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Case Study on Al Hassan Engineering published in OER May 2009 Issue (12 May 09)

Experience counts:Despite talks of a recession and economic slowdown, Al Hassan Engineering has sizeable projects to execute.
Sunil Fernandes reports

AL Hassan Engineering Co (AHEC) is a company that has had a stellar track record in executing projects across industries. In fact, in the field of power generation, the company has installed approximately 40 per cent of the generating capacity of Oman. AHEC provides electrical, mechanical, instrumentation and civil contracting services to an array of industries. Over the years, the company has performed well, completing a number of major projects. “In 2008, the company saw its turnover increasing by 28 per cent in comparison to 2007 and strong and significant order intake. In fact, the order intake will take us through 2009,” says Peter Hall, CEO of the company.

Healthy order book
In the oil, gas and petrochemicals sector, the company was awarded at the beginning of 2008, an EPC contract from Petroleum Development Oman (PDO) for their Full Field Water Injection project at Nimr. AHEC is on schedule for the project which is approaching 50 per cent completion and it has successfully completed one year without a ‘Lost Time Injury Incident.’ For Korean company, GS Engineering, AHEC is in the closing stages of completing two major civil, mechanical and pipework contracts, one on the Sohar Aromatics plant and the second at Salalah Methanol plant.

In the early part of the year, AHEC secured a multi-million dollar contract for the Burhan West and Harmal Pipeline project from the government gas department. The project which will be managed by PDO, further strengthens AHEC’s reputation as one of the few contractors in Oman having capabilities to handle exotic materials such as duplex stainless steel (DSS). As far as the power sector is concerned, AHEC has an extraordinary record in the field, having installed approximately 40 per cent of the generating capacity of Oman. AHEC is currently in the closing stages of completing what will be the largest power plant in Oman. Working with the French manufacturer Alstom, the 1,000 MW gas turbine combined cycle power plant for Sohar Aluminium will be fully commissioned in the coming months. During 2008, AHEC completed work on the installation of the largest power plants on the PDO system at Mukhaizna (250 MW) & Qarn Alam (125 MW). In addition, AHEC is currently executing the job of once-through heat recovery steam generators (HRSG) contract for Gulf Steam Generators – a subsidiary of NeM Netherlands and a leader in the field of steam generation. Another project involving steam generating equipment is the cogeneration plant being executed for Hirbodan-HICO at ORPC in Mina Al Fahal, which includes two heat recovery steam generators and one auxilliary boiler.

Tapping the regional market
In 2009, AHEC made its entry into the regional market, securing an order from Siemens to undertake civil works associated with a new Dubai Electricity and Water Authority’s substation in Dubai. In the water sector, AHEC secured the civil work contract from Korean company Hyundai Rotem for the Seeb Wastewater treatment plant which will be completed for Haya Water over the next two years. AHEC has implemented several initiatives in the areas of communications, IT, quality, procurement, human resources and corporate social responsibility in 2008. “The company went in for a major revamp of its website keeping in mind its global audience of potential partners, job seekers, customers, journalists and investors. Google analytics reports have shown a 150 per cent increase in the number of unique website visitors,” says Hall.

AHEC is also undertaking other systemic improvements. It has expanded the existing Oracle based ERP to include areas and departments that have hitherto not been covered. It has seen significant savings in the areas where this system is currently operational. In order to further streamline its procurement function, AHEC moved part of its procurement processes online via ‘Tejari Transact’, a Business-to-Business (B2B) electronic marketplace.

Omanisation has always been a strategic priority for AHEC. Continuing the drive of inducting quality Omani manpower, qualified engineers were recruited in different disciplines of the business. AHEC’s key corporate social responsibility initiatives in 2008 include sponsoring International Conference on Harnessing Technology and BG Energy Challenge.

An enviable track record
From a small construction office in 1982, to the first contracting company listed on Muscat Securities Market in 1998, AHEC has come a long way in being recognised as a major EPC (engineering, procurement and construction) company in Oman. Execution experience of around 100 contracts for some of the leading companies in Oman in oil, gas, petrochemicals, power, water and wastewater sectors and its credentials as a member of the Al Hassan Group are amongst the reasons for AHEC being considered the preferred partner for nation-building projects.

The cornerstones for AHEC’s continuous success in project execution are its excellent capabilities in resource management and mobilisation, HSE, quality, procurement, fabrication and engineering. Health, Safety and Environment (HSE) is a top priority for AHEC. The company’s HSE standards are legendary for which it has won numerous awards from customers, industry associations and international EPC contractors. During 2008, AHEC has set new benchmarks in HSE. The company has driven 12.8 million kms and have worked 13.4 million man-hours for all projects without any Loss Time Injury (LTI). AHEC’s Quality Management System has been accredited with ISO 9000 since 1996. It is currently ISO 9001:2000 certified. The company has executed many projects as joint ventures (JVs) with international EPC contractors like SNC Lavalin, Stone-Webster and BHEL.

The company has its own full fledged fabrication facility at Muscat which allows it to pre-fabricate a number of items in a controlled environment, thereby, saving time and cost. The company continues to build upon its already enviable reputation in the construction and EPC industry by being able to utilise skilled and experienced design and engineering people.

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