A word from the Managing Director Two years ago (almost to the day), I joined MIS. At the time, the world looked different not just for MIS but for almost all companies and all sectors. By late 2008, MIS was in the throes of significant change par tly as a result of its new status as a publicly listed company (2007) but also as it came to grips with its financial and operational growth. The primary tasks that lay ahead, my immediate priorities, were to manage that change sensibly and to lead the Group strategically to improve its performance for all stakeholders, thereby helping the company deliver stronger returns. The key first steps involved the introduction of a new MIS Management System hinged on the Balanced Scorecard methodology. It also involved restructuring the company to a value stream concept (MIS-speak for ‘business units’). This move gave ownership to each of the value stream heads and allowed us to look at each one with a view to improving top line growth and optimising each value stream’s contribution to the company’s net income. Two years on, I am pleased to see that the ‘change’ tools introduced to manage our growth have been extended to all value streams and primary enablers. Our journey is still in its early stages but we have seen some tangible results. MIS’ half year financials for 2010 point to a marked improvement in gross profit and net income as compared to 2008. We have reduced our debt and that trend is expected to continue, making MIS’ net wor th position a stronger one by the end of this year. But change also involved building on our core value of Innovation and our position as a diversified engineering and contracting group for the energy sector, we launched a new star t-up under the name “MIS Production Services”. This group will focus on the provision of equipment, products and services to surface oil & gas producing companies for both onshore and offshore assets. More details will be offered in our next issue and on the website. Our strategy to leverage our EPC exper tise with the EPI unit launched last year, has borne its first fruit with the recent signing of a FEED contract for a project in Yemen. Unfor tunately, MIS received some sad news this past quar ter. MIS’ founder and ex-director Mr. Adib Nadar, passed away in Beirut on 3rd August following a serious illness. Adib was 80. He will be missed by his peers at MIS. We offer our deepest condolences to his family and friends. As always, I would like to thank all of our clients, par tners, shareholders, board of directors and our dedicated employees, for their suppor t and confidence in this company. Kevin J. Hudson Managing Director
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Investor Relations & Directors’ News New MIS Website is Launched | www.mis.ae The MIS Website was overhauled to allow it to better support the Group’s growth and development. The new MIS website, which was developed by the Marketing Communications team and supported by MIS’ IT team, has been designed for easier navigation, richer content and a new look and feel. Visit at www.mis.ae
Norway calling! | MIS Revitalises its IR Programme MIS Q2 2010 Results Presentation As par t of its strategic effor ts to boost its Investor Relations programme, MIS presented its first half results in an open forum on August 18th to a group of brokers investors, analysts and media in Norway. The initial feedback from the market seems to be positive.
MIS at Pareto 2010 For its fourth year running, MIS presented highlights about the company’s performance at the Pareto 17th Annual Oil & Offshore Conference in Oslo, in September 2010. In line with this, MIS held some one-on-one interviews with some of its key shareholders in Norway. A copy of the presentation is on www.mis.ae.
MIS founder and Ex-director Adib Nadar Passes Away The founder and ex-director of MIS, Mr. Adib Nadar, passed away in Beirut on August 3rd after a period of serious illness. He was 80. Mr. Nadar’s history with MIS dates back to its establishment in 1979 and his role was pivotal in launching the company on its long growth and development path. Mr. Nadar’s diverse experience with support and promotion of oil field construction and drilling operations made him a key figure in several negotiations where MIS secured contracts and business associations in the Middle East. Please see the memorial tribute to Mr. Nadar on page 11.
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EPC & Fabrication RAK Gas Pipeline from RAK Gas Maritime City Plant to Khor Khwair Earlier this year, RAKGAS, a long term MIS client, awarded MIS a contract to build a 16” HHP pipeline with Control station & RTU. The pipeline extends 3.5 km, from the RAKGAS Plant around Maritime City and connecting to the existing EGPC line at Khor Khwair, Ras Al Khaimah. The project covered process design, detailed engineering, procurement and multi-disciplinary construction of the new pipeline with civil, mechanical, electrical, instrumentation and commissioning.
Safe Completion of Riser Frame at Bukha-A As part of MIS’ ongoing engineering services and maintenance contract for RAK Petroleum’s offshore facilities, MIS recently completed the design, fabrication and installation of a riser guard frame at the Bukha field facility. The frame was installed without the use of cranes, being transferred from supply boat using well engineered rigging systems. This project, which was part of the ongoing facility engineering and maintenance works, amply demonstrates MIS’ capability to engineer, build, plan and execute in a safe and efficient manner providing a first class service, irrespective of project value while prioritising employee safety and protecting customer property.
