Oman Lng Projects petropipe

Baker Hughes secured EPC contract for Oman LNG project

Oman Liquefied Natural Gas LLC, awarded the project related to Engineering, Procurement and Construction (EPC) for the turbo-machinery scope of its debottlenecking project. The project has been awarded to international energy firm, Baker Hughes.

Under the terms of the deal, Baker Hughes will supply the new helper motors, variable-frequency drives and deliver the engineering, procurement and construction (EPC) for the said project scope.

Once the project completed, Oman LNG production capacity will be increased to 10 per cent equivalent to 11.4 million metric tonnes per annum (MMTA)

Debottlenecking is the process of highlighting specific areas in production trains, machinery equipment or the workflow configuration that would limit or constrain the flow of product inside the plant.

By optimizing plant operations, overall capacity can be raised further. The debottlenecking project comes as part of Oman LNG’s far-sighted strategic projects that will boost its efficiency.

Front-end engineering design (FEED) for the project completed in 2019 and awarded to Baker Hughes in Q4 2019.

The project will be executed over the next two years.  The first train completion by the end of 2020, followed by the second LNG train in 2021, and the third LNG train by 2022.



Total awards two Mozambique LNG agreements to Worley

Worley has been awarded two master service agreements by Total E&P Mozambique Area 1 Limitada (Total) to provide services to the Mozambique LNG Project. 

Under the MSAs, Worley will provide in-and-out of country services, including engineering, consulting and specialist engineering for delivery of onshore and offshore (subsea) facilities. The services will support the development of the new LNG facility. 

The services will be executed by Worley’s local Mozambique operation with support from Worley’s global businesses including Advisian. Worley has supported the LNG development, located on the Afungi peninsula in Cabo Delgado province since gas was first discovered there in 2010. 

We are pleased to continue providing services to the LNG development and to support one of Africa’s largest projects. Through the MSAs, we will help Total and its partners in the Mozambique LNG Project meet the world’s changing energy needs,” said Andrew Wood, Chief Executive Officer of Worley.


samsung ct projects-petropipe

Samsung C&T bags construction contract for EWEC’s Fujairah F3

Seoul-based and Korea Exchange-listed (KRX) Samsung C&T has been awarded the $948.5m contract for the construction of the 2.4GW Fujairah F3 combined cycle power plant by Japan’s Marubeni Corporation.

Fujairah F3 is Emirates Water and Electricity Corporation’s (EWEC) thirteenth project to be developed under the independent power producer (IPP) model. The project will be constructed between the existing Fujairah F1 and Fujairah F2 power and water plants.

Earlier this month, Abu Dhabi Power Corporation (ADPower), which is owned by Abu Dhabi Development Holding Company and Japan-based Marubeni Corporation formed a consortium to begin construction works on Fujairah F3.

In a statement, Samsung C&T said that it will carry out work on the project as an exclusive engineering, procurement, and construction (EPC) contractor. The construction phase of the project is expected to complete in April 2023.

The company added that one of the major reasons behind it winning the contract has been its “extensive experience in building many power plants throughout the Middle East”.

Once complete the plant will fulfil power needs of nearly 380,000 homes in the northern region of the UAE.

The government of Abu Dhabi will indirectly own a 60% stake in the project, while the remaining 40% will be owned by Marubeni Corporation.


Siemens news- Petropipe

Siemens wins modernization contract for Middle East jackup by Arabian Drilling Company

Siemens was awarded a contract by Arabian Drilling Company to modernize a complete and integrated drilling-drives lineup, including auxiliaries and controls, that will be installed on an offshore jackup drilling rig for a customer in the Middle East. In addition to new features and benefits, the upgrade will also enable the customer to meet the latest safety standards. Delivery of the new system is planned for the early part of 2021.

The contract includes engineering, design, manufacturing, and delivery of the fully integrated modernization based on Siemens’ BlueDrive™ technology. The Siemens solution, known as Master2Blue, will use the footprint, cable network, and communication principles of the existing system, enabling quick, modular-style installation, commissioning, and startup. The system is a DC power grid that includes power electronics, controls, and cooling of 10 integrated variable speed drives.

The BlueDrive system, developed and refined over the years to meet the offshore industry’s demanding requirements, is ideal for energy distribution in propulsion and drilling systems. The BlueDrive system is an efficient, environmentally friendly multi-drive solution that provides high levels of reliability, availability, and ease of service, with low emissions and an option for remote support.



Descon wins 2 projects from ADNOC

Descon has recently won 2 projects from ADNOC. One is a CON 17-075 – Rigging Trade term Contract for Das Island from ADNOC LNG, while the other one is for replacement of welded valves in 46″ NMGL at CTU-Das-L . ADNOC is one of Descon’s most important clients, and ‘EPC’ Retrofits is a segment that Descon wishes to increase its competence in, especially in the UAE region. Hence both these jobs are of great strategic importance for Descon.

Abu Dhabi National Oil Company (ADNOC) is a diversified and integrated group of energy companies. ADNOC’s activities include exploration and production of crude oil and natural gas; refining, marketing, supply and transportation, and the manufacture and distribution of petrochemicals.

Internationally, Descon Engineering Limited is a multinational engineering company renowned for its quality, safety and on-time delivery of projects and products. It specializes in design engineering, manufacturing, construction, maintenance, automation & control. It operates in diverse sectors such as Oil & Gas, Cement, Power, Hydro Power, Water, Fertilizer.

