Speedy wins $50m Abu Dhabi contract
By Murray Pollok18 July 2012
UK rental company Speedy has won a five year rental contract valued at US$50 million for a major oilfield project in Abu Dhabi.
Speedy will provide logistics, rental equipment and asset management services to ESNAAD, a division of Abu Dhabi National Oil Company (ADNOC). ESNAAD is working with Zakum Development Company (ZADCO) on its UZ 750 Project at the Upper Zakum field, the fourth largest oilfield in the world.
It is the second major rental contract that Speedy has won in the Middle East since it moved into the region in late 2009 through its agreement with Al Futtaim Carillion (AFC). Under that contract Speedy has been working on projects in the UAE and Egypt.
The ESNAAD contract, which is for an initial period of five years with a two year extension option, will support drilling and processing activities on four artificial islands being constructed by ZADCO.
Speedy's chief executive, Steve Corcoran, said the company was delighted to be involved in a "flagship" oil and gas project in the region; "As a group, we have significant experience over the years of using our technical expertise in major oil and gas infrastructure projects and this, combined with our ability to provide complementary asset management services on a wider basis, has been an important factor in our International Asset Services business securing this major contract."
Meanwhile, in a management update published to coincide with the company's annual general meeting, Speedy chairman Ishbel Macpherson said the new financial year (starting in April) had been "satisfactory", with first quarter revenues up 5.6% despite the period being affected by Easter break, May bank holidays and the Queen's Jubilee holiday.
Mrs Macpherson said the international division had seen an encouraging start to the year with revenues for the first quarter up 61%, "driven predominantly by continued growth in oil and gas projects across the Middle East region and in Abu Dhabi in particular." She said the ESNAAD contract was a key development.
Speedy said its capital investment this year was being focused in areas where there was greatest demand. For example, it has strengthened its fleet in power generation, compressors and low level access.