Fabrication of Manifolds for ADCO MIS is currently working on the fabrication of 5 Manifolds for Abu Dhabi Company for Onshore Oil Operations (ADCO), for the segregation of units 6 & 7 and D Flow lines for hook up of temporary testing facilities. The project covers mechanical design, procurement and fabrication of 4, 6 and 8-slot manifolds. Completed manifolds are tested along with accompanying valves from ADCO. Currently, fabrication of piping and structural is in progress and will be delivered as per agreed lots to ADCO’s site, first being in August 2010.
Buoyancy Tank for MNP Jacket, MHN Process Platform and Living Quarters Project Being a continuous service provider to L & T, this supply for vertical buoyancy tanks is a challenging job for MIS due to its tight schedule. The scope includes fabrication, testing and ex-works readiness of a total of 734MT of steel. The delivery date of the first batch of tanks is mid August 2010 and second batch is due mid September 2010. Currently the fabrication for this project is in full force and this jobs timely delivery will contribute to another milestone achievement for MIS during its third quarter 2010.
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New Build & Refurb MENAdrill Hercules 1 & 11 Milestones The New Build Division has achieved several milestones during the past few months in respect to ‘MENAdrill Hercules I’ (Hull 109) and ‘MENAdrill Hercules II’ (Hull 110). ‘MENAdrill Hercules I’ cantilever and drill floor were successfully installed on the hull structure of the rig. This required the involvement and teamwork of various departments working together to make this a successful milestone achievement. The final remaining leg sections are in the process of being installed. “MENAdrill Hercules I’ is nearing the final stages of completion and will be ready for delivery to the First Energy Bank and Hercules Offshore Inc. in the coming months. An important and major milestone was achieved for the ‘MENAdrill Hercules II’ in July by completing the “Float Off ” of the hull. The hull was loaded onto a transport barge and taken to a local drydock for this activity. It has since returned and is alongside in the MIS Sharjah Yard. The leg sections are being installed and preparations are being made for the installation of the cantilever and drill floor in August.
MENAdrill II being loaded on transport barge
MENAdrill I cantilever skidding
Rig Al Bzoom; Progress Continues Al Bzoom is now in its fifth month, with the removals and strip out complete and all major fabrication, modifications and installations going full steam ahead. The main engines and compressors as well as mud pumps are now installed. The project reached a major milestone with the completion of fabrication and installation of three spud cans. This opens up the next major works on sponsons to allow cantilever installation, which is planned to begin in August.
Rig KS Endeavor Changing Shape Post delivery works are nearing completion after KSAM’s request to reduce the draft of the rig. As well as the engineering, fabrication and installation of sponsons weighing 130MT each and the extension of the beam by 14m, the rig has also had living quarters for an additional 20 persons included. Other mechanical works are completed and the rig will be ready for departure and operations in August.
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MIS Rig Metals & Sunbelt API RP 4G Re-certification
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This quarter Rig Metals has successfully carried on the API RP 4G re-certifications for different clients. Such projects prove the capabilities of the company’s quality and engineering depar tments which star ted a continuous improvement plan mid 2009. This is also a direct result of the API 4F cer tification which was renewed in June 2010 and extended the product range to four major components (Mast, Derrick, Crown-block and Substructure).
Ongoing Projects Rig Metals successfully finished its first project for four 40ft container size Frac Tanks on time and budget. The tanks are CSC certified and further build on the CSC / DNV certifications that the company is developing for service and drilling companies. Also, the company has been awarded several mud system packages from its major clients in the 3rd quarter for projects in Oman, Libya and Algeria. Rig Metals is working on adding the full supply and fabrication of a land rig to its existing business activities. This is a natural step for the company’s development and future growth plans. Having built almost every part of an onshore rig so far, it will be beneficial to the company and its clients to gather these experiences and produce a full package.
The development of people is a key part of Rig Metals’ strategic focus. In line with that, Rig Metals organised training session for different levels of staff this past quarter. The training covered: First Aid Training and Rigging and Lifting.
Sunbelt’s Aggressive Sales Drive Sunbelt product sales is one of the company’s core business pillars and the Sunbelt team has revamped its sales and marketing initiatives as it actively drives growth in this area of the business. Sunbelt’s core business strengths are hinged on providing competitive safety solutions and consultancy. This is reflected in the number of contracts with existing and new clients, some of which are: Boots & Coots (Oman) Aspect (Iraq) Petoil (Iraq) Geolab (Abu Dhabi) Britoil (Abu Dhabi) Reliance (Iraq) Niko Resources (Iraq) Sterling (Iraq) NIDC (Iran)
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O&M & EPI O&M Operations O&M Services Division is continuing its operations, successfully providing manpower support services to leading oil and gas companies in the Dubai area under the leadership of Mohammed Kunhi, Vice President. While retaining existing contracts, O&M Services is winning contracts with new clients and plans to expand its operational wings to other key markets such as Abu Dhabi and Iraq. As part of a new initiative, O&M scheduled periodical Safety meetings at our client’s onshore sites. This initiative is in addition to the existing visits performed by the safety personnel.
