FEG operates its business under five divisions:
The Marine Division has a fleet of offshore support vessels to provide direct support to its customers, mainly in the production phase of oil and gas projects. The Group has taken steps to strengthen its marine business by restructuring the Marine Division into a more regional base operation, and is continuing to purchase new vessels in order to expand its fleet.
Currently, FEG owns and operates a fleet of accommodation work barges and support vessels. Its fleet of offshore support vessels provides direct support to its customers, who are mainly in the production phase of oil and gas projects. Its accommodation work barges provide engineering services such as offshore hook-up and commissioning, offshore conductor piling, hydraulic work-over/ coiled tubing/well stimulation and pipe trenching.
During the year, the Group added two more vessels to its fleet. It also signed a contract for the construction of two multi-functional support vessels for deep sea operations and FEG expects to make further purchases in the year ahead.
The Marine Division is expected to do better in the year ahead as the Group is seeing much better business activities in the first quarter. Based on these activities, the Division is confident of generating more business.
Oilfield Services Division:
The Oilfield Services Division provides services such as agencies, logistics and procurement and other general support activities. It provides such services to oil and gas companies worldwide.
Its move into oil trading and other related activities has helped to broaden its revenue stream, thus enabling it to contribute significantly to the Group’s revenues. The Division has earned a reputation in the oilfield services industry for delivering timely, efficient and cost-effective solutions and services to major oil and independent oil production companies. Therefore, the future opportunities for its services are good.
Oilfield Projects Division:
The Oilfield Project Division executes various projects that are related to the offshore marine and oil and gas industry, ranging in size from small facilities to multi-million dollar heavy oil facilities.
The future for the Oilfield Projects Division continues to improve from the previous year and the outlook is positive as oilfield activities have picked up.
Drilling Services Division:
During the year, the Group has set up its Drilling Services Division with the goal of entering the offshore oil drilling business through its order of two technically advanced jack-up drilling rigs. This Division’s objective is to develop itself into a full-fledged drilling business for the oil majors and national oil companies. In this way, the Group will be adding a more integrated portfolio of offshore services for its oil and gas customers.
In 2011, the Group established TS Drilling Pte Ltd in conjunction with its consortium partners to order two jack-up rigs. These will be FEG’s first pair of of jack-up drilling units. These jack-up drilling rigs will be capable of drilling in a water depth of about 375 feet. The expected date of delivery is late 2013. These purchases are in line with the Group’s strategy to invest for growth and expand its business activities to related segments of the oilfield industry.
During the year, the Group has secured the commercial rights for two coal concessions and is in the process of negotiating for several others. Its team of geologists are conducting various surveys and feasibility studies at various locations in Indonesia. The Resources Division expects coal production to start at end 2012. The production is expected to start contributing to the Group’s revenue in the year ahead. The Group’s long-term plan is to accumulate coal reserves and operate its own mines and develop this Division into a significant player in this business.