Aramco closes gas pipeline deal with global investor consortium

Saudi Arabian Oil Company (“Aramco”) and an international investor consortium, led by affiliates of BlackRock and Hassana, announced the successful closing of the lease and leaseback deal previously announced on December 6, 2021. The consortium has acquired 49% stake in Aramco Gas Pipelines Company, a subsidiary of Aramco, for $15.5 billion. The consortium comprises leading institutional investors including, amongst others, Keppel Infrastructure Trust, Silk Road Fund, and China Merchants Capital.

This long-term investment by the consortium represents further progress in Aramco’s portfolio optimization program and highlights the strong investment opportunities presented by Aramco’s significant infrastructure assets. It also underlines Aramco’s strong long-term outlook and the appeal of the Kingdom of Saudi Arabia to leading institutional investors.

As part of the transaction, first announced in December 2021, Aramco Gas Pipelines Company and Aramco entered into a 20-year lease and leaseback arrangement in connection with Aramco’s gas pipeline network. Under this arrangement, Aramco Gas Pipelines Company will receive a tariff payable by Aramco for the specified gas products that flow through the network, backed by minimum commitments on throughput. Aramco retains a 51% majority stake in Aramco Gas Pipeline Company, and also retains full ownership and operational control of the gas pipeline network. The transaction does not impose any restrictions on Aramco’s production volumes.

The announcement follows the closing of a $12.4 billion infrastructure transaction in connection with Aramco’s stabilized crude oil pipeline network in June 2021.

Concurrent with closing of this transaction, Aramco has also signed a memorandum of understanding (MoU) with BlackRock, to explore joint opportunities in future energy transition projects related to low carbon energy infrastructure. The MoU reinforces the relationship with BlackRock, enhancing opportunities for possible future collaborations.

Aramco President & CEO, Amin H. Nasser, said: “This agreement is our second landmark infrastructure transaction in less than a year and another major step forward in our long-term value creation strategy. The participation of the consortium led by BlackRock and Hassana underlines the appeal of Aramco’s portfolio to leading global investors as Saudi Arabia’s economic transformation builds momentum, requiring a robust energy infrastructure and network that are vital to meet the needs of an expanding industrial sector.

At the same time as Aramco raises gas production and seeks new opportunities in low-carbon energy sources over the next decade, the importance of our energy infrastructure in relation to global energy security and reliability is expected to grow in significance.”

Abdulaziz M. Al Gudaimi, Aramco Senior Vice President of Corporate Development, said: “We remain focused on maximizing the potential of our assets and assessing new investment opportunities to further enhance our robust balance sheet. The gas infrastructure transaction with BlackRock and Hassana is a testament of the relationship with the global investors and emphasizes gas as a key pillar to grow in domestic and international markets.”

Larry Fink, Chairman and CEO of BlackRock, said: “We are pleased to close this landmark transaction and deepen our partnership with Aramco by signing a Memorandum of Understanding to develop low carbon energy infrastructure together. Getting to a net zero world will not happen overnight. It requires us to shift the energy mix in incremental steps to achieve a green energy future. Bold, forward-thinking incumbents like Aramco have the technical expertise and capital to play a crucial role in this transformation, and we look forward to our future collaboration.”

Saad A. AlFadly, CEO of Hassana Investment Company, added: “We are delighted to achieve closing of this landmark transaction which highlights our focus to invest in critical infrastructures in the Kingdom of Saudi Arabia. We look forward to working with our partners at Aramco and BlackRock to make this a successful long-term investment.”

Source: Aramco

Namibia: TotalEnergies makes a significant discovery in offshore Block 2913B

TotalEnergies has made a significant discovery of light oil with associated gas on the Venus prospect, located in block 2913B in the Orange Basin, offshore southern Namibia. 

The Venus 1-X well encountered approximately 84 meters of net oil pay in a good quality Lower Cretaceous reservoir. 

“This discovery offshore Namibia and the very promising initial results prove the potential of this play in the Orange Basin, on which TotalEnergies owns an important position both in Namibia and South Africa” said Kevin McLachlan, Senior Vice President Exploration at TotalEnergies. “A comprehensive coring and logging program has been completed. This will enable the preparation of appraisal operations designed to assess the commerciality of this discovery.” 

Block 2913B covers approximately 8,215 km² in deep offshore Namibia. TotalEnergies is the operator with a 40% working interest, alongside QatarEnergy (30%), Impact Oil and Gas (20%) and NAMCOR (10%).

