Growth in Intertek’s asset integrity management solutions driven by the surge in regional infrastructure and energy investments
03 Jun 2014
Companies and governments are allocating 15% of their budgets in asset integrity management
Abu Dhabi, UAE - Intertek, a leading provider of quality and safety solutions worldwide, underlines the importance of effective asset integrity management at a time when trillions of dollars are being injected into new infrastructure and energy projects in the region. With approximately US$ 1.4 trillion-worth of major projects in the pipeline in the Middle East, and the crucial need to raise quality standards and manage these assets to international standards, governments and National Oil Companies (NOCs) are deciding whether to further invest in extending the lifespan of their mature energy and infrastructure assets or to decommission them and commit to larger-scale investments in new assets.
According to Steve Anderson, Global Director, Intertek Asset Integrity Management Services says: “The energy sector in the Middle East is growing phenomenally compared to other parts of the world, and companies increasingly realise the importance of implementing international standards of best practice when it comes to preserving both their existing and new, valuable, multi-billion dollar assets . Our AIM services can not only extend the lifespan of their assets, but also help reduce down time and increase profitability.”
The region is expected to spend US$ 740 billion on its energy sector between 2013 and 2014, according to Apicorp, which is affiliated to the ten-nation Organisation of Arab Petroleum Exporting Countries (OAPEC). In the Gulf, Saudi Arabia remains at the top with expected investments of US$ 165 billion allocated for the oil, gas and energy sector, followed by the UAE at around US$ 107 billion investments in its energy sector for the same period. The Gulf is also the most promising market globally for solar energy with investments estimated at one trillion dirhams (US$ 270 billion.)
Infrastructure investments are no different. Saudi Arabia alone has plans to spend US$ 200 billion into projects to expand its power and water desalination networks. The Arab region is spearheading some of the global infrastructure developments in certain sectors, such as rail where over US$ 156 billion worth of projects are planned or under way, covering a landmass of 15 million square kilometer and a sheer 34,000 kilometres of rail tracks.
Hussain Al- Atrakchi, Regional Managing Director for the Middle East, North Africa & Pakistan, says: “These substantial investments need to be protected and regional governments realise that ensuring asset integrity is critical, and have developed a no-tolerance approach to failure, because failure puts both people’s safety and the environment at risk. It also obstructs operations and dents profitability.”
Steve Anderson adds: “Stricter government and industry regulations are being introduced and global and regional companies operating here have been paying attention. They are increasing their investments in their Asset Integrity Management programs to meet these regulations, both on new projects and to keep up existing assets. Asset integrity is now embedded in projects at the start, from conception, through construction to decommissioning, where Intertek provides industry specialists and engineering support in all areas including design, process safety, mechanical integrity, inspection and maintenance, operational and process support, corrosion, metallurgy, and risk analysis. Today we know more about the high operational costs of ageing assets so companies and governments are now allocating approximately 15% of their budgets into ensuring that new assets are safe, reliable and operating efficiently, throughout their life cycle.”
While these investments in Asset Integrity Management are not currently implemented on a large scale, it is the foreseen trend in the region to implement pre-emptive strategies that will mitigate future risks, losses or costs.
About Intertek
Intertek is a leading quality solutions provider to industries worldwide. From auditing and inspection, to testing, training, advisory, quality assurance and certification, Intertek adds value to customers’ products, processes and assets. With a network of more than 1,000 laboratories and offices and over 36,000 people in more than 100 countries, Intertek supports companies’ success in a global marketplace. Intertek helps its customers to meet end users’ expectations for safety, sustainability, performance, integrity and desirability in virtually any market worldwide. Visit www.intertek.com.
Issued by Borouj Consulting. For more information, please contact: Randa Mazzawi randa@boroujconsulting.com or Mayssa Makhlouf mayssa@boroujconsulting.com at Tel: +9714 3403005, Follow us on Twitter @Borouj.
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