ABC Infracorn Ltd Procurment Engineering Construction

Profile, Background and staretgies

1. Engineering, Procurement, Construction This co. basically used to do the shutdown/overhauling of Nayara(Essar) and Reliance. These two companies are too big to do these kind of yearly shutdowns on their own and hence use companies like RBM to perform shutdown. But lately RBM has grown its business line and has become an EPC player.

2. RBM Infracon Ltd.

3. E&I Company As a contractor Established in 1993 Diversify – Oil & Gas, Green Gas, Solar Energy highly professional, reliable, and safe service provider in the infrastructure service arena , aiming to provide innovative, integrated, and customised solutions tailored to client-specific needs. Specializes in comprehensive services in engineering, execution, testing, commissioning, operation, and maintenance, primarily in the mechanical and rotary equipment sector Its expertise spans various industries , including Oil & Gas Refineries, Gas Cracker Plants, Coal/Gas/WHR based Power Plants, Petrochemical, Chemicals, Cement & Fertilizers.

4. Main line of work Piping Services Plate Work Fabrication and Erection Structural Steel Work Civil Construction Coke Plant Maintenance Tanks, Silos, and More on EPC Basis: Erection of Plants and Equipment: Blasting Cleaning and Painting: Insulation and Refractory Work Work shop Specialists Rail wagon loading Operation and Maintenance services Turnaround services Operation & Maintenance of Heater & boiler Operation and maintenance of Fertilizers and cement plant

5. Rev: 2024- 400 cr , 2025-1000 cr , next 5 yr – 5000 cr. 20-21= 39 cr , 21-22 = 48 cr , 22-23 = 83 cr. Vs Hawkins – 1000 cr Rev

6. ONGC Mr Jaybajrang Mani, Chairman & MD, told that they have clinched a Rs 2000cr, 15yrs deal with ONGC for Oil exploration . The LoI is expected by 30th August. The contract will state that ONGC will allot RBM with 132 wells for digging crude oil and natural gas and they would share it a ratio of 65:35. 65% of the output would go to RBM and the rest 35% would go to ONGC. This means that for 15 long years, RBM can keep on digging crude oil and natural gas from those wells and the chairman has also assured that the revenue potential from this contract can very well go beyond 2000cr. In his own words: “Yeh Project Toh Samander Kee Tarah Hai, Jitna Chaho Paani Nikaal Lo”

7. Solar Project Also he told that they have almost clinched a deal of Rs 500cr, for a Solar project with Reliance . Company has worked on Solar for the past 1 year with Kalpataru and other companies. He said that PAT can grow upto 10% from next year onwards as ONGC project is a higher margin (20-25%) although Reliance can be only 6-8%.

8. Also explained the reason for realisation of lower revenue this Q, the left over revenue will be added in coming Qs. Epitome order is done around 200cr but invoice is not generated and from next month the work will start. The revenue guidance is Rs 400cr for the current financial year and Rs 1000cr for the next . Targeting 5000cr revenue in next 5 yrs. The company is in negotiations with Greenzo Energy, a Gurgaon based company for the Green Hydrogen project. The good news may come in few weeks. He sounded confident. Greenzo has Govt. approvals for Green Hydrogen & Ammonia Projects.https ://www.greenzoenergy.com/

9. Challenges & Working Capital: Delays in material delivery High working capital needs Debt funding options : Rs.250 Cr preferential issue planned along with funding from bank. Management & Operations: 1,700 employees (500 contract-based) Ex ONGC executives hired for project execution The auditor changed due to excessive delays at the auditor’s end. They were not able to comply with compliances on time. Sector Expansion Plans: Exploring coal mining and gas sector opportunities Capex Strategy: Plans to reduce Capex by engaging more subcontractors for larger projects

10. I sent a mail to the Mr. Mani and was surprised that he called me directly on my phone and answered all the queries. He seems to be quite humble and a god fearing person . He listened to me patiently and then answered on most of the queries. Even last week I had a word with Mr. Mani. He is still quite confident in saying that all the plans of the company are as per the original plans and there wont be any problem in the execution. Though he denied to reveal much ( and I was happy for that) he told me to remain updated in screener

11. Initiating oil wells in a greenfield project involves several steps to ensure efficiency, safety, and compliance with regulatory standards . Here's a step-by-step method: Site Selection & Evaluation Permitting & Regulatory Compliance Well Planning & Design Drilling Operations Casing & Cementing Completion & Well testing Production and Facilities Installation Monitoring & Maintenance Continued Operations & Optimizations Each of these steps requires expertise in geology, engineering, environmental management, and regulatory compliance to ensure successful initiation and operation of oil wells in a greenfield project.