Source: TotalEnergies

ADNOC L&S Signs Agreement for Second Long-term Charter of a Floating Storage Unit with AG&P as it Delivers on its Ambitious Growth Plans

ADNOC Logistics & Services (ADNOC L&S) and Atlantic Gulf & Pacific International Holdings (AG&P), a leading downstream LNG platform and infrastructure development company have signed a charter agreement to utilize ADNOC L&S’s LNG Carrier Ish as a Floating Storage Facility (FSU). 

Under the terms of the agreement, starting Q3 2022, AG&P will use the carrier for the first LNG Import Terminal in the Philippines at Ilijan in Batangas Bay (PHLNG). The agreement, which is valid for 11 years with the option of extension by 4 years, strengthens an existing relationship between the two companies and builds on a previous agreement between the two companies to provide another FSU in India, signed in 2021. It continues ADNOC L&S’ ongoing drive to diversify its customer base and enhance revenue streams. 

The vessel is part of a fleet of eight LNG vessels operated by ADNOC L&S and is currently under contract to ADNOC LNG, a subsidiary of ADNOC. Upon the conclusion of its contract with ADNOC LNG, the Ish will be deployed to AG&P as a floating storage facility, extending the vessel’s life by at least 11 years and up to 15 years, and bolstering ADNOC L&S’ recently established FSU revenue stream, while providing PHLNG’s customers with resiliency of supply. 

Capt. Abdulkareem Al Masabi, CEO of ADNOC L&S said: “This agreement builds on our existing partnership with AG&P and demonstrates our continued focus on maximizing value from our assets. By providing AG&P with another flexible storage solution for their new LNG terminal, we are able to extend the operational life of this vessel, unlocking incremental value and new opportunities for growth.  Furthermore, as the provider of world-class shipping, offshore logistics and onshore services, we are growing our global footprint, delivering cutting-edge technology and services to our partners. Our project with AG&P in the Philippines will contribute to the economic growth of the country by leveraging the potential of clean LNG for power generation.”

The supply, operations and maintenance of the FSU will be undertaken by ADNOC L&S while the conversion of the LNG Carrier (LNGC) to FSU will be completed by AG&P subsidiary, GAS Entec. PHLNG will be the 5th FSU-based LNG import terminal in the world, after those in India, Malta, Malaysia, and Bahrain. The integrated PHLNG offshore/onshore import terminal will have an initial capacity of 5 million tonnes per annum (MTPA). 

Mr. Joseph Sigelman, Chairman & CEO, AG&P Group, said: “PHLNG will store LNG and dispatch natural gas, providing a critical, clean transition fuel for the Philippines. We are privileged to have ADNOC Logistics and Services, a foremost global leader in LNG logistics, as our partner to transition the Philippines to cleaner fuel through AG&P’s PHLNG import terminal.”

The Ish is part of ADNOC L&S’ diverse fleet of more than 200 vessels, which, when combined with its 1.5 million square meter logistics base in Abu Dhabi and its integrated logistics capabilities, make the company the region’s leading marine logistics provider. 

The Ish was built in 1995 in Japan and has a capacity of 137,315.444 cubic meters of LNG. At the time of its inauguration was one of the largest LNG vessels in the world.

Source: ADNOC

Técnicas Reunidas continues to progress in the construction of the ExxonMobil’s project in Singapore

Despite the challenges and impacts of the COVID-19 pandemic, Técnicas Reunidas is making progress in the execution of ExxonMobil’s Singapore integrated manufacturing complex expansion project on Jurong Island (Singapore).

Técnicas Reunidas continues the construction phase of the project. This year, TR will increase construction activities at the Singapore site, for which it plans to mobilize over 250 personnel.

Construction activities will also increase at the modularization yards in Thailand, where the modules will be manufactured, assembled, and subsequently delivered to Singapore. Técnicas Reunidas will mobilize about 200 specialists to the yards.

The project was awarded to the Spanish company in the first quarter of 2019 through an EPC (engineering, procurement and construction) contract for approximately US$1.5 billion. The scope of work includes hydrotreating conversion units, sulfur recovery and auxiliary systems.

This contract is a continuation of the extended basic engineering (FEED) contract for the same facility, which was completed by about 150 Técnicas Reunidas’ engineers.

Over 500 engineers have been working since 2019 on the development of the detailed engineering and procurement of the project, thus confirming the company’s headquarters in Madrid as a center of excellence in engineering.

Project for YPF for US$ 264 million

On the other hand, Técnicas Reunidas has signed a US$ 264 million contract with YPF S.A. to upgrade of its Luján de Cuyo plant (Mendoza, Argentina).