Descon has been executing projects on EPC basis since the early 1990s based on in-house facilities for engineering design, manufacturing/procurement, construction, commissioning and maintenance wrapped up with the overall project management expertise. The EPC Division is at the forefront of the Company’s strategic direction to ascend the value chain by providing turnkey solutions tailored to the clients’ requirements.


petrofac news- petropipe

Petrofac awarded US$40 million project by Sharjah National Oil Corporation (SNOC)

Petrofac’s Engineering & Production Services division (EPS) has been awarded an engineering, procurement, construction and commissioning (EPCC) contract by Sharjah National Oil Corporation (SNOC), worth around US$40 million, for a project in the United Arab Emirates.

The award demonstrates delivery against EPS’s strategy to secure smaller greenfield and brownfield EPC projects, utilising its footprint and infrastructure in existing core markets.

Mani Rajapathy, Managing Director, EPS East, commented:

“We are delighted to be awarded this contract by Sharjah National Oil Corporation, a longstanding Petrofac client that we have worked with successfully for many years. The award is important strategically as EPS looks to develop its track record in smaller greenfield and brownfield EPC projects. It also leverages Petrofac’s best-in-class expertise and experience in upstream gas and represents another win in one of our core markets of Sharjah and the UAE. We look forward to delivering a safe and successful project for SNOC.”



Worley awarded two contracts by Total for the Mozambique LNG Project

Energy contractor giant Worley Ltd announced that it has won two LNG contracts from Total. 

Worley said that it had been awarded two master service agreements (MSAs) by Total for the Mozambique LNG Project to provide in-and-out of country services, including engineering, consulting and specialist engineering for delivering onshore and offshore (subsea) facilities to support the development of the new LNG facility. 

Worley’s local Mozambique operation will execute the services with support from Worley’s global businesses including Advisian. Worley has supported the LNG development since gas was first discovered there in 2010. 

Worley CEO Andrew Wood said: “We are pleased to continue providing services to the LNG development and to support one of Africa’s largest projects. Through the MSAs, we will help Total and its partners in the Mozambique LNG Project meet the world’s changing energy needs.


ADNOC Project- Petropipe

ADNOC Awarded $1.65 bln Construction Contracts for Dalma gas project to Petrofac and its joint venture with Sapura Energy.

Abu Dhabi National Oil Company (ADNOC) awarded two contracts worth US$1.65 billion for the construction of offshore facilities for the Dalma gas development project to Petrofac and its joint venture with Sapura Energy.

The two engineering, procurement and construction (EPC) contracts are expected to be completed in 2022 and will enable the Dalma Gas Development project to produce around 340 million standard cubic feet per day (mmscfd) of natural gas.

The Dalma project, located about 190 kilometers northwest of Abu Dhabi city, is a key part of the Ghasha ultra-sour gas concession which is central to ADNOC’s strategic objective of enabling gas self-sufficiency for the United Arab Emirates (UAE).

Also, 70 percent of the total award value will flow into the UAE’s economy under ADNOC’s In-Country Value (ICV) program, reinforcing ADNOC’s commitment to maximizing value for the UAE as it delivers its 2030 strategy.

Yaser Saeed Almazrouei, executive director of ADNOC’s Upstream Directorate, said: “This award marks another important milestone in the development of the Ghasha concession which is an integral component of our strategy to achieve gas self-sufficiency for the UAE. It demonstrates how ADNOC is effectively collaborating with strategic partners that can deploy state-of-the-art technologies and world-class expertise to accelerate the development of Abu Dhabi’s substantial gas resources.

“Petrofac and Sapura Energy were selected to deliver this crucial project after an extremely competitive and rigorous tender process that ensures that 70 percent of the award value will flow into the UAE’s economy as In-Country Value, stimulating local economic growth and supporting the diversification of the nation’s economy in line with the leadership’s wise directives.”

Under the terms of one EPC contract valued at $591 million (AED 2.17 billion) and awarded to a joint venture (JV) between Petrofac and Sapura Energy, the JV will execute the engineering, procurement and construction of four offshore wellhead towers, pipelines and umbilicals in Hair Dalma, Satah, and Bu Haseer fields.

Under the terms of the other EPC contract, valued at $1.065 billion (AED 3.9 billion) and awarded to Petrofac, the contractor will carry out the engineering, procurement and construction of gas conditioning facilities for gas dehydration, compression and associated utilities in Arzanah Island located 80 kilometers from Abu Dhabi city. The gas will then be sent to Habshan Gas Processing Plant for further processing required to produce sales gas, condensate, and sulphur.

George Salibi, Petrofac’s Chief Operating Officer – Engineering & Construction, said: “We are fully committed to supporting continued and sustainable investment in Abu Dhabi’s oil and gas industry through our strategic focus on maximising local delivery and are pleased that our approach will generate substantial In-Country Value for the local economy. These latest contract awards build on our existing relationship with ADNOC Group companies and we look forward to delivering this mega project in a safe, successful and sustainable manner.”

Tan Sri Shahril Shamsuddin, President and Group CEO of Sapura Energy, said: “We are committed to delivering the Dalma Gas Development Project with our hallmark technical capabilities in offshore engineering and construction. Our priority is to support ADNOC in unlocking value from their asset.”

As part of the selection criteria for the awards, ADNOC carefully considered the extent to which bidders would maximize In-Country Value in the delivery of the project. This is a mechanism integrated into ADNOC’s tender evaluation process and is aimed at nurturing new local and international partnerships and business opportunities, catalyzing socio-economic growth and creating job opportunities for UAE nationals.

The successful bids by Petrofac and Sapura Energy prioritized UAE sources for materials, local suppliers and workforce, resulting in a total spend of over $1.15 billion (AED 4.2 billion) which will flow into the UAE’s economy.


Mozambique News Petropipe

TechnipFMC and JGC picked ALP to provide five vessels for Eni’s U$ 4.7 Billion Mozambique CORAL SOUTH FLNG project

Netherlands based specialist in offshore and marine transportation field ‘ALP Maritime Services’ has been selected by ‘TJJV’, to provide a spread of five vessels related to the FLNG Project.

