Aramco awards contracts worth $10bn for vast Jafurah field development, as unconventional resources program reaches commercial stage

The Saudi Arabian Oil Company (“Aramco” or “the Company”) announced the start of development of the vast Jafurah unconventional gas field, the largest non-associated gas field in the Kingdom of Saudi Arabia. The Company has awarded subsurface and Engineering, Procurement and Construction (EPC) contracts worth $10 billion, with capital expenditure at Jafurah expected to reach $68 billion over the first 10 years of development.

It is a significant milestone both for the commercialization of unconventional resources in Saudi Arabia and the expansion of Aramco’s integrated gas portfolio, which will provide additional feedstock to support growth of the Company’s high-value chemicals business, complement its focus on low-carbon hydrogen production and help reduce emissions in the domestic power sector by providing a cleaner-burning alternative to liquid fuel. 

With an estimated 200 trillion standard cubic feet of gas in place, the Jafurah basin hosts the largest liquid-rich shale gas play in the Middle East. This shale play covers an area measuring 17,000 square kilometers and production of natural gas at Jafurah is expected to ramp up from 200 million standard cubic feet per day (scfd) in 2025 to reach a sustainable gas rate of two billion scfd of sales gas by 2030, with 418 million scfd of ethane and around 630,000 barrels per day of gas liquids and condensates, which are essential feedstock for the growing petrochemical industry. It will make Saudi Arabia one of the world’s largest natural gas producers.

HRH Prince Abdulaziz bin Salman Al Saud, Minister of Energy for the Kingdom of Saudi Arabia, said: “I would like to thank the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister and Minister of Defense, for their ongoing support of the Kingdom’s energy sector. The development of Jafurah will positively contribute to the Kingdom’s energy mix and it has been made possible thanks to close co-operation between more than 17 different agencies. The government is committed to the empowerment of national companies such as Aramco and no other energy company in the world is empowered to the same extent by the state, or by the Ministry of Energy which oversees the concession to develop the Kingdom’s hydrocarbon resources.”

The project is a key component of the Company’s long-term strategy and Aramco expects total overall lifecycle investment at Jafurah to exceed $100 billion. Through its unconventional gas program at the Jafurah, North Arabia and South Ghawar fields, the Company expects to create more than 200,000 direct and indirect jobs. 

Amin H. Nasser, Aramco President and CEO, said: “This is a pivotal moment in the commercialization of Saudi Arabia’s vast unconventional resources program. It is a breakthrough that few outside the Kingdom thought was possible, and which has positive implications for energy security, economic development and climate protection. Gas has a critical role to play in the energy transition and it will help significantly reduce emissions in the domestic energy sector, while providing a feedstock for low-carbon hydrogen and ammonia. It will also allow Aramco to tap into high-value feedstocks for use in the expanding Downstream petrochemicals industry and our aim is to significantly increase our gas production capacity over the next decade to meet demand growth.”

Aramco recently announced its ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned operated assets by 2050. Jafurah is expected to contribute to Saudi Arabia’s goal of producing half of its electricity from gas and half from renewables as the Kingdom pursues its own 2060 net-zero target. 

At peak production, Aramco’s unconventional gas program is expected to replace around half a million barrels of crude oil per day that would otherwise have been used for domestic consumption. The Jafurah gas development alone is expected to replace more than 300,000 barrels of crude oil per day at peak production. 

Nasir K. Al-Naimi, Aramco’s Upstream Senior Vice President, said: “The development of Jafurah is a game-changer for our Unconventional Resources program. It will be one of the most modern, cost-efficient shale development schemes in the industry and observe the highest environmental and safety standards. Jafurah will be a key enabler of our ambitions moving forward, and we continue to explore new fields, re-evaluate existing ones and evaluate potential joint investment opportunities in both natural gas and natural gas liquids as we pursue our goal of developing an integrated global gas portfolio to meet long-term energy and petrochemicals demand.” 

Aramco has awarded 16 subsurface and EPC contracts valued at $10bn for the Jafurah Gas Plant and gas compression facilities, as well as infrastructure and related surface facilities. These contracts were awarded to domestic and international service companies and involve several projects to enable development of subsurface and surface components of the Jafurah program. 

This will allow for the reliable delivery of gas and condensates through a dedicated surface network that includes a gas processing plant, a gas compression system and network of around 1,500 kilometers of main transfer pipelines, flow lines and gas gathering pipelines. The program also includes construction of the Jafurah Bulk Supply Point, transmission lines, power interconnection for Jafurah Gas Plant and new cogeneration plant facilities. 

In line with Aramco’s Digital Transformation Program, development of Jafurah will incorporate advanced Fourth Industrial Revolution (4IR) technologies, including Industrial Internet of Things (IIoT) and video analytics, to enhance construction, operation and safety. 

Aramco has awarded the majority of Jafurah subsurface contracts, in addition to engineering, material procurement and construction contracts, to contractors based in Saudi Arabia, in association with reputed international contractors and service providers. This is in line with the Company’s efforts to support development of the domestic energy sector and local supply chain partners. In addition, to drive domestic value creation and maximize long-term economic growth and diversification, the Jafurah development program will include an In-Kingdom Total Value Add (iktva) component. Aramco launched the iktva program in 2015 to facilitate development of a diverse, sustainable, and a globally competitive energy sector.