The project will enable the facility to meet new fuel specifications and achieve significant environmental improvements.

YPF awarded Técnicas Reunidas in 2019 a contract for the cost estimation of the plant upgrade project under an “open book” scheme (FEED-OBE).

The Spanish company will now continue with a new contract for the engineering, procurement and construction management of the new hydrotreatment and hydrogen production units as well as various auxiliary systems.

The construction of modules and the electromechanical assembly of the new units will be carried out by AESA (a construction company of the YPF group). Técnicas Reunidas will team up with the customer for the supervision of these works.

The estimated project execution period is 40 months.

Source: Técnicas Reunidas

ADNOC Awards $1.94 Billion Framework Agreements to Enable Drilling Growth

Abu Dhabi National Oil Company (ADNOC) announced framework agreement awards valued at $1.94  billion (AED 7.1  billion) to enable drilling growth. The awards build on ADNOC’s recent record investments in drilling-related equipment and services and support its strategy to boost crude oil production capacity to 5 million barrels per day (mmbpd) by 2030 and drive gas self-sufficiency for the United Arab Emirates (UAE). 

The framework agreements for wireline logging and perforation services are the largest of such awards in the oil and gas industry and were awarded to ADNOC Drilling Company P.J.S.C (ADNOC Drilling), Schlumberger Middle East S.A (Schlumberger), Haliburton Worldwide Limited Abu Dhabi (Halliburton) and Weatherford Bin Hamoodah Company LLC (Weatherford), following a competitive tender process. Wireline logging involves continuously measuring the properties of rock formations to guide drilling operations while perforation creates tunnels in the wellbore to allow fluid to flow in from the reservoir.

His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said: “The framework agreements announced today are a continuation of ADNOC’s unprecedented investment in services to enable the expansion of drilling activity required to responsibly unlock the UAE’s leading low-cost and low-carbon intensity oil as well as the nation’s gas resources. Not only do these awards support our 2030 strategy, they are expected to deliver over 80% of In-Country Value to the UAE and align with the UAE’s ‘Principles of the 50’ economic blueprint for sustainable growth.”

The framework agreement awards cover ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years. Furthermore, skilled employment opportunities will be created for UAE Nationals by the successful companies who will also work to identify local manufacturing opportunities. 

ADNOC Drilling’s share of the awards is the largest and it covers services including cased hole and open hole as well as perforation. This reflects the company’s expanded service profile as a result of its transformation into a fully Integrated Drilling Services (IDS) company following the award to Baker Hughes of a 5% share in the company in 2018.

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “The award to ADNOC Drilling demonstrates its robust offering and capabilities as well as its integral role in ADNOC’s future drilling activities. The awards to all four companies will deliver sustantial in-country value,  and create new job opportunities for UAE Nationals, in line with the Leadership’s wise directives.” 

The framework agreement awards will support ADNOC’s requirement to drill thousands of new wells to expand its production capacity and remain a leading low-cost, low-carbon oil producer. The awards will also enable hundreds of millions of dollars in cost savings. 

As an integral part of its 2030 strategy, ADNOC is optimizing its procurement strategy to reflect market dynamics, focusing on long-term contracts with an optimized number of suppliers that provide stable and reliable delivery at highly competitive rates. In November 2021, ADNOC announced investments of almost $6 billion (AED22 billion) in the form of procurement awards to top-tier contractors for Wellheads and related components, Downhole Completion Equipment (DCE) and related services, and Liner Hangers and Cementing Accessories.

Source: ADNOC

McDermott Awarded Its Largest Ever Renewable Energy Project by TenneT

McDermott International has been awarded its largest ever renewable energy contract from TenneT for the BorWin6 980MW High-Voltage, Direct Current (HVDC) project. Through a consortium with Global Energy Interconnection Research Institute Co., Ltd. and C-EPRI Electric Power Engineering Co., Ltd. (GEIRI / C-EPRI), McDermott will provide engineering, procurement, construction, installation and commissioning (EPCIC) services.  

The project is for the design, manufacture, installation and commissioning of an HVDC offshore converter platform, located 118 miles (190 kilometers) offshore Germany on the Platform North Sea Cluster 7 in a water depth up to 131 feet (40 meters). Electricity generated from offshore wind farms will be converted into direct current and transported to an onshore converter station located 28 miles (45 kilometers) onshore near Büttel, Germany.

“This major EPCIC award elevates our growing energy transition portfolio and signifies our expansion into the thriving offshore wind market, further strengthening our global ambitions in the renewables sector,” said Samik Mukherjee, McDermott’s Executive Vice President and Chief Operating Officer.

