CURRENT ISSUE
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| Offshore Expertise |
| Cover Story | |
| By Joanna Miller | |
| Thursday, 19 July 2007 | |
 Global Industries continues to live up to its name, expanding its reach in offshore construction markets worldwide. As a full-service offshore construction company, Global has continued to expand and diversify, says CEO B.K. Chin. “We are expanding our global footprint through organic growth and strategic partnerships,” he notes. “We are a growing company moving forward.” The company describes its acquisition efforts as “aggressive when periodic busts driven by sharp drops in oil prices produced extraordinary opportunities for those prepared to seize them.” Global has acquired numerous companies that have fueled its diversification. The original diving company, Global Divers, added pipelaying personnel and equipment when it acquired Pipelines Inc. in 1975. During the oil bust of the mid-1980s, Global began a series of major acquisitions that moved the company up the ranks of the major offshore companies. Those acquisitions included Sea-Con Services, Santa Fe Offshore Construction Co., Teledyne Movable Offshore, Divcon International, ROV Technologies, The Red Adair Co. Norman Offshore Pipelines and selected assets from SubSea International, J. Ray McDermott, Halliburton and Oceaneering International. Targeting Growth Opportunities As Global continues to expand its reach, Chin says, it is working to target countries and regions that have growing oil and gas production industries. It is also expanding the types of products and services it offers. “Traditionally, Global has been well known for installation of pipelines and platforms and diving,” he says. “Now, we are growing our products and services to include integrated projects, deep water/subsea developments, inspection, repair and maintenance and decommissioning work.” Partnership Approach The company is exploring partnership opportunities in the Middle East and Asia-Pacific regions when it pursues integrated projects, Chin says. “We will partner with local fabrication companies to build some of the facilities,” he says. “Additionally, we are working with specialist engineering companies, when necessary, to provide the supplemental engineering services.” Global took a similar approach with its PRP project in India for the National Oil Co., ONGC. In that project, Global teamed with the Indian company, Larsen and Toubro. “We do that around the world wherever we believe it could add value in securing and doing the work,” he explains. The company is currently operating in the U.S. Gulf of Mexico, Latin America, West Africa, Middle East, India and Asia-Pacific. Its recent efforts in the Middle East are focused on the United Arab Emirates and Saudi Arabia. It is also growing into the Mediterranean, Brazil and Australia and tailoring its services to fit each area. “We have to pick and choose what is suitable for the area,” he says. “When you talk about Brazil, parts of West Africa and the Gulf of Mexico, you’re dealing with deep water and subsea developments. Generally, for the Middle East and Asia Pacific regions, projects tend to be contracted on an integrated basis and they are in shallower water depths.” Strategic Initiatives Global is working on several strategic initiatives as it continues to grow. These initiatives include: • Increasing its market share for deepwater projects, with depths of more than 1,000 feet – “Global’s answer is to increase our presence,” the company says. “There is a trend in the industry toward deepwater and we anticipate that trend to accelerate in the future. The deepwater areas have not been explored as extensively as the shallow areas, therefore there is more opportunity for large oil and gas discoveries. “That is the reason the oil companies are devoting increasing amounts of their development budgets to deepwater.” • Expanding its presence and services in the Middle East, Latin America and Asia-Pacific – “Global’s answer is local presence, dedicated business development, execution excellence and maximizing local content,” the company states. The Latin America Business Unit, based in Ciudad del Carmen, Mexico, manages the South American and the Caribbean projects. The other operating regions are similarly structured. • Upgrading existing assets to improve capabilities – “Global’s answer is upgrades to several vessels and welding facilities,” the company says. Global’s engineering and offshore construction personnel designed and installed enhancements to one of its offshore construction vessel, the Hercules, enabling it to lay pipe in water depths to 10,000 feet, or nearly two miles deep. These enhancements included the addition of dynamic positioning; this allows the vessel to maintain position in deepwater by integrating the computerized thruster controls with satellite positioning, the company notes. • Broadening its knowledge – “Global answers with programs to ensure knowledgeable, educated personnel,” it says. The project management book course is taught by the Project Management Institute over a period of five days. The program includes project integration, scope, time, cost, quality, human resource, communications, risk and procurement management. More than 70 people participated at its latest offering. ‘Global Family’ Global employs approximately 5,000 people and maintains a fleet of 30 floating vessels. It reported sales in 2006 of $1.2 billion, more than 70 percent of which was secured outside of the United States. “We are a people company,” Vice President Jim Gallagher explains. “We typically use the term ‘global family.’ Our people have a strong chemistry working together. “We think globally and act locally, being able to package our work in such a manner that fits local culture and requirements.” Founded by Bill Doré, the company has grown with a family approach, he says, with people working closely together on a daily basis. “That started off in Louisiana, but we use that model wherever we go,” he emphasizes. “Caring is a part of the culture. We look out for people in good or bad times. That also creates chemistry. When new people join, we start growing the family, and that’s how core values are brought to everywhere we go internationally.” The company says it asks what success means to each customer, and then measures its success against those needs. “Success means meeting or exceeding the customer’s needs, safely, reliably and on time,” it notes. Safety Matters “We believe strongly in safety; it’s our first priority,” Chin says. “We pride ourselves on our best-in-class safety record and our ability to execute flawlessly. When you do work safely with good people and execute the work well, it leads to reliable delivery and quality work.” Global says its safety efforts include: • Developing a culture with a commitment to strive for the highest level of safety and performance • Safety, health and environment are top priorities • Using the Behavior Based Safety Initiative to encourage employees to utilize positive reinforcement to increase safe behavior rather than attempting to decrease risky behavior using traditional methods requiring negative consequences • Conducting or supporting training and other safety, health and environmental processes with customers and subcontractors Increasing Demand Chin says Global’s future is exciting. “The market is great,” he notes. “The demand for oil and gas continues to increase for numerous reasons, allowing us more opportunities to secure significant market share and ensure sustainable growth.” Future Investments The company is working to position itself around the world, and has the resources to do it, he says. “We are cash rich,” he adds. “That is always a good thing. We are going to be investing in people by training and adding to our talent pool. “We are upgrading our fleet of vessels so they have operating features to work more productively and with increased capabilities. “We are also investing in technology and new vessels, which will allow us to penetrate new geographies and new products and services to grow the company further,” he adds. E+P |
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