Source: Aramco

Wood awarded contract for Turkey’s largest gas reserve

Wood, the global consulting and engineering company, has been appointed by Turkish Petroleum (TP) as the integrated project management partner for the Sakarya Gas Field Development Project, located 150km off the coast of Turkey in the Black Sea.

As Turkey’s largest gas reserve, the Sakarya Gas Field has a confirmed capacity of 405 billion cubic meters (BCM) (14 tcf) of natural gas. On completion of the first phase in 2023, 10 million cubic meters (MCM) per day of gas will be delivered to the Turkish grid helping to build energy resilience across the country.

The new discovery could alleviate much of Turkey’s domestic gas import dependence, most of which comes from Russia, Azerbaijan and Iran via pipelines, along with liquefied natural gas from several countries including Nigeria, Algeria and the US.

A multidisciplinary Wood team will carry out the integrated project management and engineering verification for the first EPCI phase of the project which includes engineering, procurement and installation of the subsea production system, gas transport pipeline and umbilical, and onshore processing facility in Filyos.

Andy Hemingway, President of Energy, Innovation & Optimisation at Wood, said: “The Sakarya Gas Field will make a significant contribution to the development and growth of the Turkish energy industry and the wider economy. With decades of experience, Wood is uniquely positioned to deliver on this new contract, and we are delighted to be continuing our longstanding working relationship with TP on this milestone project.”

In the past year, Wood’s subsea team supported TP throughout the project’s pre-FEED and FEED phase, drawing on its wide range of expertise and experience in onshore and offshore development.

Source: Wood

SNC-Lavalin wins pre-project engineering services contract for potential CANDU new build in Romania

Candu Energy Inc., a member of the SNC-Lavalin Group , has won a 12-month, $8.4 million contract from Romanian firm, EnergoNuclear S.A., to provide engineering services during the preparatory stage of a precursor project to complete CANDU Units 3 & 4 in Romania.  

‘’The potential to develop two new build nuclear reactors demonstrates that the Romanian government, along with several other of our public sector clients around the world, recognize that safe, reliable, affordable, low-carbon nuclear energy is how we will combat and ultimately, win the battle against climate change,’’ said Ian L. Edwards, President and CEO of SNC-Lavalin. 

This contract follows the signing of an intergovernmental agreement (IGA) between Romania and the United States in 2020, as well as a Memorandum of Understanding (MoU) in August 2021 between Romania and Canada to strengthen and further develop the cooperation in nuclear energy civil projects and builds on the 55-year relationship between the two countries in developing nuclear projects.

“We are pleased to expand our relationship with Romania, Societatea Nationala Nuclearelectrica (SNN), EnergoNuclear S.A. and our US partners for this potential new build project. Romania is familiar with CANDU technology since its first two CANDU units came online in 1996 and 2007 and have been providing reliable power ever since,” said Sandy Taylor, President, Nuclear. “Expanding their nuclear footprint would help Romania meet its net zero carbon commitments.”

Source: SNC-Lavalin

Fluor Wins Three Construction Project Industry Awards

Fluor Corporation announced that three of its Advanced Technologies & Life Sciences projects were recognized with 2021 awards of excellence by the Construction Users Roundtable (CURT) at its annual awards gala in Cape Coral, Florida.

“We are honored to receive these prestigious awards,” said Juan Hernández, president of Fluor’s Advanced Technologies & Life Sciences business. “These projects exemplify the value Fluor offers clients with a knowledge-based solutions model focused on safety, teamwork, integrity and excellence.”

Fluor was recognized with a Construction Industry Project Excellence (CIPE) award, a Construction Industry Safety Excellence (CISE) award and a Construction Industry Workforce Development (CIWD) award.

Project Excellence Award for Hyperscale Data Center Project
Fluor was awarded the CIPE award for its Hyperscale Data Center project in Finland. CIPE awards recognize project teams for outstanding delivery of capital projects. The award judging committee evaluated the ability to add value, eliminate waste and increase overall excellence in five areas: safety, cost performance, schedule performance, quality and innovation. Fluor won in the international $500-million to $1-billion projects category.

Safety Excellence Award for ASR Domino Sugar Refinery Rebuild
Fluor was awarded the CISE award for its rebuilding of two sugar silos at the 111-year-old ASR Domino Sugar refinery located in Chalmette, Louisiana, after they were almost destroyed by fire in August 2020. Fluor deployed the day after the fire and provided immediate site cleanup, extensive repairs and restoration of the fire-damaged silos and associated machine rooms. The rebuild included assembly of engineered circular scaffolding systems to address logistics around each 80’ high silo located on the top of a 60’ tall building roof and the removal of 1.8 million pounds of sugar that was stored in each silo prior to the fire. Fluor won in the Heavy Construction Contractors 200,000 to 500,000 work hours per-year category.

Workforce Training Award for N.C. Pharmaceutical Facility
Fluor’s third award, the CIWD award, was for workforce training related to a pharmaceutical facility in North Carolina. Training was undertaken to address safety, quality, technical skills, soft skills and leadership. Training was critical to project execution as nearly 14,000 workers on the project delivered approximately 11 million on-site work hours.

