KANFA

Source: Exec Digital UK

Date :15/11/2007 10:02:59

Off shore success

Since it was established in 2000, KANFA AS has rapidly become the leading topside EPC provider in the North Sea region. Exec UK finds out more

Written By Lucy Mowatt and Produced by Mark Skillicorn

The current Managing Director, Mr Aslak Hjelde, was pleased to explain KANFA’s swift development. He has worked for the Norwegian company since its formation, and explains that its focus has changed drastically over the past seven years. He says: “In December 2000, the company was set to be a supplier of medium and small sized packages for oil and gas companies in the North Sea – but it has done everything else! In the last two to three years we have been topside EPC providers.”

It is now a leading EPC (Engineering, Procurement and Construction) provider to FPSOs (Floating Production, Storage and Offloading vessels). The focus for this has not just been in the North Sea region either – contrary to the original business plan – the demand for these services has been global. Mr Hjelde states that although KANFA only has a small group of clients, their clients’ services are provided all over the world. This means that KANFA’s expertise has been required from Brazil to the North Sea and New Zealand. The company is currently developing facilities in Norway, Dubai, Singapore and Thailand.

Business Partners

KANFA does not send any of its 50 employees to work abroad though. Instead, the company uses a variety of contracted fabricators around the world, with whom it has built long-term relationships. Aslak Hjelde says: “We are always looking for new fabricators, but we do already have a nice group of suppliers and contractors.

Business is based on trust, which is gained from time working together; that’s why we’re looking for long term relationships with all of our suppliers.” He continues to say that these suppliers are not just carrying out a contract, but they are “business partners,” which is an altogether different way of operating. At the moment KANFA is working with Lamprell Plc for its FPSO in western Africa.

Since June 2005 the Sevan Marine group, a company that specialises in building and operating offshore facilities, has owned KANFA. The company’s Managing Director says that this has changed life for the four companies that make up KANFA; they now carry out a large number of contracts for the parent company, while it has also offered them a strong financial background. KANFA-Tec, KANFA Aragon and Mator, work alongside KANFA AS to share expertise and complete contracts on time.

Being part of the Sevan Marine group means that the company also has more access to resources than it would otherwise. As such, all employees have been offered Sevan Marine share options, which has proven to be an attractive incentive to join and stay with the business.

There are also opportunities for KANFA employees to develop their own career path and seek any necessary training. Aslak Hjelde explains that all new recruits are highly educated in their own field and are therefore suitable for the job before they join the company – as such, KANFA does not plan their career, but supports them should they feel the need to develop any necessary skills.

Mr. Hjelde was also keen to point out that the company takes health and safety very seriously. He says that because the company is focused upon engineering, there are a lot of opportunities for accidents to take place, so it has put a lot of effort into Quality, Health, Safety and Environment. In the last seven years the company has not seen any accidents at any of it sites – an impressive attribute.

Environmental concerns

KANFA also holds the ISO 14001 certificate, which was awarded for its environmental protection program. Mr Hjelde explains one of the strategies that the company has been implementing. He says: “We are trying to encourage our partners to have a media conference room, because this will reduce the need to travel and the amount of pollution. It’s very important to us, as every year there is less snow in Norway.”

He explains that many of the company’s clients do not take the environment into consideration when they seek KANFA’s services, which is something that Mr Hjelde would like to see change. He says that KANFA continuously tries to respond to environmental issues by modifying its designs and looking at ways to reduce emissions. “Unfortunately these moves are not always taken into account,” he explains, “because it will have a price impact. However, if we can come up with some major improvements, prices will cease to be important. Attitudes are changing quite rapidly, which is good.”

Significant contracts

The company is keen to ensure the safety of its products and services too, and it has worked hard to earn the ISO 9001 quality assurance certificate. It ensures that the quality of projects is continuously monitored, resulting in customer satisfaction.

The list of project references on the company’s website reinforces just how much KANFA’s quality is respected; the company has customers including Statoil, Norsk Hydro, Halliburton and Conoco-Phillips. The company is currently working on the OLOWI project in western Africa, for which it is developing a complete topside system. It prides itself on being able to fulfil contracts in all conditions, from the harsh to the benign.

Recently the company also signed a contract with Apache North Sea in Aberdeen for the delivery of three gas dehydration systems worth NOK 30 million. This is a substantial contract and will be carried out by KANFA Aragon.

KANFA’s plans for the future mainly focus on retaining its position as the leader in topside FPSOs, while expanding and growing. Mr Hjelde reveals that the company’s turnover for 2007 is due to be better than the US$ 100 million of 2006 and it may start looking into the acquisition of other businesses in the future.