Gulf Capital buys majority stake in OCB Oilfield ServicesStaff writer ▼ | February 18, 2013
OCB is specialised in supplying rig crews to offshore oil and gas drilling companies. With operations in the UAE, India, Indonesia, Saudi Arabia, Qatar, Thailand, Brunei, Singapore, Mozambique and Cameroon, the provides its clients with fully outsourced human resource solutions.
Recent oil and gas discoveries and announced exploration drilling programmes in Mozambique, Tanzania, and Kenya in addition to further penetration of the South East Asia market (Thailand, Brunei, and Malaysia) offer significant incremental growth upside as OCB currently serves approximately 20% of the estimated 35-40 significant offshore rig operators globally.
"OCB is the number one company when it comes to this niche market of outsourcing crew and providing logistics services to oil and gas drilling companies in the Middle East, South East Asia and Africa. It has grown rapidly in recent years, with an impressive list of clients. Its upward trend is expected to continue as offshore oil and gas drilling activities increase significantly in the future," said Karim El Solh, chief executive officer of Gulf Capital.
"As OCB embarks on an aggressive regional expansion, the funding and support of Gulf Capital will be instrumental in helping us achieve our ambitious regional growth plans. I look forward to Gulf Capital's active participation on our Board and to its contribution to the company's strategy, operational improvements, financing and regional expansion," said Vaibhav Kanade, founder and CEO of OCB.
The global market for offshore crew supply and related services (excluding North America) is estimated to be in excess of $1 billion annually. According to industry experts Douglas Westwood, offshore oil and gas production in the OCB's key Middle Eastern markets of Saudi Arabia, Qatar and the UAE is forecasted to grow by a compounded annual growth rate of 4.6%, 7.2%, and 5.6%, from 2010-2017, reaching 3.5 million, 3.8 million and 2.0 million barrels per day in those three markets respectively.
Mr. Westwood also forecasts the Middle East offshore oil and gas industry to witness significant capital expenditures over the next several years, growing at a compounded annual growth rate of 6.5% from 2010 to 2017 to reach US$ 8.3 billion, with Saudi Arabia, Qatar and the UAE growing at compounded annual growth rates of 9.3%, 3.6% and 3.3% respectively.
Rig and crew, the largest component of offshore expenditure, is forecasted to grow at an annual rate of 6.8% from 2010-2017 in the Middle East. This expansive growth in OCB's core markets will drive increased opportunity. ■