ALP’s scope of work includes the towage operation from South Korea to Offshore Mozambique, by three of ALP’s 300ts Bollard Pull ALP FUTURE class vessels.

On arrival at the offshore site, the three ALP FUTURE class vessels with 24,400 BHP will be joined by two additional vessels from the company’s 19,000 BHP fleet.

Together, the vessels will keep the giant 432m long and 66 m wide CORAL SUL FLNG accurately in position, while a mooring vessel connects the pre-laid mooring chains to the FLNG.

On completion of the mooring operation, two of the five ALP-vessels will continue to support further operations on site.

FLNG was launched last month and will be the first floating production plant to be installed in Mozambique and on the African East Coast.

The FLNG is part of the Coral South project that will put in production 450 billion cubic meters of gas of the Coral reservoir, offshore Mozambique. The launch marks the timely progress of the project, which exceeds 60% completion and is in line with production start-up by 2022.

The hull is 432 meters long, 66 meters wide and weighs approximately 140,000 tons. Its eight-storey accommodation module, which will house up to 350 people, is also ready to be lifted and integrated with the hull system. Fabrication activities are also well underway for the 12 gas treatment and LNG modules, with all main equipment ready for integration and first deck stacking executed.

With a gas liquefaction capacity of 3.4 million tons per year (MTPA), the Coral Sul FLNG will be the first FLNG ever deployed in deep waters, at water depth of approximately 2,000 meters, and the first purpose-build FLNG in Africa. Drilling and completion activities for the six subsea wells that will feed the liquefaction unit are ongoing offshore Mozambique.

Eni News Petropipe

Eni Makes Oil Discovery Offshore Mexico

Eni revealed Monday that it has made a new oil discovery on the Saasken exploration prospect offshore Mexico.

According to preliminary estimates, the find, which was made in the Sureste Basin in Block 10, may contain between 200 and 300 million barrels of oil in place. Eni said an intensive data collection has been carried out on the Saasken-1 NFW well, which led to the discovery, and noted that the data acquired indicates a production capacity for the well of more than 10,000 barrels of oil per day.

Saasken-1 NFW is the sixth consecutive successful well drilled by Eni offshore Mexico in the Sureste Basin. It is located approximately 40 miles off the coast and was drilled by the Valaris 8505 Semisub, reaching a total depth of 12,565 feet.

The Block 10 joint venture, comprising Eni (which holds a 65 percent operated interest), Lukoil (which holds a 20 stake) and Capricorn (which holds the remaining 15 percent interest), will work to appraise the discovery and to exploit nearby synergies in order to start the studies for a commercial development, Eni revealed.

Eni has been present in Mexico since 2006. The company currently holds rights in eight exploration and production blocks, including six as operator, all of which are located in the Sureste Basin.

Last month, Eni announced a gas and condensate discovery in the Mahani exploration prospect onshore in the Area B Concession of Sharjah in the United Arab Emirates.

The discovery was made through the Mahani-1 well, which was drilled to a total measured depth of 14,597 feet and encountered a thick gas-bearing limestone reservoir in the Thamama of Lower Cretaceous age, according to Eni. The well was tested with flow rates up to 50 million cubic feet per day of lean gas and associated condensate, Eni revealed.


Fluor project-Petropipe

Fluor Awarded Engineering, Procurement and Construction Contract for World-Scale Adiponitrile Plant

Fluor Corporation announced that it was recently awarded a contract to provide engineering, procurement and construction for a new 400 kilo-ton-per-annum adiponitrile (ADN) plant in Shanghai, China. The new ADN plant is part of INVISTA’s ongoing work at the Shanghai Chemical Industry Park where the company recently completed a 215 kilo-ton-per-annum hexamethylenediamine (HMD) plant and a 150 kilo-ton-per-annum nylon 6,6 polymer plant. Fluor booked the undisclosed contract value in the fourth quarter of 2019.

“Fluor has been providing engineering, procurement and construction solutions to clients in China for more than 40 years,” said Mark Fields, group president of Fluor’s Energy & Chemicals business. “With this award, our proud legacy in China continues and we look forward to supporting INVISTA’s efforts to expeditiously increase production of ADN with their company’s most-advanced technology to meet growing demand within China and globally.”

When complete, INVISTA’s new ADN plant will integrate with its existing HMD and polymer facilities to directly supply domestic customers with the key building blocks to produce nylon 6,6 and other high-value products in China. These products are used in the production of a variety of goods, including those in the automotive, industrial, apparel and consumer electronics industries.

“We’re pleased to be working with Fluor to advance our ADN project in China,” said Bill Greenfield, president, INVISTA Intermediates. “We’re excited about this project and are committed to maintaining an accelerated timeline—with completion planned in 2022.”


mcdermott 2

McDermott Awarded Contract for EPFC Work

McDermott International, Inc. announced it has been awarded a contract by a major oil and gas operator for six crude oil storage tanks in Texas. The storage tanks will be part of an energy infrastructure project linking the Permian Basin in West Texas to the Texas Gulf Coast.

The scope of the project, which will be executed by CB&I Storage Solutions, includes the engineering, procurement, fabrication and construction (EPFC) of six floating roof crude oil tanks—four with a 500,000-barrel capacity each and two with a 250,000-barrel capacity each. Engineering, procurement and fabrication will be performed at the company’s Houston Fairbanks office and fabrication facility.  

“We have a strong track record of providing world-class storage solutions for major energy infrastructure projects all over the world,” said Cesar Canals, Senior Vice President of CB&I Storage Solutions. “This new award is a testament to our service offerings and capabilities, including our vast experience in engineering, fabricating and constructing complex, large-scale storage tanks.”