McDermott will lead the consortium with GEIRI / C-EPRI through an integrated execution model utilizing McDermott’s extensive global engineering centers and strategically located fabrication yards. The consortium will leverage McDermott’s extensive project management, engineering, global procurement and fabrication expertise and GEIRI / C-EPRI’s proven HVDC experience and world-class network solutions.

“Our integrated EPCIC delivery model, combined with nearly a century of experience executing some of the most challenging offshore projects in the world, make us ideally suited to support TenneT on this important offshore grid connection project,” said Tareq Kawash, McDermott’s Senior Vice President, Europe, Middle East, Africa. “Additionally, our HVDC Center of Excellence in The Hague is strategically positioned to lead our execution delivery in the European market.”

On the HVDC offshore platform, McDermott’s scope includes the engineering, procurement, fabrication, transport and installation and commissioning of the topside module and jacket. On the onshore converter station, McDermott’s scope includes the engineering, procurement, construction and commissioning.

GEIRI / C-EPRI’s scope includes the engineering, manufacture, supply, installation supervision and commissioning of the HVDC system for the onshore and offshore converter stations.

The engineering and project management will be executed from McDermott’s HVDC center of excellence in The Hague with support from its Chennai and Gurgaon offices. The fabrication of the topside is planned to be executed by the Qingdao McDermott Wuchuan (QMW) Fabrication Facility in Qingdao, China, and the jacket from McDermott’s Batam fabrication yard in Indonesia.

Source: McDermott

Doosan Heavy Signs KRW 1 trillion Contract for Casting & Forging Facility Construction in Saudi Arabia

Doosan Heavy Industries & Construction announced that it had signed an EPC contract valued to be KRW 1 trillion with Tuwaiq Casting & Forging, its joint venture company in Saudi Arabia, on building a casting & forging facility. Tuwaiq Casting & Forging is a company that was established last month through the joint venture between the Saudi Arabian Industrial Investments Company (Dussur), Saudi Aramco’s wholly-owned subsidiary Saudi Aramco Development Company and Doosan.

The new facility is to be built at the King Salman International Maritime Industries Complex, which is located near Jubail in the Eastern Province of Saudi Arabia. As the facility will have an area size of 400,000m² and the capacity to produce 60 thousand tons of castings and forgings per year, once built it will be Saudi Arabia’s largest casting & forging facility. The construction of the facility is to commence this year and is slated to be completed by the first quarter of 2025.

The main products to be produced at the facility are the castings and forgings that go into the pumps and valves of petrochemical plants and those used on equipment for shipbuilding and offshore plants. The long term plan is to further expand the scope to include castings and forgings for wind farms and power plants.

“It is a significant feat for us to have won this contract to build Saudi Arabia’s largest casting & forging facility using our casting & forging expertise and EPC capabilities, which we steadily accumulated over the past 40 years,” said Inwon Park, CEO of Doosan Heavy’s Plant EPC Business Group. He added, “We also plan to actively support the small and medium-sized local companies by partnering with them to jointly target the global market for construction of such manufacturing facilities and supply of key equipment.”

According to the global research & consulting firm Frost & Sullivan, the casting & forging market in the Gulf Cooperation Council countries, centering around the UAE, is forecast to grow to the size of approximately KRW 2 trillion (USD 1.8 billion) per year by 2028.

Source: DOOSAN

Technip Energies Awarded a Significant EPCC Contract by PETRONAS Chemicals Fertiliser Kedah for a New Melamine Plant with Minimized CO2 Footprint

Technip Energies as leader of a consortium with Dialog E&C Sdn. Bhd., has been awarded a significant(1) Engineering, Procurement, Construction and Commissioning (EPCC) contract by PETRONAS Chemicals Fertiliser Kedah Sdn. Bhd., (PC FK), a wholly-owned subsidiary of PETRONAS Chemicals Group Berhad (PCG) for a new melamine plant to be integrated into their existing complex in Gurun, Kedah, Malaysia.

This EPCC contract follows the successful completion of the Front-End Engineering Design (FEED) by Technip Energies. The project includes a 60,000 ton per annum greenfield melamine plant, utilizing CASALE Low Energy Melamine (LEM™) technology, and associated interconnections with the existing urea plant where the CO2 generated in the melamine production process will be recycled. This serves to minimize the CO2 footprint of this new asset.

Technip Energies is responsible for overall project management, engineering, procurement and commissioning, whereas Dialog E&C is in charge of construction and pre-commissioning. This is a very strong combination leveraging decades of experience of delivering projects in Malaysia.

