Craig Group

Source: Energy Digital

Date :06/05/2008 16:12:11

From its base in South Africa, Craig Energy is seeing strong growth. Exec reports on the company that offers added service to the oil and gas industry

Written by Jane Fisher and Produced by Alex Smith

South Africa-based Craig Energy Services has only been in operation since 2001 but already the company is achieving steady growth. Country manager Ashley Smith hopes to expand turnover and staffing levels again this year as he pushes out its operations, which offer added services to the oil and gas industries.

“We are working very closely with customers in Angola at the moment,” he explained. “Angola is a large country, and it is developing quickly. Infrastructure is improving there all the time, and over the next ten to 15 years we anticipate strong demand from the oil and gas industry in the region.”

Craig Energy is part of the family owned Craig Group, based in Aberdeen, Scotland. With a proud maritime heritage, the group is one of Scotland’s top 100 companies and is ranked among the top 20 offshore service providers in the North East of Scotland.

With an annual turnover of nearly £130 million, the group has its headquarters in Aberdeen, from where it oversees its five divisions - offshore support, equipment, food services, fishing vessels and leisure. Established in 1933, the group is privately owned and employs more than 1,000 people in the major oil and gas centres around the world.

The majority of divisions are located in Aberdeen and South Africa, with a focus on offshore support and equipment. As a customer-led business, Craig’s focus is very much on tailoring its services to meet individual customer requirements.

In April this year, when the ninth annual Profit Track 100 league table was published in The Sunday Times, the Craig Group was ranked as the 27th fastest growing company in the UK.

A rapid response

Craig Energy is part of the group’s International Supplies business unit, itself a global market leader in oilfield procurement and supplying an entire range of products necessary for all seismic, drilling, exploration and production operations.

With an unrivalled geographical spread and an international network of suppliers, the division services its clients worldwide through strategic locations in Aberdeen and Houston, as well as through Craig Energy Services in Cape Town.

The company offers effective supply chain management and a rapid response with an extensive inventory and wide product range. With recognised international accreditations [ISO 9001:2000], along with its e-business capabilities, it strives to deliver a quality, efficient out-sourced service.

“The company started up here in Cape Town in 2001 and began trading in 2003,” says Smith. “It was designed to support the oil and gas business in West Africa. Angola is second only to Nigeria in production for the industry, and we are in a strong position to support it by sea and air freight from here.

“The country has a voracious appetite for consumables and construction materials, and we are able to supply everything needed. We manufacture nothing but we can supply almost everything, and we are able to source the vast majority of customer requirements from here in South Africa.”

Craig Energy Services’ product categories include Pipe, Valves and Fittings, Electrical, Pumps, Instrumentation, Transmission, PPE (protective clothing), Hand Tools, Heating, Ventilation and Air Conditioning Systems, Chemicals, Environmental Products, Cranes and Spare Parts, forklifts and Spares.

Growing the business

“We are seeing a turnover of approximately R31 million,” says Smith. “Two years ago we saw an increase in turnover of 25 percent, then last year of 15 per cent. We hope to sustain this 15 percent level but overall we are looking for steady growth.

“Our strategic plan is to extend our customer base and to take on extra staff in the near future but we do work on a project basis that can see our business grow suddenly and unexpectedly.”

Craig Energy works closely with one particular customer, Chevron. Wherever Chevron has a key location, Craig is there to offer additional support. In this particular case, the Chevron entity is known as the Cabinda Gulf Oil Company [CABGOC]. “We need to be close to our customers, and they need to know they can rely on us,” says Smith. “They don’t want to place an order and have to chase it upconstantly.

“They need to know we can deliver when we say we can, and that is where I believe our strength and success lies at the moment.”

Investment in the company is ongoing. At the moment the group is developing an IT system that will link its companies, such as Craig Energy, to the internal systems at its headquarters.

“We also have ongoing training programmes to ensure our staff remain up-to-date with current industry standards. As our business grows, our customers’ demands and expectations become more sophisticated,” says Smith.

“Our aim now is to focus on finding new business and then to deliver to our customers in the way we are already doing.

“I believe we have great potential for development. As demand for our services grows, we will remain in a strong position to be able to supply whatever is needed, quickly. efficiently, and at the right price”

Click here to view the corporate brochure on Craig Group