Sep 2006 Financial News

Neal & Massy extends grasp on energy

Sep 21, 2006

The Neal and Massy Wood Group yesterday expanded its reach into the local energy market after agreeing to maintain all of bpTT’s plant and operating equipment for the next five years.

During a news conference at the Hilton Trinidad, Port-of-Spain, bpTT CEO and chairman Robert Riley estimated the move would take bpTT’s safety standards to a higher level and support occupational safety and health legislation.

Looking ahead, Riley noted that in three to four years bpTT’s platforms and equipment would need a more structured approach to maintenance for the company to remain reliable.

Currently, bpTT’s maintenance department has 29 permanent employees and 200 contract workers.

While the cost of Wood Group’s services was not given, Riley quoted US$50 million per year as the amount bpTT currently spends on maintenance.

This figure is expected to rise, he said.

However, Riley also said he did not expect the number of bpTT’s maintenance workers to decline.

Neal and Massy Holdings chairman Arthur Lok Jack said workers would actually benefit from the agreement.

“During this agreement, the Neal and Massy Wood Group will offer permanent employment with full benefits, training development and career opportunities to many, many contract workers,” Lok Jack said.

Neal and Massy Wood Group is a 50/50 joint partnership between Neal and Massy Energy and the Wood Group of companies.

Lok Jack called on local contractors to seek similar partnerships so they can leverage what they learned for the future.

Wood Group chairman Sir Ian Wood said T&T’s current situation paralleled that of the United Kingdom in the 1970s, when there was a need for local service providers in the oil and gas industry.

He added that foreign expertise would help develop locals and transfer technology and know-how.

“For the first two or three years it is totally going to be about investing in the confidence in the local experience. Fortunately, there is a very good education base (in T&T) and there is a very good basic indigenous capability here,” Wood said.

The Neal and Massy Wood Group was responsible for the engineering and design for the EOG OilBird Platform which is the largest offshore platform ever built in T&T.


Source:
Sherwin Long
The Trinidad Guardian
Thursday 21st September, 2006

http://www.guardian.co.tt/business1.html