The award will be reflected in McDermott’s fourth quarter 2019 backlog.

The contract range for this award is between USD $1 million and $50 million.



$15B Texas LNG Project Wins DOE Authorization

The U.S. Department of Energy (DOE) has issued an order authorizing NextDecade Corp. to export liquefied natural gas (LNG) from its Rio Grande LNG facility in Brownsville, Texas, to non-free trade agreement (non-FTA) countries.

Gaining authorization to export LNG to countries that do not have free trade deals with the United States marks the latest regulatory milestone for NextDecade, which last November won a key approval from the Federal Energy Regulatory Commission (FERC). The FERC order allows NextDecade to site, construct and operate Rio Grande LNG and the associated Rio Bravo Pipeline.

“We greatly appreciate the Energy Department’s diligent review of our Rio Grande LNG project, as well as Secretary Brouillette’s continued support for the export of abundant and reliable U.S. energy to our partners and allies,” NextDecade Chairman and CEO Matt Schatzman commented. “This is another significant milestone for our Rio Grande LNG project, which will play a crucial role in linking natural gas from the Permian Basin and Eagle Ford Shale to the global LNG market, providing countries around the world access to cleaner energy.”

The Rio Grande LNG export facility would boast a liquefaction capacity of 27 million tons per annum (mtpa). It would receive up to 4.5 billion cubic feet (Bcf) per day of natural gas from the Agua Dulce area via the Rio Bravo Pipeline. With the ability to export to FTA and non-FTA countries, the Rio Grande complex is authorized by DOE to export 3.61 Bcf per day of natural gas as LNG.

“If built to capacity, the Rio Grande LNG project, including the connected Rio Bravo pipeline, is expected to create over 5,000 jobs during peak construction and represents infrastructure investment in excess of $15 billion,” the DOE noted in a written statement upon issuing the order authorizing export to non-FTA countries.

NextDecade’s Rio Grande LNG website states the company expects to make a final investment decision on the project this quarter. The facility could commence commercial operations in 2023.


Qatar gas-petropipe

Qatargas Signs Long Term SPA to Supply LNG to Kuwait

Qatargas announced the signing of a new, long term Liquefied Natural Gas (LNG) Sale and Purchase Agreement (SPA) with Shell to deliver 1 million tons per annum of LNG to the State of Kuwait, commencing this year.

Commenting on the signing of the SPA, His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs said, “We are pleased to announce this new long term agreement between Qatargas and Shell for the supply of LNG to the State of Kuwait, following the recent agreement signed between Qatar Petroleum and Kuwait Petroleum Corporation. These agreements demonstrate our commitment to the State of Kuwait, which is a very important LNG market and is part of our strive to be the LNG supplier of choice for our customers. I would like to take this opportunity to thank our valued partner, Shell, with whom we share a long history of fruitful collaboration and we look forward to continuing to work together to put LNG at the forefront of the world’s drive towards cleaner and more sustainable energy sources.”

His Excellency Minister Al-Kaabi added, “This new SPA also further underlines Qatargas’ position as the market leader in LNG and demonstrates the Company’s distinguished track-record of providing reliable LNG to the global market place and its continued ability to capture opportunities in a highly competitive environment.”

Commenting on the new SPA, Khalid bin Khalifa Al Thani, Chief Executive Officer, Qatargas, said, “Qatargas is delighted to conclude this new SPA with Shell. We believe this agreement provides a win-win solution for both companies and deepens the relationship with a valued partner and shareholder. Qatargas is committed to meeting the clean energy needs of customers who depend upon reliable, flexible LNG deliveries.”

The SPA provides for the supply of LNG from Qatar Liquefied Gas Company Limited (4) (“Qatargas 4″), a joint venture between Qatar Petroleum (70%) and Shell (30%).


Rovuma basin bids-Petropipe

Mozambique shows off Rovuma’s £42bn investment in a bid to attract North Sea suppliers

Natalia Camba, local content manager from the country’s National Petroleum Institute, was speaking at the opening of Subsea Expo about a trio of projects off the country’s coast which have attracted a combined $54bn of investment (£42bn).

Mozambique’s oil and gas sector remains in its “infancy”, with hopes to attract UK expertise to further develop the industry.

Ms Camba said there are “opportunities everywhere” for suppliers, with the Rovuma Basin so far being assessed to have 165 trillion cubic feet of gas in place.

The region has two projects already in development: the $8bn Coral field which is due to begin production in 2022 and the $23bn Golfinho/ Atum field.

Meanwhile the third, the $23.6bn Rovuma LNG project, is due for final approval in the first quarter of this year and will produce 15 million tonnes of liquefied natural gas per year.


Oman Water projects- Petropipe

Oman Awarded $213 million Water Transmission Line Project

Public Authority for Water (Diam), Oman has awarded the Project “construction of Water Transmission Line between Barka and Suhar”. The project has been awarded to the Joint Venture of Spanish infrastructure and technology Company, Elecnor and Oman based construction firm Target LLC.

The value of the project is Omani Rial (OMR) 82,000,000. (1 OMR = 2.60078 USD).

The project scope of work includes design,  procurement, and construction of the 144km long water transmission system on a lump-sum turnkey basis.

Construction of five reservoirs, ranging in capacities from 8,000 to 50,000 cubic meters along the length of the new system will be part of the contract. Five pumping stations will be constructed as well.

Once the project completed, it will be Oman’s biggest water transmission project. It will supply the potable water across the North and South Al Batinah governorates of the Sultanate of Oman.

Earlier, during 2017, Elecnor successfully completed Oman’s Qurayat Water Grid of Project value, $66.6 million.


