SRJ Technologies Group PLC has landed another contract win with a leading floating production and storage offloading (FPSO) unit operator in West Africa.
The ASX lister’s proprietary flange integrity equipment – also known as the BoltEx® flange clamps — was recently leased to one of the world’s largest FPSO operators via contracting party EnerMech.
Following a major hot bolting campaign, the FPSO Operator has turned that lease into a contract. It will now recruit SRJ-trained local personnel to use the flange clamps offshore in Ghana and the Ivory Coast.
Show me the money
SRJ has billed the operator A$144,000 for the initial four-week lease but further payments are expected as the equipment remains deployed.
Once the lease period is up, the operator will chase a purchase order to the tune of A$350,000.
This isn’t the first time SRJ has shaken hands with the operator — the engineering services company previously deployed its tech for another hot bolting campaign. Both parties are in talks regarding a phase two scope of works, expected to kick off early in 2023.
Demand for flange management strategies
SRJ CEO Alex Wood said: “We are pleased to announce that SRJ has been awarded yet another major contract to support hot bolting campaigns to a major FPSO operator offshore in West Africa.
“We are seeing an increase in interest from contractors and operators in purchasing or leasing SRJ BoltEx® inventories for flange hot bolting.
“We are also experiencing increasing demand from clients to assist in the development of flange management strategies as part of our wider range of consulting services in asset integrity management.
“With our strategic placement of BoltEx® flange clamp inventories across West Africa and a highly effective nationalisation program, we are now in a unique position to offer swift and effective solutions to this market.”
Why is this tech important?
SRJ’s proprietary tech allows operators to manage a unit’s flange integrity — an increasingly important skill as assets experience wear and tear.
What’s more, rising safety and environmental pressures mean that keeping flanges well serviced is critical to preventing fugitive emissions and ensuring worker safety, thus impacting an operation’s ESG credentials.
With rapid mobilisation, cost reductions and carbon-curbing strategies all key to a business’ modus operandi, SRJ has worked up its BoltEx® flange clamp inventory in key growth markets like West Africa.
Wood continued: “SRJ’s vision is to enable our customers to adopt BoltEx® as part of the standard flange management toolbox.
“Training is available to operate BoltEx® by own personnel thereby eliminating the impact on Persons on Board.
“The newly launched sales option mitigates many unforeseen costs typically associated with the rented equipment, while offering our clients and partners the freedom and control over the timing and efficiency of the campaign execution.
“We look forward to updating the market on further developments in the coming weeks.”
Business update
In this morning’s announcement, SRJ also flagged a company-wide cost-saving review.
The engineering services firm has landed on strategies to bring A$605,000 back to the bottom line every year following an agreement to amend remuneration packages.
Specifically, remuneration packages to all directors and certain senior management have been cut. In addition, SRJ’s recently retired non-executive director Dr Andrew Mitchell will not be replaced at this time.
The annual savings means SRJ can preserve its financial resources to pursue growth prospects.
In a further update, the company reported that Vermillion Energy, an international energy producer, has also issued an initial A$46,000 purchase order to use BoltEx® across its Australian operations.