Source: Fluor

Woodfibre LNG awards EPFC contract to McDermott

Woodfibre LNG has signed an Engineering, Procurement, Fabrication, and Construction (EPFC) contract with McDermott International. The EPFC contract is an important step in advancing detailed engineering and construction scheduling work in advance of Woodfibre LNG issuing a notice to proceed.

Responsibly produced natural gas is a necessary part of making a successful global transition from heavy-emitting fuels to renewables. By harnessing the low-carbon gas resources of British Columbia’s Montney region to replace coal-fired energy sources in Asia, Woodfibre LNG will reduce global emissions by 3.5 million tonnes CO2e per annum, equivalent to removing 5 percent of B.C.’s annual emissions from the atmosphere each year. McDermott and Woodfibre’s collaboration on front-end engineering and facility design, relative to typical LNG facilities, is expected to result in a reduction of approximately 86 percent of the carbon dioxide emissions per tonne of LNG produced.

Woodfibre LNG will be the cleanest liquefied natural gas export facility on earth, achieved through the adoption of a low-emission philosophy across every element of engineering and design. The facility will use hydroelectricity for the main liquefaction process, and includes state of the art technology that enables liquefaction machinery to restart without flaring, a recycling system for “boil-off” gas, and additional transformers, switchgear and transmission lines. Altogether, this results in the most groundbreaking technical achievement in the world of LNG, and sets a new standard for efficient plant design. This next-generation LNG production is in high demand. Woodfibre LNG has two offtake agreements signed with BP, meaning over 70 percent of Woodfibre’s annual throughput has already been sold.

McDermott’s industry-leading NetZero Modular LNG strategy has been fully utilized during the development of this advanced onshore gas processing and liquefaction facility with floating storage near Squamish, British Columbia, Canada. The strategy provides multiple pathways through design, execution and construction to reduce operational and project emissions.

“Our contract with McDermott is a positive step forward for this substantial piece of clean energy infrastructure,” said Christine Kennedy, president of Woodfibre LNG. “Together, we will be building the lowest-emission, most sustainable and innovative LNG export facility in the world. A particular point of pride for us is that the Squamish Nation serves as a full environmental regulator for this project. Serving as a unique example of economic Reconciliation, this is the first arrangement of its type for an LNG facility.”  

McDermott will manage onshore construction, leveraging Canadian-based contractors and commitments included in Woodfibre LNG’s Impact Benefit Agreements with the Sḵwx̱wú7mesh Úxwumixw (Squamish Nation). It is estimated that 650 people will be working on the Woodfibre LNG site at peak construction. The EPFC contract commits McDermott to Woodfibre LNG’s hiring priority for qualified Squamish Nation members and local workers first, followed by British Columbians and then Canadians. The joint priority is to create a safe, inclusive and respectful workplace that brings benefits to the project’s Indigenous partners and community.

“This is another example of how we are applying our unique integrated capabilities to solve challenges and create successes for our customers,” said Samik Mukherjee, Executive Vice President and Chief Operating Officer of McDermott. “This award is a tremendous opportunity to further demonstrate how our LNG and modularization expertise enables a new generation of sustainable energy solutions.”

In addition to the EPFC work, McDermott will also be responsible for commissioning and start-up services. Pre-installation work for the project is planned for early 2022 and will gradually ramp up to September 2023, when major construction is targeted to begin. Major works will continue through to substantial completion, expected in Q3 2027.

Source: McDermott

Weatherford Awarded Over $1 Billion In Downhole Completion And Liner Hanger Contracts By Abu Dhabi National Oil Company

Weatherford International plc (“Weatherford” or the “Company”) announced that it was awarded two five-year contracts with Abu Dhabi National Oil Company (“ADNOC”) with a combined value of more than USD 1 billion for downhole completions equipment and liner hanger systems.

Girish Saligram, President and Chief Executive Officer, commented, “These drilling-related awards demonstrate our differentiated ability and commitment to support ADNOC in achieving its 2030 goal of expanding production capacity to 5mmbpd. Our field-proven portfolio and capabilities in well construction will enable ADNOC to minimize costs, reduce risks, and optimize production. The Downhole Completions contract is amongst the world’s largest in this category and we are proud to participate in it. Our UAE manufacturing facility in Abu Dhabi will produce the majority of products delivered in both contracts and further demonstrate our commitment to the UAE In-Country Value (ICV) program while also delivering global competitiveness.”

Source: Weatherford

Saipem has been awarded a new offshore contract for the Búzios 7 project in Brazil, worth approximately 940 million USD

Saipem has been awarded by Petrobras a new SURF EPCI contract for the installation of a rigid riser-based subsea system for the Búzios 7 project, to serve the pre-salt field located about 200 km offshore the state of Rio de Janeiro, in water depths of around 2,000 meters. 

The project awarded to Saipem includes the Engineering, Procurement, Construction and Installation (EPCI) of the Steel Lazy Wave Risers (SLWR) and associated flowlines interconnecting 15 subsea wells to the FPSO together with the related service lines and control umbilicals. Furthermore, Saipem will also be responsible for the provision and installation of the FPSO anchors and for the hook up of the FPSO at field.

Saipem will use its FDS, its state-of-the-art field development ship, for the installation of the SLWRs.

