PTSC M&C – The Leading EPCIC Contractor in Offshore Engineering

8:53:22 AM | 7/25/2022

Throughout over 20 years of development (2001 - 2022), PTSC Mechanical & Construction Co., Ltd (PTSC M&C) has successfully delivered dozens of large-scale intensive projects for both local and international oil & gas markets. It has gained high appreciation from clients and for the fulfillment of strict requirements of HSE and Quality Management System, Schedule and Productivity of projects. Achievements endeavored over the last two decades have affirmed the leading position of PTSC M&C in Offshore Engineering, while contributing to the key role of Petrovietnam Group and PTSC Corporation in national economic growth. “We have a short interview with Mr. Dong Xuan Thang, Director of PTSC M&C, on this success. Cong Luan reports.

From a small entity to the leading EPCIC Contractor in Offshore Engineering, from only participating in parts of fabrication projects to successfully acting as an EPC/EPCIC contractor for large range oil and gas projects worth hundreds of million US dollars each, PTSC M&C has shown remarkable growth in more than two decades of operation. Could you please tell us more about this path?

The predecessor of PTSC M&C is a bonded warehouse under PetroVietnam Technical Services Company (PTSC). After some small projects in 1999, the bonded warehouse had transformed into Mechanical and Construction Enterprise on 15th May 2001 with only 22 employees and a 6.3ha yard at PTSC Downstream Port. From the beginnings, with limited resources, the Enterprise had undertaken only small domestic projects worth a few million dollars each.

Completing installation of the Sao Vang central processing platform (Sao Vang CPP) at Sao Vang and Dai Nguyet Project of Idemitsu Oil & Gas Co., Ltd

In 2007, with the transition from an Enterprise to a Company Limited, PTSC Mechanical & Construction Co., Ltd had successfully performed many construction and installation projects for the domestic oil and gas market, lifting revenue past US$100 million for the first time. At the same time, PTSC M&C was entrusted by Cuu Long JOC to execute the Su Tu Den North East Project as an EPCIC contractor for the first time also. Following this success, PTSC M&C continued to win the bid for the Chim Sao Development Project by Premier Oil Vietnam Offshore under international bid method.

Also at this time, PTSC M&C had determined to strengthen its engineering competence as the key input for all steps of service provision. On that basis, the company's leadership strongly invested in developing in-house Detailed Engineering Design capabilities and fabrication facilities as well. Access to foreign markets had been fostered, potential opportunities had been carefully evaluated, reasonable strategies had been determined, which helped the Company to win the bid in many projects in the international markets.

By 2010, after nearly 10 years of operation, PTSC M&C basically completed the system; enhanced its project management capacity and possessed abundant, diversified and modern construction resources. Its construction productivity, safety, efficiency and quality factors in projects were highly appreciated by investors. In 2012, the company successfully acted as an EPCIC contractor for the Bien Dong 1 Project, including a central processing rig with a total weight of nearly 40,000 tons. This was the largest offshore oil and gas project in Vietnam at that time, and also a major turning point in the development of the oil and gas sector in Vietnam and PTSC M&C particularly.

After 2013, PTSC M&C marked success in its international market expansion strategy. Its market coverage and brand presence gradually appeared in more markets and was recognized by many new partners. Almost every year, the company won at least one international project. Its average revenue reached US$200 million a year at this time and it was named Top 500 largest enterprises in Vietnam for many consecutive years.

Business management of PTSC M&C’s Board of Directors

In the past five years, PTSC M&C has continued to carry out many large-scale and high-value oil and gas projects, domestically and internationally, including Sao Vang - Dai Nguyet project for Idemitsu Kosan Co., Ltd. and Gallaf Batch 1, Gallaf Batch 3 for North Oil Company (Qatar). Notably, winning the EPCI bid for projects in Qatar is an impressive achievement of PTSC M&C in global market expansion and development strategies, especially when the world oil and gas industry experienced a double crisis of the COVID-19 pandemic and the serious drop in oil prices. PTSC M&C has been confident in competing with famous contractors in the region to win bids in the Middle East where technical requirements are strict and competitiveness is very high. This progress reaffirms the position of PTSC in general and PTSC M&C in particular in the international oil and gas mechanical engineering market. PTSC M&C has successfully built the most prestigious and quality contractor brand in Vietnam and continues to write Vietnam's name on the world map of oil and gas industry services.

During two years of the COVID-19 pandemic, what strategies and solutions did PTSC M&C adopt to maintain stable production and business amid its negative impacts?

