Company snapshot: AlMansoori Specialized Engineering

Date established 1977

Main business areas Oil & gas field services; oilfield equipment manufacturing

Main business region Middle East and North Africa

Chief executive officer Nabil Alalawi

AlMansoori Specialized Engineering structure

Abu Dhabi-based AlMansoori Specialized Engineering was set up in 1977 to provide field services for the oil and gas industry. The company is a private entity, with ownership shared equally between Nabil Alalawi, Abdullah Nasser Hawaileel al-Mansouri and Hilal Mubarak al-Mansouri.

AlMansoori initially focused on winning field service contracts in Abu Dhabi, but has since expanded to become a major regional player, with a presence in more than 19 countries.

AlMansoori Ownership 
(percentage)
Nabil Alalawi   33.33
Abdullah Nasser Hawaileel al-Mansoori 33.33
Hilal Mubarak al-Mansoori   33.33
Source: AlMansoori

In 2008, the firm was reorganised into two business units, AlMansoori Petroleum Services (AMPS) and AlMansoori Petroleum Industries (AMPI). AMPS is responsible for providing oil field services, while AMPI is the manufacturing and fabrication division. The oil field services operation accounts for 90 per cent of sales.

AlMansoori has about 2,000 employees and its chief executive officer is Nabil Alalawi.

AlMansoori Specialized Engineering operations

AMPS offers a wide range of oil and gas field services from directional drilling, safety services, logging and perforation, and production testing to inspection and workover services and manpower supply. It has support centres in each country where it is active to provide services to customers from close range.

AlMansoori revenue growth
(percentage)
2010 40
2011* 70
*=Forecasts by AlMansoori
Source: AlMansoori

The manufacturing and fabrication division, produces drilling chemicals, production chemicals, oil and gas drill pipes, oil field equipment and process equipment. AMPI operates five manufacturing plants in Abu Dhabi’s Mussafah industrial district. About 80 per cent of its output is used by AMPS, with the remainder sold externally.

AlMansoori has built up its business through forming joint ventures with international firms. In total, it has seven joint ventures with foreign companies, both on the servicing and the manufacturing front.

Although stakes vary, AlMansoori is the majority shareholder in all its joint ventures. AMPI has also entered into licensing agreements with companies outside the region to manufacture their products. Joint venture partners include US-headquartered National Oilwell Varco and Nalco Energy Services, and Hilong Group of Companies of China.

AlMansoori lost time incidents
(Per million man hours)
2000 4
2001 0.25
2002 2
2003 3
2004 0.4
2005 1.3
2006 0
2007 0
2008 0.63
2009 0.24
Source: AlMansoori

Although the company has won some business in Asia in recent years, AlMansoori’s geographic focus is on the Middle East and North Africa region. Its core markets are the UAE, Saudi Arabia and Iraq, where AlMansoori has provided oil field services for the past six years.

Unlike service contracts in the North American oil and gas industry, the majority of AlMansoori’s contracts with its clients are long term, averaging about three years. Its client list includes Abu Dhabi Company for Onshore Oil Operations, Abu Dhabi Marine Operating Company, ConocoPhillips and ExxonMobil, both of the US, Statoil Norway and France’s Total.

The company has a policy of hiring locally and has managed this with varying degrees of success. While in Oman, about 70 per cent of the workforce is made up of locals, and the Egypt operation consists almost entirely of Egyptians, in Saudi Arabia only about 35-40 per cent of the workforce is local. To ensure high levels of safety, AlMansoori tries to minimise staff turnover, with a manager expected not to lose more than 5 per cent of his team in a year.

AlMansoori Specialized Engineering ambitions

Although AlMansoori has made a couple of acquisitions recently to gain access to specific technologies and licences, the management’s strategy is to grow organically so as to preserve the company culture. It prefers joint ventures to acquisitions. AlMansoori signed its most recent joint venture agreement in 2010 with US-based Key Energy, a drilling work company. Its most recent acquisitions were made in 2007 when it bought UK-based Target Energy, which enabled AlMansoori to offer directional drilling services, and a Thailand-based logging and perforation company, which helped it overcome difficulties in obtaining an explosives licence for the GCC.

AlMansoori says its revenues grew by 40 per cent in 2010 and this year it is expecting an increase of 70 per cent. Predictions for the next five years are for 30-50 per cent growth. To deal with the additional workload, the company is planning to add about 500 people to its headcount in 2011, an increase of 25 per cent. Its geographic focus will continue to be on the UAE, Saudi Arabia and Iraq.