Daewoo Project Petropipe

Daewoo awarded $500m LNG train contract in Mozambique

In the latest development confirming the size and scope of liquid natural gas (LNG) production in Mozambique’s Cabo Delgado province, Daewoo Engineering & Construction has received a $500-million contract to build two trains at the Afungi liquefaction site in Palma.

Although the contract is conditional, Daewoo E&C said it could exceed the initial investment of $500 million.

Once completed, the trains are expected to be capable of transporting 6.4 million tonnes of gas from Mozambique’s LNG fields in the Rovuma basin.

The contract was awarded following the finalisation of a joint venture named CSS, struck between Japanese engineering company, Chiyoda, Panamanian peer firm Mcdermott International, and Italian oilfield services company, Saipem.

LNG exports from Mozambique’s gas fields in the country’s far north-west are expected to come on line in 2024.

The coastal hamlet of Palma, where Total’s liquid natural gas project is situated, is also the site where South African émigré and entrepreneur Andre Hanekom had infrastructural interests serving his fishing company, Palma Marine.

Hanekom died after much cloak-and-dagger wrangling, particularly by Mozambican authorities. He was accused of aiding and abetting vicious rebel attacks that were said to have been launched from southern Tanzania into Mozambique.

However, these accusations of colluding with insurrectionist forces were never proven.

Inside sources believe his demise, leading to his death in a prison hospital, was devised by interests who wanted him dislodged from what has become the most lucrative resource exploration site in modern times. 


Daimond offshore drilling- petropipe

Diamond secures over $50 million backlog with new North Sea extension

Offshore drilling contractor Diamond Offshore has been awarded a contract extension for one of its semi-submersible rigs. During the fourth quarter of 2019, Diamond managed to narrow its loss on the back of higher revenues despite lower day rates when compared to 4Q 2018. 

During 2019, the company secured $620 million of backlog, including over $50 million secured in the fourth quarter related to a 12-month extension for the Ocean Patriot in the North Sea.

Namely, the 1982-built Ocean Patriot semi-submersible has been awarded a term extension with Apache in the UK North Sea. Under the extension, the rig’s contract is scheduled to end in early June 2021.

As of January 1, 2020, the company’s total contracted backlog was $1.6 billion, excluding approximately a $100 million margin commitment from one of the company’s customers.

Furthermore, Diamond said that its Ocean BlackHawk drillship will start operations offshore Senegal for Woodside in 2Q 2022 and end in 2Q 2023. The rig was previosuly expected to start Senegeal operations in 1Q 2022 and end in 1Q 2023. The contract with Woodside was agreed in April 2019.

The Ocean BlackHawk is currently working for Oxy in the U.S. Gulf of Mexico.

In a quarterly report on Monday, Diamond said that its revenues increased to $276.4 million in the fourth quarter of 2019 from $232.5 million in the corresponding period of 2018.

The company’s net loss narrowed to $74.8 million from a loss of $79.2 million in 4Q 2018.

Diamond’s average dayrate in 4Q 2019 dropped to $264,000 from $315,000 in the fourth quarter of 2018, but utilization increased t0 59% from 46% in 4Q 2018

Source: Offshore Energy Today

Petropipe Tristar

Tristar signs $24mn LNG shipping service contract with BP

Tristar Group, a global integrated energy logistics company, has signed a four-year contract with BP to provide liquefied natural gas (LNG) shipping services for a value of $24 million.

The deal with BP, one of Tristar’s long-standing partners, follows the recent addition to the Dubai-based company’s shipping fleet of its first LNG tanker, the Tristar Ruby.

The four-year deal will cover a variety of LNG shipping services comprising trading and delivery capacity worldwide.
The Tristar Ruby, formerly the British Ruby joins Tristar’s 30-strong fleet of ocean-going tankers. The vessel was built by Hyundai Heavy Industries in 2008 and has a cargo carriage capacity of 155,000 cubic metres. She will be technically managed by Wilhelmsen Ship Management and commercially operated by Tristar.

Eugene Mayne, Group CEO of Tristar, said: “We are pleased to be able to announce the value of our deal with BP, the first as we expand our presence into the LNG shipping market. This represents a strengthening of our relationship with BP, one of our core partners.”



ChemOne announces US$3.38bil petrochemicals hub in Johor

ChemOne Group, an oil and gas, petrochemicals and natural resources conglomerate, has announced the launch of the US$3.38bil Pengerang Energy Complex (PEC) in Johor.

Construction of the facility is scheduled to start in the second half of 2020.

According to a statement by ChemOne, it will be the master developer and majority shareholder of the PEC, which aims to be a world-class petrochemical hub that will add value to the downstream oil and gas value chain in Malaysia.

Upon completion, the project will be one of the world’s largest integrated condensate splitter and aromatics facilities.

“This is in line with the Government’s Transformation Programme to increase Malaysia’s petrochemical output and establish it as a regional oil storage and trading hub,” said ChemOne.

The PEC will have a processing capacity of 150,000 barrels per day of condensate plus side feed of naphtha, an aromatics output of 2.3 million metric tons per annum; energy products output of 3.9 million mtpa and hydrogen of 50,000 mtpa.

The condensate splitter will produce heavy aromatics naphtha, a primary feedstock for the aromatics plant.

Over four years of construction, the PEC will hire over 7,000 employees.

It will employ 250 staff once it commences operations, of which 80% will be Malaysian.

ChemOne said the project will employ various external contractions, service providers and SMEs.

“Overall, PEC is estimated to require the use of US$600-750 million worth of Malaysian-made content and catalyse additional investments of US$500-600 million for associated infrastructure, storage and other facilities,” it said.

It is expected to reach full capacity by 2024, and generate an annual export turnover of US$5bil for Malaysia.