In July 2020 Saipem had already been awarded a contract by Petrobras for the Buzios 5 project for the Engineering, Procurement, Construction and Installation (EPCI) of the Steel Lazy Wave Risers (SLWR) and associated flowlines between all wells and the FPSO.  

Francesco Caio, CEO and General Manager of Saipem commented: “This project is a further important evidence of a new investment cycle and of Saipem’s competitiveness in projects with a high technological content. The contract also confirms the trust placed in Saipem by major clients such as Petrobras for the realization of projects central to their strategies, as well as it confirms the solid position of the company in geographic areas with significant development prospects”.

Source: Saipem

ADNOC Awards Baker Hughes Two Major Contracts Through its Local Partners

Baker Hughes has been awarded two contracts from Abu Dhabi National Oil Company (ADNOC) this week for equipment and services across multiple upstream fields and projects in the United Arab Emirates (UAE). The contracts were announced at this year’s Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).

As part of ADNOC’s largest ever wellheads award globally, Baker Hughes’ Surface Pressure Control (SPC) product line in the Oilfield Equipment business has been awarded a major contract for the manufacture, supply, storage, and servicing of surface wellhead and tree systems with local partner Al Ghaith Oilfield Supplies & Services Company. The contract covers ADNOC’s onshore and offshore fields in the UAE for the next 10 years, as well as a long-term service contract to cover the repair, maintenance, and spares for the project’s equipment.

In addition, Baker Hughes’ Oilfield Services (OFS) business has been awarded a contract to manufacture, supply, store, install and service liner hanger systems over five years with local partner Uni-Arab Engineering & Oilfield Service. The contract will leverage Baker Hughes’ in-country workshop and further supports the UAE’s emphasis on local manufacturing through in-country value strategy and localization.

“These are strategic deals for Baker Hughes within the UAE, strengthening our footprint and significantly increasing our presence in the region,” said Ayman Khattab, vice president of Surface Pressure Control for Oilfield Equipment at Baker Hughes. “Our localized presence and strong record of execution in the UAE makes us a partner of choice for ADNOC. We are supporting the UAE and ADNOC’s growing energy needs and committed to transforming the industry by providing reliable technology and delivering operational excellence.”

The first delivery of the surface wellheads and trees contract work will be in early 2022, and the first delivery of the liner hanger systems contract is planned for the second half of 2022.

The awards are an integral part of ADNOC’s 2030 strategy and support its supply chain and ecosystem development, local capabilities, and job creation for local talent. Additionally, the awards will help enable ADNOC’s drilling needs as it expands its production capacity. Baker Hughes’ business model supports ADNOC’s in-country value program and vendor managed inventory (VMI) service, maintaining an agreed inventory of required equipment in Abu Dhabi and allowing Baker Hughes to be more efficient and reduce delivery time.

Source: Baker Hughes

Worley has been awarded a contract to provide engineering and construction management services to Chevron Australia Pty Ltd (Chevron) for its Jansz-lo Compression (J-IC) project

The project will use subsea compression technology to maintain long-term gas supply from the Jansz-lo field, located around 200 km offshore the north-western coast of Australia. The field will supply three existing LNG trains and domestic gas plant on Barrow Island.

The J-IC project will involve the construction and installation of a 27,000‑tonne normally unattended floating field control station, around 6,500 tonnes of subsea compression infrastructure, and a 135 km submarine power cable linked to Barrow Island.

We completed the pre-FEED and FEED for the project in 2020. We’ll now provide detailed engineering, design and construction management services for the power transmission and communication components scope.

We’ll lead the project from our Perth office, with support from our global integrated delivery team. The project is expected to take approximately five years to complete.

“Being part of a project that supports the energy transition across the Asia Pacific region aligns with our purpose of delivering a more sustainable world. We’re pleased to continue our global relationship with Chevron and look forward to supporting the next stage of its strategically important J-IC project,” said Gillian Cagney, Regional Managing Director, Australia & New Zealand.

Source: Worley

ADNOC Awards $1.46 Billion EPC Contracts for the Dalma Gas Development Project

The Abu Dhabi National Oil Company (ADNOC) announced , the award of two engineering, procurement and construction (EPC) contracts totaling $1.46 billion (AED5.36 billion) for the Dalma Gas Development Project. The Dalma field is part of the Ghasha Concession which is the world’s largest offshore sour gas development and an important enabler of gas self-sufficiency for the United Arab Emirates (UAE).

The two EPC contracts, awarded to National Petroleum Construction Company (NPCC) and a joint venture (JV) between Técnicas Reunidas and Target Engineering, include the construction of gas conditioning facilities, wellhead topsides, pipelines and umbilicals. Seventy percent of the award value will flow back into the UAE’s economy under ADNOC’s successful In-Country Value (ICV) program, reinforcing ADNOC’s commitment to ensuring more economic value remains in the country from the contracts it awards.

Package A of the two Dalma EPC contracts was awarded to NPCC and is valued at $514 million (AED1.89 billion). It covers the EPC of four offshore wellhead towers, pipelines and umbilicals in Hair Dalma, Satah, and Bu Haseer fields.
Package B, awarded to the Técnicas Reunidas and Target Engineering JV, is valued at $950 million (AED3.49 billion) and covers the EPC of gas conditioning facilities for gas dehydration, compression and associated utilities on Arzanah Island located 80 kilometers from Abu Dhabi.