As a provider of oil and gas construction services, PTSC M&C possesses the largest workforce in PTSC Corporation as well as in Ba Ria - Vung Tau province. In addition, in dealing with project-based jobs, strict requirements for contract responsibility, progress, quality, and safety are always our top priorities.

Transporting, installing, and testing the three rigs for Gallaf Batch 1 Project of North Oil Company (NOC)

In 2020 - 2021, complicated developments and knock-on effects of the COVID-19 pandemic were very sensitive to PTSC M&C’s business environment. During this time, we carried out four projects simultaneously for both domestic and foreign customers, including three in foreign markets. People at PTSC M&C's construction site sometimes reached more than 4,000, including investors, partners, customers, suppliers, subcontractors and its employees. Therefore, PTSC M&C urgently applied radical solutions to keep on production and business activities to ensure project requirements and follow pandemic prevention programs of Ba Ria - Vung Tau province and directions from Vietnam National Oil and Gas Group (PVN) and PTSC Corporation. During the fourth COVID-19 pandemic outbreak (July 2021), the company had to arrange safety zones on construction sites for nearly 1,000 employees to ensure the construction progress of its undertaken projects. The company arranged accommodation, logistics, food and laundry for employees in its safety zones.

With a reasonable strategy and firm action from the leadership, PTSC M&C effectively implemented measures to prevent and control the pandemic and successfully executed projects as scheduled, safely and efficiently, despite numerous difficulties (disruptions of global supply chains, lower productivity due to limited working hours and increased cost for physical distancing; increased project construction costs; interrupted project plans due to COVID-19 pandemic impacts).

Notably in 2021 - the year that marked its 20th anniversary, PTSC M&C continuously achieved impressive results in key service areas from target markets. For example, with its traditional wellhead rig service, PTSC M&C was trusted by North Oil Company to win an EPCIC package for Gallaf Batch 3 Project in Qatar. The company also won a rig stand installing subcontract from Daewoo Shipbuilding & Marine Engineering (South Korea), a component in the EPCIC6 package, and a centrally technological rig stand in Shwe Project in Myanmar for the general contractor, Hyundai Heavy Industries of South Korea.

In addition, PTSC M&C marked an important milestone in renewable energy services by entering into a priority agreement with its partner Semco Marine to build two offshore substations under Hai Long 2 and Hai Long 3 wind power projects in Taiwan. The success of Hai Long Wind Power Project is attributed to the right breakthrough approach to services and an important premise for PTSC M&C to further expand its capacity, resources, and experience in joining the service supply chain to take a shortcut to the energy transition megatrend in Vietnam as well as in the world.

In the long-term development strategy, the common goal of PTSC M&C is to affirm and enhance its No. 1 position in providing EPC/EPCI contractor services for offshore mechanical engineering projects in the domestic market, in the region and in the world. What are key projects the company will develop to accomplish this goal?

In the long-term development strategy, PTSC M&C will continue to focus on services of central technology rigs, wellhead rigs, residential rigs and all types of oil and gas production platforms, which are the strengths of the company. PTSC M&C will continue to closely pursue offshore projects in the country, maintain its leadership in EPCI services for oil and gas projects; boost market development, approach customers and partners to seek opportunities and projects in foreign markets, and focus on markets where it will have the chance to participate directly in EPCI contracts.

At the same time, we will also strengthen and perfect our EPCI general contract capabilities to enhance our active approach and competitiveness and bring optimal solutions in terms of cost and schedule to customers. We will continue to step up service restructuring, and increase the scope of onshore supply and wind power services by researching, planning and investing in infrastructure for gas electricity, renewable energy and technology modules to adapt to ongoing energy transition trends.

To accomplish the above objectives, the company will apply many consistent internal solutions as well as increase connectivity with external customers and partners. Above all, the active support from agencies, especially Ba Ria - Vung Tau province, will also play a very important role in helping PTSC M&C reach its goals soon.

Thank you very much!

Besides sustainable business development, PTSC M&C always focuses on taking care of the material and spiritual life of employees and creating regular jobs and stable incomes for them. At the same time, the company also takes the lead in meaningful volunteering and social welfare activities, which are the unique cultural beauty not only of PTSC M&C but also of PTSC and PVN in general.

With its positive contributions to the development of oil and gas technical services in particular and the country's socio-economic development in general, PTSC M&C was honored to receive many awards and noble titles from the Party, the State, Government and Vietnam National Oil and Gas Group (PVN), including the First, Second and Third Class-Labor Orders. The company was also proud to receive the "Best EPC Oil and Gas Contractors in Asia" title awarded by World Finance Magazine (UK)