishment projects simultaneously," he said.
Excerpts from the interview
How has Drydocks World adapted its strategies and operations to meet customer demands in the engineering, procurement, and contracting services (EPC) area, alongside its existing ship repair, maintenance, and offshore services? Could you share with us your order pipeline?
With new equipment, our digital transformation, and the establishment of our EPC division, we are catering to a much more dynamic market. The maritime industry has a tremendous amount of backlog in refurbishment and maintenance. Much of this concerns the new build market associated with China, and there is plenty of demand for upgrading existing fleets to extend their lifespan.
Drydocks World has been operating at full capacity since the start of 2023, thanks to a steady flow of orders and consistent bookings. So far, we have received more than 60 confirmed repair orders in the first quarter of 2023, sold out yard occupancy until the end of August 2023, and received more inquiries stretching out later into the year.
Thanks to the high demand for jack-ups in the UAE region, we are currently dealing with 13 jack-ups in the yard, and we expect a minimum of 10 to 12 more rig projects by the end of the year.
Separately, we are also going through a busy period with large conversion and new-build projects, which includes the completion of a large FPSO [Floating production storage and offloading] upgrade/conversion project in the upcoming months.
Overall, the performance for the first quarter has been above par, with 97 completed Ship and Rig repair projects. We expect this level of performance and execution to continue for the rest of the year thanks to an observable increased demand in the market for oil and gas projects, which we expect to inevitably lead to additional conversion and new build projects in the second and third quarters of this year.
There is also a healthy pipeline of work on the EPC front. We recently signed strategic understandings with key industry players to jointly undertake regional and global EPC projects, utilising our engineering capabilities, intelligent solutions and technologies for refurbishments and green solution conversions for BWTS [Ballast Water Treatment System], EGCS [Exhaust Gas Cleaning Systems] and FSRU [Floating Storage and Regasification Unit] retrofit.
Could you provide more details about the new South Yard development at Drydocks World and how it enhances the company's capabilities?
Yes, the South Yard development is due to be completed this year. Our new 70,000 square metre 'South Yard' facility is being developed to increase our fabrication capacity incorporating new technologies that will benefit oil, gas and renewable energy clients.
The 'South Yard' will be a world-class facility featuring cutting-edge equipment, a much leaner execution process and a completely new load-out facility for heavy structures. It will have the latest automation and robotic process lines with provisions for specialised coating areas to ensure more efficient, faster, and cleaner turnaround for these projects.
The workload ahead of us also has driven investments into other areas like adding onshore cranes on all the berth and fabrication spaces, additional berthing facility for the rigs, an extension of the pipe department to increase exotic pipe fabrication capacity, and robotic blasting painting.
What technologies and capabilities are Drydocks World investing in to maintain its competitive advantage?
Our comprehensive service offering matrix, strategic location in the UAE, and unwavering commitment to excellence set us apart. Being based in Dubai and part of the DP World portfolio of companies gives us a significant advantage. The UAE's strategic location connects us seamlessly with the rest of the world through crucial trade routes. Moreover, Dubai's economic, political, and social stability allows us to work on lengthy projects without disruptions.
Our yard is currently spread over 200 hectares with over 3,700 metres of berth space, four dry docks, one wet and dry basin for docking small vessels and a floating dock. Our largest dock can handle the world's largest ship. Drydocks World completes over 300 projects annually, with a record of handling 42 refurbishment projects simultaneously.
We are continuously investing in evolving our business. We recently concluded an important agreement with Cimolai Technology to supply four new Level Luffing Jib Cranes of 50-tonnes capacity each and an outreach of more than 100 metres. We also acquired a new tugboat named JUMEIRA 10. It features the DAMEN ASD 2312 Twin Fin design and a powerful 1800RPM engine, offering up to 65 tonnes of bollard pull. This tugboat is perfect for operating in congested spaces at Drydocks World and can handle larger ships in tight areas with two independent towing winch drums.
Are there any specific successes from last year that you would like to highlight? What are the new projects that you are working on?