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “The award of the Dalma EPC contracts as well as ongoing artificial island construction and development drilling underscore the progress of the Ghasha mega development. As we continue to execute this strategic project, we  are ensuring it delivers substantial In-Country Value to drive economic growth and support the objectives of the UAE’s Principles of the 50, set out by the country’s wise Leadership.

“ADNOC and its partners remain guided by our strategic production capacity objectives and sustainability ambitions. Together, we are responsibly progressing the Ghasha mega development to maximise value as well as support the gas self sufficiency goal of the UAE.”

Both engineering contracts are expected to be completed in 2025 and will enable the Dalma field to produce around 340 million standard cubic feet per day (mmscfd) of natural gas. The offshore Dalma field is located 190 kilometers northwest of the Emirate of Abu Dhabi. ADNOC has advanced orders for long lead items and completed seven development wells at Dalma, enabling smooth and expedited project delivery.

ADNOC continues to work with its concession partners to responsibly progress the Ghasha mega project, aiming to further optimize costs and timing, as well as accelerate the integration of carbon capture, while remaining focused on production objectives and requirements. As part of this, ADNOC and its partners have today awarded a contract to Technip Energies to update the Front-End Engineering and Design (FEED) for the concession.

In the Ghasha concession area, three artificial islands have already been completed, as enabling works continue. Production from the concession is expected to start around 2025, ramping up to produce more than 1.5 billion scfd before the end of the decade. 

The Ghasha mega development includes one of the UAE’s largest ever marine environmental baseline surveys, underpinning ADNOC’s commitment to sustainability. Its use of artificial islands provides significant environmental benefits as well as cost savings by eliminating the need to dredge over 100 locations for wells while also providing additional habitats for marine life.

Source: ADNOC

ADNOC L&S Partners with AD Ports Group to Develop a New Port at Ruwais

ADNOC Logistics & Services (ADNOC L&S), and AD Ports Group have signed an agreement to develop a new port and logistics facility at TA’ZIZ, the chemicals production and industrial hub currently under development at Ruwais, United Arab Emirates (UAE). 

Under the terms of the agreement, ADNOC L&S and AD Ports Group will develop a liquids terminal and logistics facility to support tenants of the TA’ZIZ Industrial Chemicals Zone. The facility will be a critical part of the supply chain for feedstocks and will store and load final products for export. The partners will select an international operator to enter into a new joint venture and contribute to the development of the new port. 

Speaking at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “Our strategic partnership with AD Ports Group builds on the complementary strengths of two UAE industrial champions in accelerating the competitiveness of TA’ZIZ and our growing petrochemicals sector in Ruwais. The new port will consolidate the UAE’s competitiveness as an international supply chain hub for energy and industry and further positions TA’ZIZ as the preferred partner for investing in the growth of the UAE’s advanced manufacturing base.”
TA’ZIZ is strategically aligned with the UAE’s ‘Principles of the 50’, with initial chemicals production expected in 2025. 

Captain Mohamed Juma Al Shamsi, Group CEO, AD Ports Group, said: “As an enabler of trade and industry, we remain committed to creating highly attractive business opportunities for companies within Abu Dhabi and the wider UAE. Our collaboration with ADNOC L&S to develop a port and liquid terminal facility to support TA’ZIZ is aligned with our vision of driving the growth of international trade in the Emirate. By bringing together our respective expertise to build vital trade infrastructure, we are boosting industrial investment flows to the UAE and helping accelerate Abu Dhabi’s economic growth and industrialization.”

Three large-scale berths and associated infrastructure in addition to loading and unloading facilities will make up the foundation of the new port. The two liquid berths measure 640 meters in length with the dry bulk berth measuring 320 meters, which combined equals 10 football pitches. A tank farm with ten product tanks and one feedstock storage tank will be included, with specialized utilities, control rooms, and product vapor handling systems safeguarding the products in storage.

TA’ZIZ comprises three zones; an Industrial Chemicals Zone that will host chemicals production with seven world-scale projects in the design phase, a Light Industrial Zone that will convert the outputs of the Chemicals Zone into consumable products, and an Industrial Services Zone that will house companies who provide services required by the other zones. 

Since launching in November 2020, contracts have been awarded for the initial Front-End Engineering and Design (Pre-FEED) for seven world-scale chemicals projects. Partnership announcements have been made for Blue Ammonia, Ethylene Dichloride (EDC), Chlor-alkali (CA) and Polyvinyl chloride (PVC). TAQA and ADNOC have also signed an agreement to develop a utilities facility for chemicals projects. 

ADNOC L&S is the largest integrated shipping and maritime logistics company in the Middle East, with a fleet of over 240 owned and chartered vessels and integrated solutions models covering the entire oil and gas supply in the UAE. The company operates the largest and only purpose-built oil and gas logistics base in the UAE, providing a wide range of diversified services to the offshore industry. ADNOC L&S’ recent 25-year exclusive agreement to service all Petroleum Ports in Abu Dhabi solidifies its role as the oil and gas supply chain champion in the UAE.

Source: ADNOC

TechnipFMC Awarded Large Subsea Contract for Additional Stabroek Block project

TechnipFMC has been awarded a large contract by Exxon Mobil Corporation affiliate, Esso Exploration and Production Guyana Limited, to supply the subsea production system for the Yellowtail development.