Marco Villa, COO of Technip Energies, stated: “We are honored to be entrusted by PCG to build their first melamine plant, participating in the diversification of their product portfolio. Technip Energies is committed to deliver a high performing, energy efficient and low carbon emission asset making this project another key milestone in our longstanding and successful history in Malaysia and with PETRONAS.”

(1) A “significant” award for Technip Energies is a contract award representing between €50 million and €250 million of revenue.

Source: Technip Energies

L&T Construction Awarded contracts for its Buildings and Factories Business

The Construction arm of Larsen & Toubro has secured an order from the Bangladesh Hi-Tech Park Authority to construct Hi-Tech IT Parks at 8 locations (2 packages at 4 locations each) across Bangladesh. This project is being funded by the Indian EXIM Bank and is the first IT & Office Space order that L&T has secured in Bangladesh.

The major scope of work for the project comprises Procurement and Construction of 7 storied structural steel buildings at all 8 locations with BUA of 1.2 million sq.ft. including Civil, Finishes, Façade, and Electromechanical works with LEED Gold rating. The scope also includes HVAC, Lift, Electrical, Fire Fighting System, Public Health Engineering, Networking & Security System, Building Management System, Site Development, Road, Boundary wall, Landscaping, Arboriculture etc.

The project locations are in Rangpur, Natore, Jamalpur, Mymensingh, Dhaka, Khulna, Gopalganj and Barishal districts of Bangladesh. The project is scheduled to be completed within stringent timelines.

Source: L&T

Técnicas Reunidas wins a US$335 million contract for the development of two combined cycle plants in Mexico

The public company Comisión Federal de Electricidad (CFE) of Mexico, the largest company in the electricity sector in Latin America, has awarded the development of two natural gas combined cycle plants (CCGT) in the state of Yucatán to a consortium formed by the Spanish companies Técnicas Reunidas and TSK, which will carry out the design and execution of the plants on a 50/50 basis, and the Japanese company Mitsubishi Power, which will provide the turbine technology.

These are the Valladolid and Mérida combined cycle plants, which will have an approximate capacity of 1,000 MW and 500 MW, respectively, and will use state-of-the-art gas turbines capable of reaching maximum efficiency levels.

The contract amount for Técnicas Reunidas is 335 million dollars.

The incorporation of more efficient electricity generation technology, based on natural gas, will allow Mexico to continue reducing the contribution of the most polluting electricity generation plants, which use heavy liquids as fuels, thus helping to decarbonize its electricity system.

In addition, the two plants will provide a significant boost to the socioeconomic development of the Yucatán peninsula and significantly strengthen the coverage of its energy needs, as the area has high and growing levels of electricity demand, especially in the summer months. In particular, its commissioning will be very relevant to supply energy to the Tren Maya, a mega railway project started in 2018 by the Government of Mexico, which will have a length of more than 1,500 kilometers and whose route extends through Yucatan and four other states in the country.

The specific actions to be undertaken by the Spanish consortium include mainly the works related to engineering, supply (excluding the gas and steam turbines, which, as well as the heat recovery boilers, will be supplied by Mitsubishi Power), construction and commissioning of the two plants, whose development will last for an estimated period of 33 months in the case of the Valladolid plant and 35 months in the case of the Mérida plant.

In particular, the engineering work, which will be assumed in its entirety by Técnicas Reunidas, will require the contribution of 500,000 total hours during 12 months by a team of more than 500 highly qualified engineers.

Source: Técnicas Reunidas

Petrofac secures new scopes with Cairn Oil & Gas, Vedanta, including first major O&M contract in India

Petrofac, a leading provider of services to the global energy industry, has been awarded two new contracts with Cairn Oil & Gas, Vedanta Limited, India’s largest private oil and gas exploration company. With a combined value of approximately US$100 million, the wins include Petrofac’s first significant Operations and Maintenance (O&M) contract in-country; evidencing its geographical growth strategy in action.

Selected by Cairn to provide integrated O&M services in support of its upstream oil and gas facilities, Petrofac will supply expertise at the Ravva Oil and Gas field in the Krishna Godavari Basin, in coastal Andhra Pradesh. The duration of the contract is four-years, with an option to extend by 12 months. The scope of work includes full O&M of the facility, including offshore platforms, subsea pipelines and the onshore processing terminal.

Cairn has also selected Petrofac to undertake a lump-sum engineering, procurement, and construction (EPC) project to support the provision of Well Hook‐up and Surface facilities for the Raageshwari Deep Gas (RDG) Field, in Barmer, Rajasthan. Executed on a fast-track basis, the main scope of work includes bringing online additional wells, augmentation and modifications to handling and treatment facilities including electrical, instrument control, and safety and protection systems.

