NPCC Announces Diversification Plans

Shift to Petrochemicals and Renewables

Oilfield developer National Petroleum Construction Co. plans to diversify into the downstream and renewable in response to changing industry demand.

The engineering, procurement and construction specialist expects to move investment from its current focus on upstream offshore oil and gas projects to new areas which are seen as more profitable.

“We cannot focus on the model that we are used to, because the industry is changing, and we have to adapt… We are embarking on a journey that will involve many challenges, but it will enable the company to grow to reach different heights, to enter new markets, and to develop new sectors,” said Ahmed Al Dhaheri, CEO of NPCC.

Onshore Segment to Grow

The company recently took a minority stake in a French renewables company, and is identifying potential acquisition targets from the engineering sector. Al Dhaheri expects onshore projects to rise from 10 percent of the group’s projects to about 20 percent.

“When I look at the future of the company, we are planning to develop many sectors, many areas. We want to expand in downstream and to have a bigger share in executing onshore projects, and we are looking at renewable energy, especially offshore wind farms,” Al Dhaheri explained.

Offshore Wind

Given the company’s existing experience in oil and gas EPC work, a shift to offshore wind is understandable with Al Dhaheri pledging to boost involvement in the renewable sector. NPCC will develop a dedicated team focused solely on renewables, with its own targets different from the rest of the company
“It requires a completely new mindset. Working out of our comfort zone is not going to be an easy journey, but with the resources we have, I believe that we can really penetrate this market," Al Dhaheri said.

Headquartered in Abu Dhabi, UAE, the NPCC is a joint venture between industrial investment holding company Senaat and Consolidated Contractors International Co. The group employs mnore than 8,000 staff and is a major EPC contractor, with focus on services in the Arabian Gulf and India.
The group recently celebrated the launch of the largest oilfield platform in the UAE, via its Abu Dhabi fabrication yard, the largest in the Middle East and North Africa. The breabulk move was completed as part of the company’s work for the Abu Dhabi National Oil Co.’s Umm Lulu field.