AlMansoori Specialized Engineering: MEED Assessment

14 February 2011

The geographic focus of AlMansoori means it will be well placed to capitalise on this investment

AlMansoori was able to ride out the global economic crisis with minimal turmoil due to the long-term nature of its contracts. Furthermore, although some oil companies delayed launching new projects, others sought to accelerate schemes in order to capitalise on falling contracting costs, which meant demand for oil field services has remained strong.

With oil prices headed toward $100 a barrel again, the outlook for the oil field services sector is positive; the exploration of new and technically challenging fields is once again economically viable.

The geographic focus of AlMansoori means it will be well placed to capitalise on this investment. In particular, the national oil companies in the UAE and Saudi Arabia have ambitious plans for raising production.

Iraq – where AlMansoori is well established – is prioritising investment in hydrocarbons with 15 per cent of the national budget, about $27.9bn, allocated to the sector in 2010-14. The company would do well to look at other promising markets in the region, such as Iran and Sudan. This would mean taking on more risk, but would make it better placed to compete with the major US oil field services firms.

In addition to a positive trading environment, AlMansoori benefits from stable leadership and the absence of shareholder pressure, which means its long-term targets for revenue growth should be attainable.

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