Maire Tecnimont of Italy is ChemOne’s engineering, procurement, construction and commissioning (EPCC) partner for the project while UOP is the technology provider for PEC.

Saipem News Petropipe

Saipem: new offshore contracts worth over 500 million USD

The first EPCI contract has been awarded by Saudi Aramco in the Kingdom of Saudi Arabia as part of the Long-Term Agreement in force until 2021. The scope of the offshore work encompasses the design, engineering, procurement, construction and installation of a 36” carbon steel pipeline onto the existing network around the Ju’aymah area and brownfield services at the associated offshore platform.

Furthermore, in West Africa, Saipem has been assigned a contract by Eni Angola S.p.A. related to Cabaça and Agogo Early Phase 1 developments. The scope of work includes the EPCI of risers, production flowlines, jumpers and the installation of a Subsea Production System (SPS) in water depths ranging between 400 and 600 m to be carried out by Saipem vessels FDS and Saipem 3000.

In the same region, specifically in Equatorial Guinea, Saipem has also signed a contract with Noble Energy for the offshore installation of a 70 km gas pipeline connecting the Alen Platform to Punta Europa on the coast.

Additional minor contracts awarded are related to the decommissioning of existing infrastructures located in the Thistle Field of the North Sea to be executed by the Saipem 7000 and two other offshore transportation and installation contracts in the Middle East and the Gulf of Mexico.

Francesco Racheli, Saipem E&C Offshore Division COO, commented: “These new contract awards confirm the diversified nature of our core market segments and contribute to consolidating the historic relationship with our clients who know they can constantly rely on our support in order to pursue their safety, efficiency and reliability targets. A good start to the year for the E&C Offshore division and confirmation of the strategic positioning of the company in the Middle East and West Africa”.

Saipem is a leading company in engineering, drilling and construction of major projects in the energy and infrastructure sectors. It is “One-Company” organized in five business divisions (Offshore E&C, Onshore E&C, Offshore Drilling, Onshore Drilling and XSIGHT, dedicated to conceptual design). Saipem is a global solution provider with distinctive skills and competences and high-tech assets, which it uses to identify solutions aimed at satisfying customer requirements. Listed on the Milan Stock Exchange, it is present in over 70 countries worldwide and has 32 thousand employees of 120 different nationalities.


SNC LAVLIN project petropipe

SNC-Lavalin Gets Four Contracts from Korea Hydro and Nuclear Power

SNC-Lavalin announced its wholly-owned subsidiary Candu Energy has been awarded four contracts by Korea Hydro and Nuclear Power (KHNP) worth approximately $22 million in total.

The awards consist of multi-campaign field inspections, prolonged operation assessment and thermalhydraulic computer code updates.

The inspections will provide assurance to KHNP and the Korean nuclear regulator that the CANDU nuclear reactors at the Wolsong site continue to be safe to operate until the next planned inspection.

All the contracts are within SNCL Engineering Services, the cornerstone of our strategy moving forward to greater growth and support for our partner and customer.

SNC-Lavalin will inspect fuel channels and perform pressure tube sampling campaigns for Wolsong Units 2, 3 and 4, all to begin in 2020.

Engineering analysis and assessment will be completed on the fuel channels and fuel channel components (including calandria tubes) for Wolsong Units 2, 3, and 4.

The thermal-hydraulic computer codes (CATENA and NUCIRC) update will support KHNP in updating the safety analysis report for Wolsong units 2,3 and 4.




McDermott International has been awarded a large* contract by BHP to provide subsea umbilicals, risers and flowlines (SURF), transportation and installation (T&I), pre-commissioning of one jacket and topsides for the Ruby Project , offshore Trinidad and Tobago.

The Ruby Field resides in the Block 3(a) development area of Trinidad & Tobago, approximately 28 miles (45 kilometers) off the northeastern coast of Trinidad.

“We are pleased to support BHP in this new contract that continues to build on our successful track record in Trinidad,” said Mark Coscio , Senior Vice President, North, Central and South America. “The combination of heavy lift and pipelay capabilities of McDermott’s Derrick Lay Vessel (DLV) 2000 are best suited for this project as it can efficiently transport and install both the flowlines and platform.”

McDermott successfully executed a similar installation scope for the BP Trinidad & Tobago (BPTT) Angelin project last year. It also was awarded a contract in January of 2019 by BPTT for the engineering, procurement and construction (EPC) of the Cassia Compression Platform, located 35 miles (56 kilometers) southeast off the coast of Trinidad .

Engineering and Project Management of the project will be performed in Houston with engineering support from McDermott’s Mexico City office. McDermott’s DLV 2000 is scheduled to transport and install the flowlines and platform.

The project will begin immediately with completion projected in August 2020. The contract award will be reflected in McDermott’s fourth quarter 2019 backlog.

* McDermott defines a large contract as between USD $50 million and $250 million.


Hyundai E&C Petropipe

Hyundai E&C bags US$2.8 bln deal from Panama

SEOUL, Feb. 5 (Yonhap) — Hyundai Engineering & Construction Co. said Wednesday that its consortium has clinched a US$2.81 billion deal to build a metro line in Panama.

Under the deal with Metro de Panama S.A., the consortium will build a 25-kilometer-long metro line with 14 stations that will run from Panama City to the capital’s west. The construction is expected to take 54 months, according to the South Korean builder.

It is Hyundai E&C’s first deal in the Central American country.

Hyundai E&C said it has a 51-percent stake in the project while POSCO Engineering & Construction and Hyundai Engineering Co. have 29-percent and 20-percent stakes in the project, respectively.


Ethad rail projects, Petropipe

Etihad Rail Wins Package A Stage 2 contract to Power China, L&T

A joint venture of Indian contracting heavyweight Larsen & Toubro (L&T) and Power China International has been picked to work on Package A of Stage 2 of the UAE’s national railway network, Etihad Rail, which will be 1,200-kilometre-long upon completion.

