By Sarah Byrne
THE DAYS of ‘do and charge’ are over, according to Steve Dropulich, the managing director of services group Valmec.
Speaking with Oil & Gas Australia, Mr Dropulich said in current challenging market conditions, clients require some certainty around costs and turnaround times.
“The days of do and charge, and she will be ready when she is ready are slowly disappearing,” he said.
Having entered the market around the time of the fall in commodity prices, the company’s lean model has enabled them to grow in a market where the majority of companies are retracting.
“In a roundabout way, we are starting off with a low base and seeking to grow, so we will experience growth.”
“Whereas, some of our competitors and larger players expanded significantly during the boom and are now having to retract very quickly in order to survive,” he added.
In response to client’s needs, Mr Dropulich said Valmec offers fixed prices and firm turnaround times, which was a key factor in the company recently securing a long term services contract from Origin on behalf of Australia Pacific LNG (APLNG).
Mr Dropulich said an ‘up kick’ in upstream coal seam in Queensland was expected as a result of the LNG trains coming online and producing substantial cash flow.
Valmec’s strategy has been to get involved and build relationships early in the project and then carry this through to working on service and maintenance later down the track.
“We strive to provide the whole package from construction through to maintenance and commissioning in upstream. We see growth in the upstream expansions,” he said.
In March, Valmec was awarded a contract to provide technicians, equipment and parts as part of its preventative and corrective maintenance service to Origin as joint venture partner and operator of APLNG’s upstream gas compression and power generation assets located in south west Queensland.
The contract has an estimated value of $24 million and is for an initial period of two years with extension options for a further two years.
Service works under the contract commenced immediately and are managed from the group’s facilities in Dalby.
Pleased with this contract award, Mr Dropulich said Valmec will continue to back itself and provide a lean, efficient solution for clients.