Key projects undertaken and completed in 2022 are the Hollandse Kust Zuid (HKZ) Beta Platform and Admarine 657. The 1,500-megawatts (MW) Hollandse Kust Zuid renewable energy wind farm zone comprises four 350 MW offshore wind farms, which will be connected to two 700 MW offshore substations: HKZ Alpha and HKZ Beta platforms. Drydocks World was scoped for the Beta Platform to complete production, engineering, procurement, fabrication, pre-commissioning and commissioning, and the load out of the Beta topside and HVAC system. This was a part of the first offshore high-voltage substation projects awarded to Drydocks World and constructed in the Middle East.
For Admarine 657, we were scoped to complete major upgrade and modification work carried out for shallow water drilling. Some of the work included fabrication and installation of new sponsons, a new jacking system (including six new gearboxes), structural reinforcement, new walkways, platforms, hull and piping renewals, relocation of cranes along with outfitting, relocation of rescue boat platforms and davits, relocation of helideck, flare booms, mooring and towing arrangement, overhauling of all drilling equipment, and more. Approximately 2,000 tonnes of new steelwork, 3km of pipelines, and 6km of power and control cables were installed over 175 days, which took 700,000 LTI free manhours.
In 2023, we recently bid farewell to the FPSO Firenze, which set sail from our yard in April and is set to operate in the Baleine Field, off the Ivory Coast. This major renovation project was a massive undertaking completed by the Drydocks team within 15 months and had crossed six million LTI free manhours by April 2023.
We are currently working on a number of projects simultaneously, including the conversion of the Aframax tanker into an FSO [Floating Storage and Offloading] unit [for Perenco Brazil]; the removal, rudder renewal and refit, and work on CPP propellers and tail shafts of one of the largest semi-submersible heavy lift ships owned by a major customer based in Europe with dual propulsion; the engineering, fabrication, installation and commissioning of a new fire-fighting system on the Seamec Paladin; installation of a new BWTS on the McDermott DB 50 and overhaul of its 4,000 tonnes crane block; and the complete refurbishment of the Admarine 688, for which we're scoped to overhaul its drilling equipment and reactivate its rig after being stacked for five years.
We have a range of ongoing projects, including the FPSO Atlanta Redeployment, which will see us undertake a conversion, refurbishment and life extension for the FPSO, which will be deployed offshore at Atlanta Field in the Santos Basin, Brazil. We also have the PetrojarlKnarr FPSO Redeployment for modification, upgrade, repair, and life extension works for the Rosebank oil field in the United Kingdom Continental Shelf, an FPSO Module for a unit deployed in the Mediterranean basin, which is a final construction and the fabrication of a calm buoy for the Supsa Oil Terminal in Baku.
How is Drydocks World positioning itself to capitalise on upcoming opportunities?
In 2021, we launched a comprehensive digital transformation project, which utilised the powerful capabilities of the IFS Cloud to meet the expanding requirements of enterprise resource planning and asset management. Through this project, we have significantly improved our critical business systems, laying the foundation for Drydocks World's transition into a digital shipyard. This transition has brought about streamlined processes, seamless integration between systems, and the utilisation of real-time data for informed decision-making across our entire organisation.
Furthermore, we have embraced cutting-edge technologies such as RFID devices and emerging technologies like augmented reality and robotics, seamlessly integrating them into the comprehensive solutions provided by IFS.
How has Drydocks World addressed sustainability concerns and implemented environmentally friendly practices?
Whether through automation, digital transformation or just more innovative usage of equipment and resources, we are finding operational efficiencies that make us sustainable in our business. Our wastewater treatment facility has been meticulously engineered to process all industrial waste, employing an in-house filtration system integrated into every graving dock trench. This state-of-the-art system facilitates the recycling of water and oil to help preserve our precious marine environments.
Our 'Zero Harm' HSE initiative advocates zero health, safety and environmental harm to preserve our workforce and the environment.
(Reporting by Anoop Menon; Editing by SA Kader)
(anoop.menon@lseg.com)