Subject to government approvals and final project sanction, TechnipFMC will provide project management, engineering, manufacturing and testing capabilities to deliver the overall subsea production system. The scope of the project includes 51 enhanced vertical deepwater trees (EVDT) and associated tooling, as well as 12 manifolds and associated controls and tie-in equipment.

Jonathan Landes, President, Subsea at TechnipFMC, commented: “We are very excited to continue our relationship with ExxonMobil through this award, which is our fourth within the Stabroek block. We are proud of our dedicated Guyanese employees and are committed to the continued development and expansion of local capabilities.”

TechnipFMC currently employs more than 60 Guyanese, and expects to continue to hire and train additional local staff in support of this award.

For TechnipFMC, a “large” contract is between $500 million and $1 billion; the full contract award will not be included in inbound orders until the project receives final investment decision and government approvals.

Source: TechnipFMC

JGC Gulf International Awarded the EPC contract for the Dew Point Control Unit Project from Aramco

JGC HOLDINGS CORPORATION announced that JGC GULF INTERNATIONAL CO. LTD., its 100% owned affiliate, which has operated full engineering, procurement, construction (EPC) and project management business in the Kingdom of Saudi Arabia since 2008, has been awarded the EPC contract for the Dew Point Control Unit Project from Aramco.

The project is the first to be awarded under the Brownfield Long Term Agreement (LTA), which covers various EPC works for upgrade and modification of existing oil and gas facilities. The project scope will provide new gas Dew Point Control Unit at Abqaiq NGL Plants, and expected to be completed by 2024.

JGC group has successfully completed and delivered number of mega-sized projects in Saudi Arabia. Moreover, since its establishment, JGC Gulf International Co. Ltd. has contributed to Saudi Arabia’s localization efforts by transferring its technical expertise through training and project opportunities provided for its young Saudi engineers. The JGC Group is committed and will continue its contribution, by drawing on its accumulated EPC expertise and experience, acquired through projects completed in Saudi Arabia and all over the world.

Source: JGC

Saipem has been awarded two new offshore contracts for transportation and installation activities (T&I) for a total amount of over 600 million USD

The first contract was awarded by Chevron Australia Pty Ltd for the Jansz-lo Compression Project, the gas field located around 200 kilometres offshore the north-western coast of Australia, at water depths of approximately 1,400 meters. Jansz-lo is part of the Chevron-operated Gorgon Project, a grouping of different fields and one of the world’s largest natural gas developments.

Offshore operations are planned to start in 2024 and they will be conducted by the Constellation vessel. 

The second contract regards the Sakarya Gas Field Development project, the first deepwater natural gas field discovered in Turkey in the Black Sea, about 175 km offshore the coast of Eregli. The contract entails the transportation and installation of pipelines to 2,200-meter water depth. The offshore operations are to begin in spring 2022 and will be conducted mainly by the Castorone vessel. 

Francesco Caio, CEO and General Manager of Saipem, commented: “The award of these two important contracts highlights our solid expertise in subsea installation and our world-class assets as well as being a tangible sign of recovery of the offshore market. These new contracts in the gas sector, a fundamental element of the energy transition, provide solid indications of the improvement in demand and testify to Saipem’s capability of offering solutions in line with its clients’ needs”.

Saipem is an advanced technological and engineering platform for the design, construction and operation of safe and sustainable complex infrastructure and plants. Saipem has always been oriented towards technological innovation and is currently committed, alongside its clients, on the frontline of energy transition with increasingly digitalised tools, technologies and processes that were devised from the outset with environmental sustainability in mind. It is listed on the Milan stock exchange and operates in over 60 countries around the world with 32 thousand employees from 130 different nationalities.

Source: Saipem

ACCIONA will operate four wastewater treatment plants in Egypt over the next two years for 7 million euros

ACCIONA will operate and maintain four wastewater plants in different sites in Egypt over the next two years following an agreement signed on 10 October between the company and the Egyptian authorities. The contract is for approximately 7 million euros.

ACCIONA will undertake the rehabilitation of these facilities, located at Abnoub-El Fath (80.000 m3/d), Sodfa-El Ghanayem (30.000 m3/d), El Ayat (30.000 m3/d) and Abu Simbel (6.000 m3/d), all built in 2007. It will also carry out their supply and start-up, as well as the operation and maintenance of the four plants, under the terms of an agreement signed with the National Organization for Potable Water and Sanitary Drainage (NOPWASD).

The treated wastewater will exceed 140,000 m3/day when the four plants are at full capacity. It will be used mainly for agricultural irrigation, increasing the level of water reuse in the country. With these projects, ACCIONA advances in the objectives of its Sustainability Master Plan, in this case, in the efficient use of water from the Nile.


ACCIONA awarded road extension project in Australia

A consortium led by ACCIONA, together with local companies, has been awarded the contract to extend Stephenson Avenue, one of the main arteries in the City of Stirling; around 10 km north of Perth’s central business district (the capital of Western Australia) along the Mitchell Freeway.

The AU$191 million (€121 million) project, called the “Stephenson Avenue Extension”, will provide a new connection from the freeway to other major arteries, the industrial area of Osborne Park and the Westfield Innaloo Shopping Centre, as well as creating 800 jobs.