MIS and ENOC | A Strengthening Relationship MIS received its first contract from ENOC in 1999 and because of the excellent support, MIS has become one of ENOC’s major partners and suppliers of support services. This allowed MIS to incrementally increase the level of manpower support and to cater the O&M services to other areas of ENOC’s operations.
Dubai Petroleum nominated MIS employees Pradeep Kumar and Avinash Borker for the Horizon Zero Hero award for their exemplary contribution towards safety. Gopal ( Maint. Engineer, EPCL), Witold (Maintenance Manager, EPCL), Mohd. Kunhi, Mohammed Ali and Shafiqurahiman (MIS) are seen along with Farid Badri (Deputy GM, EPCL).
EPI Hits the Ground Running Since its launch, Energy Projects International (EPI) has progressed in several fronts towards its 2010 targets. Over the past few months EPI: • • • •
Has significantly progressed with its M&A objectives Has submitted a tender for an EPC project involving an offshore platform and pipelines Is finalising the formalities to reopen an area office in Oman Has secured a FEED contract for a gas plant from Jannah Hunt Oil Company of Yemen
In addition, EPI received a comprehensive research report from the Wharton-AUS MBA (Global Consulting Practicum) students team validating EPI’s Business Plan to expand into the onshore / offshore EPC and EPCM market beyond Northern Emirates, initially focusing on projects not exceeding USD 200M. While lump sum EPC contracts are a challenging segment considering the barriers to entry or reentry into the EPC market, EPI is nonetheless well-poised to go to the market with the right recipe that will differentiate us and give our clients what they want, on time at a competitive price.
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MIS Arabia & MIS Kuwait Yard Expansion MIS Arabia signed an agreement with Jubail Port Authority for leasing a 30,000 m² area, adjacent to the port. This ‘Modular Yard’ is suitable for fabrication of offshore structures, such as boat landing, demolition of decks, MED/MSF for desalination plants and miscellaneous fabrication. In addition, MIS Arabia obtained approval from the Royal Commission to construct a new fabrication facility within Jubail Support Industries and adjacent to the current fabrication facility. The total area for this facility is 20,000 m² and is expected to be commissioned within Q1, 2011. This facility will include several overhead cranes, rolling machine, CNC drilling machines, etc.
Newly Awarded Projects 19 Columns from Technip, Italy / SATORP for Jubail Export Refinery Project 4 Tube Bundles for SAMREF 2 Convection Sections for Fired Heaters for KTI / SASREF
Projects Under Fabrication 2 Fuel Gas Skids for Techni-KTI / Saudi Aramco for Manifa Project 32 Production / Tie-in Spools for Karan Offshore for J Ray McDermott / Saudi 3 Slug Catchers for Karan Inlet Facilities
API-licensed MIS Kuwait Machine Shop MIS Kuwait Machine Shop Division has successfully penetrated the growing market in Iraq for their range of API-licensed machine shop products including double studded adapters, cross overs and spacer spools all of which are used in the oil drilling business with deliveries to Halliburton and Weatherford in Basra, Iraq.
Large Silo for Al Ghanem Industrial Company The MIS Kuwait Fabrication Division has completed the design, fabrication and site erection of a large cement silo for Al Ghanem Industrial Company, Kuwait. The silo is the largest product fabricated by MIS Kuwait with a height of 25 m, diameter of 4.5 m and a weight of 32 tons. The on-time delivery and installation of this product is a significant milestone in the development of MIS Kuwait Operations.
Joint Operations Wafra awards MIS with a certificate for no LTI for two million man hours
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QA/QC & HSE Recertification Audits Bureau Veritas for ISO 9001: 2008 and American Petroleum Institute (API Q1) 2B recertification audits were successfully concluded without any major non conformity.
Six Sigma Green Belt Certification Programme: 2nd Wave Launched The Second Wave of Six Sigma Green Belt Certification Programme was successfully launched with 12 candidates from various departments. It was conducted by MIS’ in-house Master Black Belt, Quality Director, Mr. Abderrahim Benrabah. The candidates, now equipped with the Six Sigma methodology, tools and techniques are currently running Continuous Improvement projects that are linked to value streams and enablers strategies.
Continuous Improvement in Central Operations Team In pursuit of continuous improvement at MIS and to ensure our highest quality changes, Central Operations introduced a fast and reliable method of welding internal and external ring stiffeners by using double head sub arc welding process, therefore reducing the process time and production cost.
