The Oil & Gas sector is a booming industry worldwide. We interviewed Mr. Mario Mignacca, Technical & Marine Director of Mozzanica, to learn more about fire prevention.
Good morning, Mr. Mignacca. You are the Technical & Marine Director at Mozzanica and have been working in the fire protection industry for nearly thirty-five years. In your opinion, what are the main fire protection requirements in the Oil & Gas sector?
The typical client operating in the O&G sector needs a reliable partner who can offer effective fire protection solutions based on a detailed risk analysis. In 100% of high-risk cases of this kind, the HAZOP technique or analysis is used. With this method, various stakeholders come together to assess potential incident scenarios and correctly identify the type of risk to be managed. This makes it possible to apply fire protection measures and systems specifically suited to the type of flammable liquid, gas, or other material present in the processing or storage area under consideration.
The client also needs their chosen partner for managing these types of risks to have extensive expertise in all international and local regulations, as well as a thorough understanding of the approval requirements for the materials to be supplied, ensuring compliance with the end user's technical specifications and the environments in which they will operate.
The media often describes this sector as one that is constantly expanding, evolving rapidly, and influenced by geopolitical changes. What is your opinion on this?
Historically, this sector has always been closely tied to geopolitical shifts and various war scenarios, such as those involving Libya, Iran, Iraq, and more recently, Russia. However, even when certain regions become restricted for various reasons (such as the Iran/Russia embargo), new market opportunities consistently emerge, allowing major EPC companies in the industry to continue expanding their business. For instance, in recent years, Saudi Arabia has launched an investment plan worth billions of dollars, extending beyond 2030. This includes large-scale petrochemical plant construction (ARAMCO, TOTAL, etc.) as well as major infrastructure projects, both within the O&G sector and in other industries that remain interconnected with the country’s economic strategy.
What characteristics must a company have to successfully enter this market?
You cannot enter the O&G market without personnel who possess specific expertise in the sector and experience in managing international projects. A company must be well-structured and have prior experience working with major clients who operate according to the methodologies of EPC companies.
In the initial phase, after obtaining various certifications and building a reference list of projects relevant to the market, the company must actively promote its activities to key international operators in the sector. Following this branding and product promotion phase, and after organizing all its internal processes, the company must proceed with qualification procedures for various Oil & Gas companies. This qualification process is quite complex, as the documentation required by end clients and EPC companies is organized by area, including management, certifications, personnel, processes, safety, finance, financial indicators, specific references, and more. Only after completing these qualifications will the company be able to respond to international market demands in Europe, the Middle East, Asia, and the USA. Earning the trust of EPC companies and end users will take time, as these major clients who manage high-risk systems will only entrust the supply of components and systems to new companies after numerous audits and verifications.
Orders can come from clients in different parts of the world. What does this entail?
I can confirm that orders can be placed by clients of different nationalities for various destinations. As I already mentioned earlier, managing complex projects to be installed abroad requires a robust organizational structure in terms of project management, construction, logistics, finance, and more. For international contracts, we typically work with common international reference standards, along with additional local regulations and codes that must be applied as an essential condition for the final handover. Furthermore, for this type of contract, it is crucial to carefully consider the company’s financial commitments in accordance with contractual clauses and various guarantees. I have not mentioned technical and managerial expertise, as these are already fundamental components of companies operating in this type of market.
What are the most difficult issues to resolve when managing an Oil & Gas project, and what is the best way to solve them?
There are no insurmountable challenges, but rather various technical and scheduling complexities that arise during different phases of the project, including design, construction, and material selection.
To successfully manage this type of project, the first essential factor is the expertise of the entire team appointed by the EPC client or the end user. By “team,” I refer to both the partner’s team responsible for supplying fire protection components/systems and the client’s/EPC’s project team. It is crucial to operate as a single entity and tackle the initial challenges together across all phases—system and component design, selection of suitable materials for the specific protection needs and environment, factory testing, on-site construction, and final testing, up until acceptance by the international end user.
Mozzanica also operates in the Oil & Gas sector. What added value can it bring to the industry?
Through its presence in various markets, Mozzanica can effectively leverage past experiences and apply specific insights to Oil & Gas projects. One example is the marine Type Approval certifications, which can serve as a reference for factory testing before delivery to the end client. This can be an added value, even though testing in the sector is already highly rigorous, as it follows a well-defined Inspection Test Plan and Quality Control Plan for each project.
In conclusion, what outlook do you see for this market and for Mozzanica?
I believe that Mozzanica, thanks to its multidisciplinary corporate know-how, international certifications, and worldwide organization, will continue to expand its presence in the market for turnkey integrated fire protection systems in the Oil & Gas sector.