12. Step need to be Systematic, Compliant, and Efficient , ultimately contributing to the success of the greenfield project These steps help manage Legal, Financial, and Organizational aspects , facilitating smooth project execution . Here's a breakdown: Project Planning & Feasibility Study Legal & Regulatory Compliance Land Acquisition & Agreement Budgeting & Financial Management Vendor & Contractor Management Project Team Organization HSE Management Risk Management Stakeholder Engagement & Communication Monitoring & Reporting Operational Readiness Post – Implementation Review Administrative steps to ensure successful initiation and operation of oil wells in a greenfield project (35km, 2000 crore, 15 Years ONGC)

13. Project Planning & Feasibility Study Conduct Feasibility Studies: analyze the Economic, Technical, and Environmental viability of the project. Develop a Project Plan: Outline the project’s Scope, Objectives, Timelines, Resources, and Milestones. Project Deptt

14. Legal & Regulatory Compliance Obtain Permits and Licenses: Secure necessary permits from local, regional, and national authorities, including drilling permits, environmental clearances, and land-use permits . Ensure Compliance with Laws: Adhere to local and international regulations related to oil exploration and production, environmental protection, and worker safety. Legal Deptt

15. Land Acquisition & Agreement Secure Land Rights: Negotiate and finalize land acquisition or lease agreements with landowners or government authorities. Community Engagement: Engage with local communities to Address concerns, Ensure compliance with social impact assessments, and Establish good relations . Land Deptt

16. Budgeting & Financial Management Create a Detailed Budget: Prepare a comprehensive budget covering all project phases , including exploration, drilling, completion, and production. Secure Financing: Obtain funding through internal sources, investors, or financial institutions, and ensure financial arrangements are in place. Finance Deptt

17. Vendor & Contractor Management Select Contractors and Suppliers: Issue tenders, evaluate bids, and select qualified contractors and suppliers for equipment, drilling services, and other project needs. Contract Management: Draft, negotiate, and manage contracts to ensure that services are delivered on time and within budget . Contract Deptt

18. Project Team Organization Assemble a Project Team: Form a multidisciplinary team with expertise in geology, engineering, project management, legal, finance, and environmental management. Define Roles and Responsibilities: Clearly outline the roles, responsibilities, and reporting lines for each team member . = Organ.

19. Swo - HSE Management Develop an HSE Plan: Create a comprehensive HSE plan addressing Safety protocols, Environmental protection measures, and Emergency response strategies. Implement Training Programs: Conduct HSE training for all personnel to ensure adherence to safety standards and procedures.(HSE PLAN IMPLEMENTATION) Mgt

20. T- Risk Management Identify and Assess Risks: Perform a risk assessment to identify potential risks such as financial, operational, environmental, and reputational risks . Develop Mitigation Strategies: Establish contingency plans and risk mitigation strategies to address identified risks. Mgt

21. Stakeholder Engagement & Communication Develop a Communication Plan: Establish a communication plan to keep stakeholders, including investors, government agencies, and local communities, informed about project progress . Maintain Regular Communication: Engage regularly with stakeholders through meetings, reports, and updates to ensure transparency and build trust. Engagement

22. Monitoring & Reporting Track Project Progress: Implement monitoring systems to track project milestones, budget expenditures, and compliance with regulatory requirements. Prepare Reports: Generate regular reports on project status, financial performance, HSE compliance, and other key metrics for internal and external stakeholders. M&R

23. Operational Readiness Ensure Infrastructure Readiness: Confirm that all necessary infrastructure, including roads, utilities, and communication systems, is in place before commencing operations . Conduct Pre-Operational Reviews: Perform a final review of all systems, procedures, and equipment to ensure readiness for drilling and production. Readiness

24. Post-implementation Review Evaluate Project Performance: Conduct a post-implementation review to assess the project’s success , identify lessons learned, and make recommendations for future projects . Document Best Practices: Compile documentation of best practices, challenges faced, and solutions implemented for future reference. Review