This follows a previous lump-sum EPC contract, valued at approximately US$233 million, which Cairn awarded to Petrofac in April 2018 for its RDG Field Development Project. This was safely and successfully completed, with the plant’s 72-hour Performance Guarantee Test Run in June 2021.

Nick Shorten, Chief Operating Officer for Petrofac’s Asset Solutions business said:

“The award of these contracts both deepens our footprint in India and supports the geographical growth of our Asset Solutions business, as it leverages more than 25 years of operations and maintenance expertise in India for the first time. We look forward to supporting Cairn through the safe and high-quality execution of these latest scopes which, in line with our local delivery model, will be supported by our world class engineering centres in Chennai and Mumbai.”

Speaking on the contracts, Prachur Sah, Deputy Chief Executive Officer, Cairn Oil & Gas, Vedanta Ltd. said:

“Petrofac has earned a global reputation for its engineering excellence in execution of projects for the upstream oil and gas sector. Cairn’s association with Petrofac furthers our long-term vision of optimisation of asset operations and achieving profitability. We are confident that this partnership will further strengthen our execution and operational excellence, enabling us to actualise our vision of adding 500 kboepd and doubling domestic crude production capacities.”

Source: Petrofac

ADNOC announced the award of a $946 million (AED3.47 billion) EPC contract for the strategic long-term development of its Umm Shaif field

Abu Dhabi National Oil Company (ADNOC) announced the award of a $946 million (AED3.47 billion) Engineering, Procurement, and Construction (EPC) contract for the strategic long-term development of its Umm Shaif field. The investment supports ADNOC’s oil production capacity plans of five million barrels per day (mmbpd) by 2030 while ensuring energy security for the United Arab Emirates (UAE) and partners around the world.

The ‘Long-Term Development Plan – Phase 1’ (LTDP-1) EPC contract was awarded by ADNOC Offshore to National Petroleum Construction Company (NPCC) after a competitive tender process. The scope of the award covers engineering, procurement, fabrication, installation and commissioning activities required to maintain Umm Shaif’s 275,000 barrels per day (mbd) crude oil production capacity, increase efficiencies and enhance the field’s long-term potential. 

Significantly, over 75% of the total award value will flow back into the UAE economy under ADNOC’s In-Country Value (ICV) program, ensuring that more economic value remains in the country from the contracts it awards. This reinforces ADNOC’s commitment to the UAE’s ‘Principles of the 50’, the economic blueprint for sustainable growth announced by the UAE’s leadership in 2021.

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “This important award for the long-term development of ADNOC’s pioneer offshore Umm Shaif field will maximize efficiencies while maintaining future output and supporting ADNOC’s strategic objective of five million barrels of oil production capacity a day by 2030. In addition, the development plan for Umm Shaif underpins ADNOC’s commitment to maintain its position as a leading low-cost oil producer and strengthens our role as a reliable energy provider to customers around the world. 

“We are pleased to be collaborating again with NPCC as a contractor bringing leading expertise and advanced technologies along with a proven industry track record. Importantly, the very high In-Country Value generated from this contract award will stimulate new business opportunities for the private sector and, in line with the directives of the UAE’s wise Leadership, support the UAE’s economic growth as we look to our next 50 years.” 

The EPC contract, which is due to be completed in 2025, comprises two packages for network expansion and new well-head towers. The first package includes modifications and extension of existing facilities with installation of new subsea cables and pipelines for debottlenecking. The second package includes the design of three lean well-head towers with associated new pipelines. The contract incorporates ‘fit for the future’ technology including rigless electrical submersible pumps (ESP) and other digital field technologies, which will increase efficiencies while maintaining current production capacity.

Ahmad Saqer Al Suwaidi, CEO of ADNOC Offshore, said: “This contract is an important contributor to ADNOC Offshore’s plans as we build our production capacity to over 2 million barrels a day in the coming years in support of ADNOC’s smart growth strategy. The award follows a highly competitive bid process, which included a rigorous assessment of how much of the contract value would support the growth and diversification of the UAE’s economy through ADNOC’s ICV Program.” 

Umm Shaif is ADNOC’s most historic offshore asset. 2022 marks the 60th anniversary of the UAE’s first oil export of Umm Shaif crude oil (July 1962). Continuing investment and development at Umm Shaif ensures responsible maximization of profitability, enabling greater value for the UAE, ADNOC and its partners.  

