05 April 2016
Company of the Month April | YPP Europe
YPP Europe B.V., an oil & gas company based in The Hague, mainly focuses on the upstream sector, notably drilling of oil and gas wells. YPP Co. originates from Iran where the mother company is based. The European office was founded last year by Mohammad Reza Bahiraei, owner of YPP Co. Iran, together with its Managing Director to be, Mohammad Reza Mashhadi. The two met one year earlier during Mr. Bahiraei’s visit to the Netherlands as part of an Iranian trade delegation headed by Tehran’s chamber of commerce. YPP now operates from ‘The Bridge Office Building’ in The Hague from where it aims to connect with partners, companies and sellers from Europe and Canada, aspiring to eventually set-up a joint venture with another directional drilling company in Iran.
“The investment and reputation from past tenders comes from our part. The people, machines and expertise has to come from our joint venture (JV) partner’s part“, says Mohammad Reza Mashhadi, Managing Director at YPP Europe. “As such partnerships and JVs would entail heavy investment from our part, we are careful in the selection of our prospective partners.”
Although active in the automotive and petrochemical industry as well, the company’s current focus is on providing directional drilling equipment and services for drilling projects in Iran. “Drilling wells at multiple angles, not just vertically, makes it a lot easier to reach and produce from oil and gas reserves. It also allows to drill for multiple wells from the same vertical well bore, thereby reducing the wells’ environmental impact”.
Image: a visual representation of operating direction drilling equipment.
YPP Co., located in Teheran, Iran, is the official sales representative of its partners SJ Petroleum Machinery; SINOPEC China, Nelson Energy Technology of Hong Kong for the supply of drilling equipments and Jiangsu Chengde Steel Tube Share Co.,Ltd of China for the supply of Casing/Tubing pipes used in oil and gas wells.
The recent removal of nuclear related economic sanctions which were imposed on Iran from 2012 onwards poses new opportunities for YPP Europe. “Although there are still numerous challenges ahead, these recent developments have created many new opportunities for us. After being put on hold for so many years, Iran will certainly seek to gear up in order to increase its output of oil in the upcoming years. There is a demand for new technology and the transfer of such technology in Iran now. At the same time and due to the recent downturn of the Oil & Gas industry in Europe, European upstream oil & gas companies are looking for new business opportunities, which creates a great potential market for us. From our new establishment in The Hague, our main goal is finding local partners and clients that want to connect with the Iranian oil & gas industry, plus facilitating tender participation to European oil & gas service providers for projects in Iran.”
Establishing in The Hague
Although residing in The Hague himself, the choice for settling in The Hague didn’t derive from personal motives, according to Mr. Mashhadi: “With its close proximity to the downstream oil & gas sector in Rotterdam and Schiphol airport, The Hague is the Dutch centre for the upstream oil & gas industry. We are very pleased that The WestHolland Foreign Investment Agency were able to help us on matters as finding suitable service providers for tax & legal advice, introduction in relevant networks and bringing us in on contact with the local authorities.”
Whilst located in The Netherlands now, a lot of his business is done abroad – particularly in Iran. “Since I grew up in Europe from my early childhood, studied and conducted business in the Netherlands, the switch to the Iranian business climate was a rather radical one– culture-wise”, says Mashhadi with a smile on his face. “I came to understand that in doing business with Iranian businessmen, a ‘yes’ can mean a ‘no’, a ‘maybe’, and sometimes even a ‘yes’. In Holland, ‘yes’ means ‘yes’ and ‘no’ means ‘no’, which was an eye-opener at first but saved me a lot of time in the long run”.
From left to right: Mohammad Reza Bahiraei, owner of YPP Co. Iran, together with the Managing Director of YPP Europe, Mohammad Reza Mashhadi.
YPP Europe B.V. will be at the Iran Oil, Gas, Refining & Petrochemical Exhibition 5-8 May 2016 Tehran. You can find them in Hall 26A under the name of YPP Co.
For more information about YPP, please visit their website.
The Hague is home to a large cluster of Oil & Gas companies, mainly in the upstream sector, with household names such as Shell, Aramco, Total, Schlumberger and CB&I. Want to read more about the oil & gas sector in WestHolland? Please click here.