Lean: Visual Workplace The 5S program was successfully extended from Pilot areas to the entire yard. Results are phenomenal in terms of productivity, quality and safety. Special thanks to the teams who lead this Initiative, namely: CNC cutting area team, welding school team, electrical & maintenance team, & welding store & painting teams.
OHSAS 18001:2007 Recertification Audit
MIS receives award for its successful blood donation drive
MIS’ HSE department has organised Safety training for field personnel on various subjects such as fire fighting, working at height, confined space awareness, heat stress etc.
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OHSAS 18001: 2007 recer tification audit was carried out successfully by Bureau Veritas. The effective implementation of Occupational Health and Safety Management system throughout the organisation by the commitment from the senior level management and the suppor t from the work force resulted in this achievement.
HR, IT, Community, General News MIS Establishes the Jerry M. Smith Scholarship for Innovation at the American University of Sharjah MIS established “The Jerry M. Smith Pioneer Scholarship Fund for Innovation” at the AUS offering engineering students the opportunity to study at the AUS.
Dr. Nada Mourtada-Sabbah, Vice Chancellor for Development and Alumni Affairs, Kevin J. Hudson, Managing Director, MIS, Dr. Peter Heath, Chancellor, AUS, Jerry M. Smith, Special Advisor to MIS BOD with MIS executives at the signing ceremony
“Engineering is at the heart of MIS’ work and we hope that this scholarship will identify future leaders in this field,” commented Kevin Hudson. “We see this scholarship in Innovation as a continuation of MIS’ commitment to Sharjah and the region.” “We are grateful to MIS for this gift and look forward to continuing our strong relationship,” commented Dr. Peter Heath, Chancellor of AUS.
Developing People & Community Relations MIS recently opened its doors to a number of students from across several universities in the region, providing them with internship opportunities. Our interns are from several institutions such as AUS and Bits-Pilani among others.
IT – Upgrade 100% Complete! The IT infrastructure upgrade project, which was launched in the first quar ter of the year, has now been completed. The programme covered the upgrade of MIS’ existing Systems Infrastructure with the Microsoft systems infrastructure, integrating the latest applications and technologies available in the market. This will enable MIS with enhanced, secure & robust computing systems.
MIS in the News
Ms. Lydwina Chiatoh teaches English to field staff
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In Memoriam - Adib Nadar 1930 - 2010 MIS Founder and Ex-director Adib Nadar Passes Away We asked those who worked closely with Mr. Adib Nadar, namely the founding directors, to say a few words in his memory. “Adib Nadar was no ordinary man. When you needed advice on a difficult issue, help on solving a difficult problem, introduction to a person of influence or simply someone to talk to, you went to Adib Nadar. He will never be forgotten by all who were fortunate enough to know him. He was my dearest friend.” Charles L. Davis “Adib was a friend, colleague and confidant of mine for 38 years. He will surely be missed by me and thousands more in the Middle East. Adib’s advice and assistance was impossible to value in my working career in the Middle East. He was an accomplished executive manager with Albert Abela, a valued adviser of McDermott in their early days and principal founder, Board member and adviser of MIS. Through Adib’s many accomplishments there was one characteristic that I and most of his colleagues valued more than any other. Adib was the world’s best and most persuasive communicator that I have ever known. He commanded respect and attention from anyone he was talking to from a Shaikh to a tea boy. He treated every person he came into contact with, with respect and attention and with his communications ability he could sell or persuade people anything.
Adib Nadar at sea, his favourite past-time
I could go on for many pages relating my experiences with Adib. I miss you Adib and I’m sure you are in a better place and I know it will be better still with you there.” Jerry M. Smith “I know Adib as a tough competitor but always a fair one. I know Adib as an associate always creative, progressive and advanced. I know Adibb as a friend, always sincere and generous to all. Everybody should thank Adib that MIS exists today. Words cannot describe the man that Adib was. God bless his soul. We will miss him and always remember him, My most sincere condolences to his warm family and friends.” Abdel Salam El Zeidy
Mr. Davis with his good friend and colleague Mr. Nadar on a recent trip to Beirut in 2009
“I , being one of the founder employees of MIS, had opportunities to closely interact with Mr. Adib Nadar, a great entrepreneur, humanitarian and visionary. In the earlier days of MIS, I used to visit him at his Abela’s office for discussions and to seek his support/advice in regard to business administrative affairs of MIS. His suggestions and comments were a very useful tool to me in managing MIS affairs in almost all areas. Being the founder of new MIS, Adib had a great role in bringing MIS to this level of growth along with the other founder directors; Mr. Chuck Davis, Mr. Smith and Mr. Zeidy. My hearty condolences to his bereaved family members and may GOD rest his soul in eternal peace.” Mohammed Kunhi
Adib Nadar with his grandchildren
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