Source: ADNOC

Gazprom and CNPC sign agreement to supply Russian pipeline gas to China via Far Eastern route

Gazprom and China National Petroleum Corporation (CNPC) signed a long-term Sales and Purchase Agreement for natural gas to be supplied via the Far Eastern route.

The signing of this document is an important step towards further strengthening the mutually beneficial cooperation between Russia and China in the gas sector. As soon as the project reaches its full capacity, the amount of Russian pipeline gas supplies to China is going to grow by 10 billion cubic meters, totaling 48 billion cubic meters per year (including deliveries via the Power of Siberia gas trunkline).

“This is already a second contract to be signed for Russian gas supplies to China, and it is indicative of the exceptionally strong mutual trust and partnership between our countries and companies. Our Chinese partners from CNPC have already seen for themselves that Gazprom is a reliable gas supplier,” said Alexey Miller.

Source: Gazprom

SNC-Lavalin awarded $22 million fuel channel inspection contract at Bruce Power

Candu Energy Inc., a member of the SNC-Lavalin Group, has been awarded a three-and-a-half year, $22 million contract to perform advanced non-destructive examination (ANDE) and associated maintenance on fuel channels for the CANDU heavy water reactors at Bruce Power. Under the contract, the Company will provide critical inspection and analysis that support the long-term health of the reactor core which leads to a safer, sustainable asset that produces low-cost power. SNC-Lavalin has been performing fuel channel inspections for Bruce Power for more than six years.

“Our experienced specialists, technicians, engineers, designers, programmers and software developers align us to execute these types of projects as a one-stop-shop for all reactor inspection and maintenance needs,” said Sandy Taylor, President, Nuclear, SNC-Lavalin. “With access to over 500 patented solutions, we leverage our innovative technology portfolio and use the latest tools to develop industry best practices to manage technically complex challenges with precision.”

“Bruce Power and SNC-Lavalin have a long history of collaboration to ensure that nuclear safety remains paramount as we deliver clean, reliable power to Ontario homes and businesses for the long term,” said Gary Newman, Bruce Power’s Chief Engineer & Senior Vice President, Engineering. “ANDE is one of the tools that helps us establish a very clear picture of the health of the pressure tubes in our units by providing extremely accurate measurements and data used to ensure their integrity which allows us to continue to provide power to the province in a safe and predictable manner.”

While leading fuel channel inspection (FCI) programs for heavy water reactors around the world, SNC-Lavalin also provides solutions for all reactor technologies across the entire nuclear lifecycle, particularly waste management and decommissioning, as well as licensing, design, nuclear new builds, asset management, life extension, late life management and refurbishments.

Source: SNC-Lavalin

ADNOC Onshore has awarded contracts worth $169 million (AED 621 million) for well testing services

ADNOC Onshore has awarded contracts worth $169 million (AED 621 million) for well testing services as we continue to work towards 5 million barrels per day oil production capacity by 2030.

The services will apply best-in-class technology to optimize the performance of our onshore reservoirs, while minimizing the environmental impact of the process.

Over 60% of the value will flow back into the UAE’s economy under ADNOC’s flagship In-Country Value program to support growth and diversification.

The contracts of up to five years were awarded to NESR Energy Services, AlMansoori Production Services and Al Ahlia Oilfields Development Company following a competitive tender process.

Source: ADNOC

ADNOC Announces Gas Discovery Offshore of Abu Dhabi

The Abu Dhabi National Oil Company (ADNOC) announced the discovery of natural gas resources offshore of the Emirate of Abu Dhabi. 

Interim results from the first exploration well in Abu Dhabi’s Offshore Block 2 Exploration Concession operated by Eni, indicate between 1.5 – 2 trillion standard cubic feet (TSCF) of raw gas in place. 

This discovery marks the first from Abu Dhabi’s offshore exploration concessions, highlighting the continued success of ADNOC’s block bid rounds and its expanded approach to strategic partnerships. A consortium led by Eni and PTT Exploration and Production Public Company Limited (PTTEP) were awarded the exploration rights for Offshore Block 2 in 2019 as part of ADNOC’s debut competitive block bid round. 

His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said: “The discovery of material natural gas resources in Offshore Block 2 underscores how ADNOC’s expanded approach to strategic partnerships is enabling us to accelerate the exploration and development of Abu Dhabi’s untapped hydrocarbon resources and create long-term value for the UAE, in line with the Leadership’s wise directives. We congratulate our valued partners, Eni and PTTEP, on this achievement and we look forward to continuing to work with all our strategic partners to sustainably unlock Abu Dhabi’s hydrocarbon resources and stay ahead of the world’s growing demand for lower-carbon energy.” 