Construction works under the package was launched by HH Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, chairman of the Abu Dhabi Crown Prince’s Court, and chairman of Etihad Rail.

The Indian-Chinese JV will construct freight facilities for the railway network which will be carried out at a total cost of $509.1m (AED1.87bn). Under the terms of the contract, the companies will be jointly responsible for the surveying, design, construction, equipment installation, testing, and pre-commissioning of each facility.

Package A will cover 139km, starting from Ghuweifat on the UAE border with Saudi Arabia to Ruwais, where the line connects with Stage 1 of the rail network. Construction activities under Package A will involve the use of 700,000m3 of ballast, 27,215,542 tonnes (t) of earthwork, and the installation of over 450,000 concrete sleepers provided by Etihad Rail’s own manufacturing plant that produces up to 45,000 railway sleepers each month.

With the contract award, Etihad Rail has completed the contract-awarding process of Stage 2 of the national network which will connect Fujairah and Khorfakkan on the emirates’ east coast to the UAE border with Saudi Arabia at Ghuweifat.

Commenting on the contract award, HH Sheikh Theyab bin Mohamed said that the launch of construction works under Package A witnessed Etihad Rail’s “transition from planning and design to actual implementation of the project on the ground”.

he contract was signed by chief executive officer of Etihad Rail, Shadi Malak; L&T’s Anupam Kumar and Power China International’s Hong Lee, in the presence of L&T’s managing director, S N Subrahmanyan and president of Power China International, Wu Wenhao, the Emirates News Agency reported.

Etihad Rail is constructing a series of freight facilities in Ruwais, Industrial City of Abu Dhabi (ICAD), Khalifa Port, Dubai Industrial City (DIC), Jebel Ali Port, Al Ghayl and Siji, Fujairah and Khorfakkan Ports


ADNOC news

UAE finds new natural gas field between Abu Dhabi, Dubai

The United Arab Emirates on Monday announced the discovery of a natural gas field containing 80 trillion standard cubic feet of gas between Abu Dhabi and Dubai.

Authorities said the new Jebel Ali field would help the Emirates become more energy independent, as the UAE now imports natural gas from Qatar for electricity.

Leaders of Abu Dhabi and Dubai witnessed the signing of an agreement between Abu Dhabi National Oil Company (ADNOC) and Dubai Supply Authority for the exploration and development of the gas resources.

Qatar has continued to supply its Gulf neighbour with gas via the Dolphin pipeline, despite being blockaded by the UAE and three other Arab nations over a years-long political dispute. 

In June 2017, Saudi Arabia, the UAE, Bahrain and Egypt imposed a land, air and sea blockade on Doha, accusing it of “supporting terrorism”.

Qatar has repeatedly and vehemently denied the allegation.

The agreement with Qatar “reinforces ADNOC’s commitment to ensuring a sustainable and economic gas supply and achieving gas self-sufficiency”, said the firm’s CEO, Sultan al-Jaber.

ADNOC and the Dubai Supply Authority will explore and develop the shallow gas field, which spans some 5,000 square kilometres (1,930 square miles), ADNOC said.

Monday’s statements gave no details on the timeframe for the new gas resources to come on stream or the estimated cost of the projects.

Shallow gas resources are reserves found trapped not too deep from the surface but they need advanced technology for production.

Qatar is the world’s largest liquefied natural gas (LNG) producer.

It produces and supplies the globe with 42 million metric tonnes of LNG annually. Most of this gas is pumped from the North Field, which is part of the world’s largest gas field that is shared between Qatar and Iran.

Technip FMC Project -Petropipe

TechnipFMC orders pipes for North Sea projects from Tata Steel

The scope of work includes the provision of High Frequency Induction (HFI) line pipe for carrier application and for both spool and pipe-in-pipe systems. The HFI line pipe will be manufactured in Tata Steel’s Hartlepool 20” pipe mill, and will be installed by TechnipFMC, Tata Steel said on Monday.

The three different projects span from the Northern North Sea to the Central North Sea.

Two of the three will see Tata Steel provide more than 16 kilometers of 10” carrier pipes, with three layer polypropylene coating for anti-corrosion and mechanical protection, including weld on pads to allow fitting of sacrificial bracelet anodes.

The third project requires several kilometers of 14” carrier pipes and 10” spool pipes.

Barry Rust, Marketing Manager, Energy & Sustainability, said: “The contract awards are testament to Tata Steel’s reputation and experience, both in the North Sea and with TechnipFMC.

“We look forward to working with TechnipFMC on the coming projects, further developing our valued relationship and providing the highest quality pipeline to our clients.”

Tata Steel has supplied more than one million tonnes of pipeline for oil and gas projects in the North Sea for more than 20 years – including in excess of 500,000 meters of reel installed pipe and more than £250 million invested in subcontracts for North Sea projects.




KBR has been awarded a major Project Management Consultancy (PMC) services contract by Abu Dhabi National Oil Company (ADNOC) for the Ghasha Concession portfolio of projects.

Under the terms of the contract, KBR will act as the main PMC contractor responsible for managing the successful Engineering, Procurement and Construction (EPC) contractors for Packages A & B of the Dalma Gas Development Project, Packages 1-5 of the Hail & Ghasha Development Project, Hail & Ghasha Islands Project as well as the Deep Gas Project. This work is expected to be performed over four years with an optional extension for two more years.

The Ghasha mega-project has the potential to meet about 20 percent of the UAE’s gas demand by around the second half of the decade. In addition, more than 120,000 barrels per day of oil and high-value condensates are expected to be produced when the project is on stream.

