Oil attacks: What’s next for Saudi Aramco and world oil markets?

It was the worst attack on Middle East oil facilities since Saddam Hussein set fire to Kuwait’s oil wells in 1990.

Drones – or possibly cruise missiles – traveling 500 kilometers (310 miles) across Saudi territory undetected hit at the heart of the kingdom’s oil industry and knocked out five percent of the world’s oil supply.

As a result, oil prices spiked almost 20 percent. That is still lower than the recent $85 height in October 2018 when tensions between the US and Iran were ratcheting up.

Saudi Arabia believes it can have the facility back up and running in a matter of weeks, but if it takes more than six weeks to fix the plants and restore production, oil prices could head towards the $85 a barrel mark. So the situation reflects a real test for state-owned oil giant Saudi Aramco.

The whole world ask why Saudi Arabia’s billion-dollar defences failed to protect its oil facilities and how it affects oil prices and what will be next?

Aramco already has begun shipping equipment from the U.S. and Europe to rebuild damaged facilities, said Fahad al-Abdulkareem, the general manager of southern operations at Aramco.

Saudi officials say there is little sense of calm at the highest levels of the company and the Saudi government, however. It could take some contractors up to a year to manufacture, deliver and install made-to-measure parts and equipment, the Saudi officials and the oil contractor said.



NLNG awards $10bn Train-7 EPC contract to Saipem, Daewoo, Chiyoda.

The Nigeria Liquefied Natural Gas Company, NLNG, announced that SCD Joint Venture, JV, Consortium, comprising Saipem of Italy, Japan’s Chiyoda and Daewoo of South Korea, has emerged the preferred bidder for its Liquefied Natural Gas Train 7 project.

The announcement was made by the Managing Director of the Nigeria LNG, Mr. Tony Attah, at the Letter of Intent Signing Ceremony in Abuja.

He noted that with the presentation of the Letter of Intent to the SCD JV Consortium, the group had been awarded the contract to undertake the Engineering, Procurement and Construction, EPC, for the Train 7 project

He said, “Those in the service industry are not left out with the target to assemble over 70 percent of all non-cryogenic pumps and control valves in-country. Other spin-off opportunities include logistics, equipment leasing, insurance, hotels, office supplies, aviation, haulage, and many more. “The target job numbers are very exciting.  At its peak, the project will provide over 40,000 direct jobs and over 100,000 indirect and induced employment of over 100,000 workers. “Beyond the project, there is also huge scope for local businesses to build capabilities in the maintenance of LNG plants especially in the area of cryogenics.


SNC-Lavalin wins $39m deal from Adnoc-CNPC’s Al Yasat Petroleum

Canada-headquartered SNC-Lavalin has been awarded a general engineering, project management, and technical support services contract from Al Yasat Petroleum, a joint venture of Abu Dhabi National Oil Company (Adnoc) and China National Petroleum Corporation (CNPC), with an estimated value of $39.2m (AED144.1m).

Al Yasat Petroleum’s onshore concession area is located to the southwest of Abu Dhabi and spans 7,800 km², while its the offshore concession area is located to the northwest of the UAE capital and covers six fields with a total area of 582 km².

The offshore area consists of fields at Bu Haseer, Belbazem, Umm Al Dholou, Umm Al Salsal, and Yaser.

Under the three-year agreement, extendable for two years, SNC-Lavalin will partner with Al Yasat Petroleum through its engineering and project support arm, in line with Al Yasat Smart Growth Operating Model.

The scope of SNC-Lavalin’s contract includes conceptual studies and design, front-end engineering and design (Feed), execution planning, detailed engineering for small works, and specialised studies