Offshore Block 2 covers an area of 4,033 square kilometers northwest of Abu Dhabi. The discovery in the block was enabled by new insights from the world’s largest combined onshore and offshore three-dimensional (3D) mega seismic survey currently underway in Abu Dhabi.

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “The positive interim results recorded by our partners, Eni and PTTEP, in the exploration of Offshore Block 2 follows the recent significant discovery in Onshore Block 4, highlighting the continued success of ADNOC’s accelerated exploration and development program. Both discoveries leveraged insights from ADNOC’s ongoing 3D mega seismic survey, underpinning the important role the survey is playing for us and our strategic partners as it utilizes state-of-the-art technologies to help identify new hydrocarbon resources across Abu Dhabi.” 

Drilling operations continue to reach deeper formations to fully unlock the resource volume in Offshore Block 2 and further explore the promising potential across the block as well as across Offshore Blocks 1 and 3 exploration concession areas, which were also awarded to Eni and PTTEP.

This achievement follows the announcement in December 2021 of the discovery of up to 1 billion barrels of oil equivalent (BBOE) in Onshore Block 4 Exploration Concession, operated by INPEX/JODCO.

ADNOC launched Abu Dhabi’s first and second competitive block bid rounds in 2018 and 2019 respectively, offering a set of major onshore and offshore blocks to international companies, on behalf of the Government of Abu Dhabi. Based on existing data from detailed petroleum system studies, seismic surveys, exploration and appraisal wells data, estimates suggest the blocks hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas.

Source: ADNOC

TotalEnergies and Veolia Join Forces to Accelerate the Development of Biomethane

TotalEnergies and Veolia have signed an agreement to produce biomethane from Veolia waste and water treatment facilities operating in more than 15 countries. 

The partners will develop and co-invest in a portfolio of international projects, with the ambition to produce up to 1.5 terawatt-hours (TWh) of biomethane per year by 2025. This production of renewable gas made from organic waste will be equivalent to the average annual natural gas consumption of 500,000 residents and will avoid some 200,000 tons of CO2 per year. TotalEnergies will market the resulting biomethane as a renewable fuel for mobility or as a substitute for natural gas in other uses.

As part of this agreement, the partners will pool their industrial know-how in biomethane production. Veolia will provide its expertise in the production and processing of biogas from its facilities, and TotalEnergies will contribute its in-depth knowledge of the entire biomethane value chain.

“We are pleased to partner with Veolia to promote the recovery of waste through the production of biomethane, and thereby the circular economy, one of the pillars of sustainable development,” said Stéphane Michel, President Gas, Renewables & Power at TotalEnergies. “The development of biomethane is part of TotalEnergies’ transformation into a broad energy company, and the deployment of its ambition to be a major player in renewables.”

“Our partnership with TotalEnergies is in line with Veolia’s strategy to develop solutions for decarbonizing the energy mix, notably with biogas, as part of an ecological transition,” said Estelle Brachlianoff, Chief Operating Officer of Veolia. “At the global level, the biogas resources at our sites offer more than 6 terawatt hours of primary energy. With this biomethane production potential and our know-how in biogas management, Veolia intends to become a leading player in the value chain while developing more decentralized and local green energy production capacity.”

Source: TotalEnergies

McDermott’s CB&I Named Tank Contractor for Venture Global’s Plaquemines LNG Phase One Project

McDermott’s storage business, CB&I, has been awarded a contract by Venture Global Plaquemines LNG for two 200,000 cubic-meter liquefied natural gas (LNG) storage tanks as part of the first phase of the Plaquemines LNG export project. 

Located on the Mississippi River, 20 miles south of New Orleans, Plaquemines LNG is expected to have a combined export capacity of up to 20 million metric tonnes per year. The phase one scope for CB&I includes the engineering, procurement and construction of two full containment concrete LNG storage tanks with associated foundations, tank top mechanical systems and pipe racks extending to the main facility.

CB&I recently achieved ready for cooldown as scheduled for two LNG tanks of similar size and scope for the Venture Global Calcasieu Pass LNG project.

“Venture Global witnessed firsthand the agility of our project management and construction teams to adjust, adapt and overcome the challenges inherent in executing work on the U.S. Gulf Coast,” said Cesar Canals, Senior Vice President of CB&I. “We take great pride in our unwavering commitment to getting the job done safely and on schedule, and appreciate being selected as the tank contractor for Venture Global’s next development.”

Source: McDermott