It is part of a wider plan to transform the Stirling City Centre, providing a new strategic link and opening up large tracts of currently vacant land suitable for development. It also complements recently completed projects in the area designed to improve connectivity such as the Mitchell Freeway southbound widening works from Cedric Street to Vincent Street and Northbound Mitchell Freeway widening from Hutton Street to Cedric Street.


Aker Solutions Formally Signs FEED Contract for Wisting FPSO

Aker Solutions formally signed the FEED contract with Equinor, valued at around NOK 350 million.

Aker Solutions announced receiving a letter of intent from Equinor for front-end engineering and design (FEED) of a floating production, storage and offloading (FPSO) vessel for the Wisting field.

The contract will be booked as order intake in the fourth quarter of 2021 in the Renewables and Field Development segment.

Source: Aker Solutions

Petrofac secures new EPCC contract with PETRONAS

Petrofac has been awarded with a new contract worth around MYR399 million (approx US$96 million) by PETRONAS Carigali Sdn. Bhd., a subsidiary of PETRONAS, the Malaysian National Oil Company. The Engineering, Procurement, Construction, and Commissioning (EPCC) scope of work will encompass the delivery of the new Bintulu Additional Gas Sales Facilities 2 (BAGSF-2) plant located onshore at Tanjung Kidurong, Bintulu, in the Malaysian state of Sarawak.

The greenfield development includes process and utilities unit, effluent treatment unit, metering skid, fire water tank, pumps, flare system and main substation building. In addition to the 390 MMSCFD capacity new facility, the project will also involve brownfield modifications and tie-in within the existing PETRONAS Plant, also located in Bintulu.

Petrofac Chief Operating Officer Nick Shorten said:

“We have been working closely with PETRONAS since 2004, using our broad services capability and expertise to support the development of Malaysia’s energy infrastructure. The contract will be delivered by Petrofac Group’s local subsidiary, Petrofac Engineering Services (Malaysia) Sdn Bhd, with engineering support from Petrofac-RNZ and local supply chain and subcontractors, further underpinning our commitment to local delivery.”

Source: Petrofac

Worley has been awarded a services contract by Oxy Low Carbon Ventures (OLCV), a subsidiary of Occidental, for a facility in British Columbia

It’s being designed to produce renewable fuels by capturing carbon dioxide from the atmosphere using Carbon Engineering’s Direct Air Capture and AIR TO FUELS™ technologies.

The facility is expected to produce up to 100 million liters of ultra-low carbon fuel annually. It’s being developed by OLCV and Squamish Huron Clean Energy Corporation and is expected to be the first commercial-scale project of its kind.

When built, the low-carbon fuels are expected to provide a new option for hard-to-decarbonize industries such as marine, air, rail and truck transportation. This will give transporters the option to reduce their fleets’ carbon dioxide footprint without modifying their vehicles.

We’re providing early front-end engineering and design (pre-FEED) services for the facility and will act as project integrator for the technology. Construction is scheduled to begin in 2023 with the facility anticipated to be operational by 2026. Upon completion of the pre-FEED, the project is expected to move into the FEED and then the engineering, procurement, fabrication, and construction phase.

We’re also developing the FEED for a DAC facility, DAC-1, being developed by OLCV’s 1PointFive in the US Permian Basin. It’s expected to capture 1 million metric tons of atmospheric carbon dioxide for permanent storage when completed.

“We’re delighted to have been awarded this contract by OLCV and look forward to building on the relationship we started on the DAC-1 project earlier this year. The significance of the direct air capture technology being extended to renewables fully aligns with Worley’s purpose of delivering a more sustainable world,” said Chris Ashton, Chief Executive Officer of Worley.

“We’re proud to partner with Carbon Engineering and Huron on the AIR TO FUELS™ project and pleased that Worley will join the team to conduct the pre-FEED,” said Richard Jackson, President, Operations, US Onshore Resources and Carbon Management, of Occidental. “We selected Worley based on our experience working with them and believe their method of driving innovation within their company will advance the development of the AIR TO FUELS™ facility.”

Source: Worley

L&T Construction Awarded Contracts for its Various Businesses in India

The construction arm of L&T has secured orders for its businesses in India.

Metallurgical & Material Handling: The Metallurgical & Material Handling (MMH) business has been awarded an Engineering, Procurement & Construction (EPC) order for 12 MTPA Dry Circuit Systems on a turnkey basis for a Screening Plant (SP-III) from NMDC Limited at their Kirandul Complex, Chhattisgarh.

The scope of work includes Tertiary Crushing, 2-stage Screening, Stacking, Reclaiming and Dispatch of Iron ore along with the associated Civil, Structural, E&I and other auxiliary facilities.

This plant will be one of the largest Iron Ore Handling plants and aims to ensure uninterrupted Iron Ore supply for different customers of NMDC.

The MMH business has also secured new orders for its Products Business in the mining sector and add on orders from its existing customers.

These orders signify MMH’s leadership position and its continued efforts to build customer confidence in this sector.

Buildings & Factories: The Buildings & Factories (B&F) business has secured a prestigious order from DRDO to construct their Flight Control System Facility at ADE, Bengaluru.

The project involves construction of a 1.2 Lakh sq. ft facility consisting of Ground + 6 Floors in an extremely fast track timeline of 4 months.