“We deeply appreciate the tremendous amount of trust that ADNOC has placed in KBR to project-manage such a significant share of this strategic Ghasha Concession program,” said Stuart Bradie, KBR President and CEO. “This award highlights ADNOC’s confidence in KBR’s reputation as the industry leader in the provision of value-added PMC services for similar mega gas-field development projects.”

“We look forward to continuing our long-term relationship with ADNOC and to demonstrating once again our world class ability to manage large-scale, complex projects such as this on time, within budget, but most of all with a strict safety culture,” Bradie continued. “We are confident that the Ghasha Concession Project will significantly boost In-Country Value. As always, KBR remains fully committed to act as one of ADNOC’s strategic partners to achieve the targeted In-Country Value objectives.”  



Al-Zour Refinery Consultancy Services tender issued by Kuwait

As per the notification, KIPIC intends to appoint a professional Contractor who will provide Consultancy for Project Engineering and Management Services for various projects at Al-Zour Refinery, Petrochemical Complex, LNG Import Facilities and other facilities belonging to Kuwait Integrated Petroleum Industries Company (KIPIC).

From time to time, the Contractor’s services may also be required to handle certain assignments of other Kuwait Petroleum Corporation (KPC) subsidiaries.

One of the major Services considered under the Contract is development of FEED and PMC Services for EPC for the Al-Zour Refinery Project (ZOR) Upgrade Project.

ZOR Upgrade Project is essentially a part of the expansion in local refining capacity and covers the requirement under ZOR Refinery.

The Project is currently under feasibility stage and in the event that the KIPIC decides to include the required services under the Scope of Services of the Contract, the feasibility report will be provided to the Contractor for the development of PMP.

The categories of Services to be provided by the Contractor shall includes the following:

  • Services Management
  • Engineering Services, including Sub-Contractor Services
  • Project and Construction Management Services
  • Technical Assistance Services outside Kuwait / outside Contractor’s office locations
  • Deputation of Contractor’s Personnel

The Contract Period will be mobilization Period (maximum of three months) plus seventy-two (72) Months starting from the Start Date of the Contract

KIPIC sets the tender fee as KWD 10,000 ($32,900). At present bid submission date is 03 May 2020.




Schlumberger announced an award to Subsea Integration Alliance of an exclusive contract by Equinor for the front-end engineering design (FEED) on its Bacalhau (formerly Carcará) project offshore Brazil. The contract scope brings together field development planning, project delivery and total life cycle solutions under an extensive technology and services portfolio. 

The contract is based on a two-step award. The FEED and pre-investment are starting now, with an option for the execution phase under a lump-sum turnkey setup that includes engineering, procurement, construction and installation for the entire subsea umbilicals, risers and flowlines (SURF) and subsea production systems (SPS) scope. Option for the contract is subject to Equinor’s planned investment decision for the Bacalhau project in late 2020. The field development will include 19 wells. Furthermore, Subsea Integration Alliance will also be responsible for life-of-field support, representing a fully integrated contract model across the entire field life cycle, from engineering and early engagement to aftermarket services.

We are extremely pleased that Subsea Integration Alliance has been awarded the FEED contract for the Bacalhau project,” said Henning Berg, CEO, Subsea Integration Alliance LLC. “The award comes on the back of a design competition where we have demonstrated our ability to maximize asset value through our integrated field development service. This involves dynamically connecting reservoir, production and economic models with well, subsea infrastructure and topside facilities in a single, collaborative environment using the Subsea Planner* collaborative field development solution. Through its tools and methodologies, Subsea Integration Alliance helps uncover the true value of an asset while seamlessly unifying planning and execution.”

“The award to Subsea Integration Alliance of the FEED contract for the Bacalhau project exemplifies our commitment to in-country value for Brazil, enabling regional efficiency and performance while increasing local content and alignment with Equinor’s strategic priorities,” said Don Sweet, president, OneSubsea.

The Bacalhau Field has located 185 km from the coast of the municipality of Ilhabela/SP, in the state of São Paulo, in a water depth of 2,050 m. Bacalhau is Brazil’s first integrated SPS and SURF project. The award is a significant endorsement of Subsea Integration Alliance’s strong position within the integrated market, our long-established local presence in Brazil and a commitment to support Equinor’s strategy of long-term growth in the region.



Samsung Engineering wins $1.85bn Aramco gas storage contract

Samsung Engineering signed a $1.85bn contract for the Aramco HUGRS (Hawiyah Unayzah Gas Reservoir Storage) project.

The project is located at Hawiyah, 260km east of Saudi Arabia’s capital Riyadh, and includes gas injection facility of 1,500 million standard cubic feet per day (MMSCFD); and a gas reprocessing facility of 2,000 MMSCFD. It is a project to introduce surplus sales gas into existing well during winter and reproduce gas to match the increase in demand in the summer, due to regional characteristics, it said.

Samsung Engineering will execute the whole engineering, procurement and construction (EPC) process and expects the Aramco HUGRS to be completed in 2023.

The scope of work includes gas injection facility with booster compressors and injection compressors, gas reproduction facility with reproduction compressors and slug catchers as well as utilities and offsite facilities, it said.

“Samsung Engineering is confident in the success of this project, based on its rich local experience in Saudi Arabia and its strong partnership with the client. Since its first entry into Saudi Arabia in 2003, Samsung Engineering has carried out more than 30 projects worth about $15 billion, half of which are Aramco projects,” it said.

Samsung Engineering’s President & CEO Sungan Choi stated: “Samsung Engineering is honoured to receive this contract and believes that our previous regional experience, engineering excellence and partnership with the client lead to this order. Continuing to provide safe and quality projects, Samsung Engineering will ensure that this project will leave a mark in Saudi Arabia and will lead to build on our position in the Middle East overall.”