The project will demonstrate L&T’s technological expertise in Modular Offsite Construction with Composite Truss Beam technology that will be used for the Structure. 90% of the building components will be manufactured offsite except for the foundations. The structure will have Composite Structural Steel and the building enveloped with a façade. The interiors comprise 100 mm false flooring and modular wall partitions with false ceilings. The toilets will also be constructed offsite as Fully Finished Toilet PODS (Portable on Demand Storage).

Source: L&T

Fluor-led JV Awarded Contract to Install Grinding Mill at Grasberg Copper and Gold Mining District in Indonesia

Fluor Corporation announced that its joint venture with Petrosea – Fluor Petrosea Joint Organization (FPJO) – has been selected by PT Freeport Indonesia to install a new grinding mill at its Grasberg copper and gold mining district in Papua, Indonesia. Fluor booked its undisclosed portion of the contract in the third quarter of 2021.

FPJO will construct a third semi-autogenous grinding (SAG) mill adjacent to the existing milling facilities as the mining district continues to ramp up underground production primarily from the Deep Mill Level Zone and Grasberg Block Cave mines following completion of mining in the open pit in 2019. With the additional SAG mill, the milling capacity will be approximately 240,000 tonnes per day.

“Fluor has built several expansions at Grasberg as well as other major projects in Indonesia since the 1980s,” said Tony Morgan, president of Fluor’s Mining & Metals business. “We value the trust we have earned over the decades with the Freeport team and are proud to expand our global footprint in the industry as a solutions provider for the global copper demand.”

The Grasberg project is located in the remote highlands of the Sudirman Mountain Range on the western half of the island of New Guinea.

Fluor’s Perth, Australia office will lead the project with support from Fluor’s offices in Jakarta and Vancouver.

Construction is scheduled to begin later this year and be completed in 2023.

Source: Fluor

QatarEnergy places LNG ship orders with Korean shipyards for its expansion projects

Another significant step in its historic LNG shipbuilding program

QatarEnergy places LNG ship orders with Korean shipyards for its expansion projects

QatarEnergy placed the first batch of LNG shipbuilding orders with Korean shipyards consisting of four vessels from Daewoo Shipbuilding & Marine Engineering (DSME) and two vessels from Samsung Heavy Industries (SHI), as part of QatarEnergy’s historic shipbuilding program to meet its future LNG carrier requirements.

The orders came in the form of QatarEnergy’s declaration of its ship construction options with the two Korean shipyards under its Reservation of Shipyard Capacity agreements signed in May 2020.

Commenting on this new shipbuilding order, His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, said: “We are pleased to take this further step with DSME and SHI, which have built 23 Q-Flex and 14 Q-Max LNG vessels for Qatar as part of our previous LNG expansion project.”

His Excellency Minister Al-Kaabi added: “These orders, and those that will follow in the near future, constitute a significant part of our program to expand Qatar’s LNG fleet to meet the requirements of our LNG expansion projects, our existing fleet replacement, as well as our LNG trading arm.”

In concluding his remarks, His Excellency the Minister said: “I would like to take this opportunity to thank the management and working teams from DSME, SHI, QatarEnergy and Qatargas, whose dedicated efforts were instrumental in the realization of this milestone.”

The North Field expansion projects will increase Qatar’s LNG production capacity from 77 million tons per annum to 126 million tons per annum by 2027. QatarEnergy’s LNG carrier fleet program is the largest of its kind in the LNG industry and is designed to meet the shipping requirements of QatarEnergy’s LNG expansion projects, as well as replacing part of Qatar’s existing LNG fleet.

Source: QatarEnergy

TechnipFMC and Saipem Announce SURF Commercial Agreement to Unlock New Opportunities

TechnipFMC and Saipem announced that the two companies have entered into a global commercial agreement that will allow them to identify projects worldwide that could be jointly executed for the benefit of clients.

The commercial agreement will pursue specific Subsea Umbilicals, Risers and Flowlines (SURF) projects where the combination of the companies’ complementary world-class assets, technologies, products and competencies improves project economics and de-risks the overall project development for the benefit of all stakeholders.

The collaboration will have access to a broad range of SURF products and installation methods, providing greater operational flexibility and optimized execution strategies under EPCI (Engineering, Procurement, Construction and Installation) and iEPCI™ (integrated Engineering, Procurement, Construction and Installation) project execution models.

Jonathan Landes, President, Subsea, at TechnipFMC commented: “We are very pleased to partner with Saipem for the creation of this alliance. Working together with Saipem, we will be well-positioned to efficiently utilize complementary assets and capabilities to create differentiated technical solutions that further optimize project execution. Importantly, the strengthened offering will also expand the potential market for iEPCI™ opportunities when combined with TechnipFMC’s innovative Subsea 2.0™ production systems.”

Stefano Porcari, Chief Operating Officer of the E&C Offshore Division, at Saipem commented: “The SURF commercial agreement with TechnipFMC represents an important milestone to offer a more competitive and reliable value proposition to our clients. The agreement will provide a pool of complementary enabling vessels and facilities and a consolidated Reel laying and J-laying technology base. Together we will be able to provide a full service for those challenging developments requiring an ample range of technologies and capabilities. We are very excited with this commercial agreement and with the opportunities that will be released to the benefit of our stakeholders.”

Source: TechnipFMC