Petrofac Awarded Engineering and Procurement Services Contract by Shell in Oman

Petrofac, a leading provider of services to the global energy industry, has been selected by Shell to undertake new Engineering and Procurement Services (EPS) scopes in Oman.

The first is a five-year EPS contract for Shell’s Block-10 Mabrouk Phase-2 Project, located in the Al Wusta Governate of Oman – around 400km from the capital, Muscat. The contract was awarded following a competitive tender and the scope includes well-pads for multiple wells, remote manifold stations, and connecting pipelines, including water infrastructure for well development and a Field Operations Base.

Two further contracts, to provide residual engineering and procurement services to complete Phase-1B of the Block-10 development, were secured under Petrofac’s global Enterprise Framework Agreement with Shell.

Elie Lahoud, Chief Operating Officer of Petrofac’s Engineering & Construction business, said: “Petrofac has been operating in Oman for over 30 years, delivering more than 15 major projects and US$3.7 billion of in-country value during that time. We are delighted to continue our support of the Sultanate’s energy industry and its Vision 2040 priorities.”

The three newly awarded contracts will be delivered in-country utilising Petrofac’s multi-discipline engineering and project execution office in Muscat. Petrofac has been supporting Oman’s energy industries since 1988 to design, build, operate, and maintain facilities, as well as developing local workforce competence and generating in-country value.

Shell Integrated Gas Oman BV, a subsidiary of Shell plc, along with its partners, OQ and Marsa Liquefied Natural Gas, signed a concession agreement to develop and produce natural gas from Block-10 in December 2021. Shell became operator of the field at the signing.

Source: Petrofac

Maire Tecnimont awarded €80 Million EPCM refining contract in Greece

Maire Tecnimont S.p.A. announces that its subsidiary KT – Kinetics Technology S.p.A. has been awarded an EPCm (Engineering, Procurement & Construction Management) contract by Motor Oil Hellas (MOH) for a new C3 splitter unit to be implemented inside the Corinth Refinery, in Greece. MOH is a leading oil refining company in Greece and a key market player in Southern Europe and the Mediterranean region. 

The contract value is equal to €80 million and relates to the execution of a new C3 splitter unit aimed at separating the mixture of propane and propylene coming from the existing fluid catalytic cracking unit in order to produce polymer grade propylene, one of the most important building blocks for the entire chemical industry. 

The contract’s scope of work includes full engineering activities and supply of all materials and equipment as well as construction supervision services, while construction activities will be carried out by subcontractors directly selected by the client, under KT-Kinetics Technology’s responsibility and management. The Corinth Refinery is among the most complex refineries of its kind in Europe and processes crude oil of various characteristics to produce a full range of high-end products.

Alessandro Bernini, Maire Tecnimont Group Chief Executive Officer, commented: “This important award represents a new significant step to strengthen the business relationship with a leading player such as MOH, thanks to our technological know-how and process expertise, which will ensure the best environmentally performing standards. We are glad to support the industrial development plans envisaged by MOH, as it is set to play an increasingly strategic role in the energy transition in the Mediterranean region”.

Source: Maire Tecnimont

Aramco affiliate S-OIL to build $7 billion petrochemical project in South Korea

Aramco is making its biggest ever investment in South Korea to develop one of the world’s largest refinery-integrated petrochemical steam crackers through its S-OIL affiliate, in line with the company’s strategy to maximize the crude to chemicals value chain.

The $7 billion Shaheen project aims to convert crude oil into petrochemical feedstock and would represent the first commercialization of Aramco and Lummus Technology’s TC2C thermal crude to chemicals technology, which increases chemical yield and reduces operating costs. It follows an earlier $4 billion investment into the first phase of the petrochemical expansion completed in 2018.

Located at S-Oil’s existing site in Ulsan, the new plant is planned to have the capacity to produce up to 3.2 million tons of petrochemicals annually and include a facility to produce high-value polymers. The project is expected to start in 2023 and be completed by 2026.

The steam cracker is expected to process by-products from crude processing, including naphtha and off-gas, to produce ethylene — a building block petrochemical used to make thousands of everyday items. The plant is also expected to produce propylene, butadiene and other basic chemicals.

Aramco President & CEO, Amin H. Nasser, said: “The global petrochemical landscape is rapidly evolving with demand growth anticipated to accelerate, driven in part by rising consumption from Asia’s emerging economies. That is why S-Oil’s Shaheen is well positioned to meet rising demand for the materials that will be required across the region’s key industries. By further integrating refining and chemical processes through the first commercialization of Aramco’s thermal crude to chemicals technology, we aim to create a more efficient, competitive and sustainable platform for growth, while paving the way for further downstream expansion.”

Aramco Senior Vice President of Downstream, Mohammed Y. Al Qahtani, said: “Shaheen aspires to be a gamechanger not only for S-OIL in South Korea, but also for our global chemicals business, allowing us to process a greater range of feedstocks in a more efficient and less energy-intensive way. The project represents the first large-scale deployment of Aramco’s thermal crude to chemicals technology and shows how, through better design, we can contribute to the transition to more efficient and more sustainable production processes.”

The new steam cracker is planned to use mixed feedstocks, outperforming naphtha-based crackers in terms of overall efficiency and performance. Upon project completion, S-OIL chemical yield based on volume could almost double to 25%, which demonstrates the impact of this cutting-edge technology, complementing Aramco’s strategy to expand its liquids to chemicals capacity to up to 4 million barrels per day.

Aramco is the majority shareholder of S-OIL, holding more than 63% of the company’s shares through its Aramco Overseas Company B.V. subsidiary.

Source: Aramco

Aibel awarded an EPCIC contract worth a billion NOK for Equinor’s Irpa gas field development

Aibel has been awarded a billion NOK contract by Equinor for extensive modifications and preparation of the Aasta Hansteen platform for tie-in of the Irpa field (previously Asterix).

Aibel estimates the contract to be a large contract which at peak will employ over 200 people. Management and engineering will be carried out from Aibel’s office in Stavanger with the support of the offices in Oslo and Singapore. In addition, the project will exploit synergies with Aibel’s existing maintenance and modification contract for Aasta Hansteen, which is led by the Harstad office. Prefabrication and module assembly will take place at Aibel’s yards in Haugesund and Thailand.

The EPCIC contract (Engineering, Procurement, Construction, Installation and Commissioning) was an option when Aibel last year was awarded the FEED contract (Front End Engineering and Design) to plan the modifications in detail.

“The contract award is an acknowledgment to the organisation that has worked with the FEED. At the same time, it confirms Aibel’s leading position in modifications of infrastructure on the Norwegian continental shelf. We have a long history as main supplier within this area and look forward to providing an integrated solution in close cooperation with Equinor,” says President and CEO in Aibel, Mads Andersen.

Irpa is a gas field located 80 kilometres west of the Aasta Hansteen platform in the Norwegian Sea. The field will be developed as a so-called tie-in to Aasta Hansteen with export through the 482 km long gas pipeline Polarled to the Nyhamna gas processing plant.
In order to receive production from the Irpa field, comprehensive modifications must be made to the Aasta Hansteen platform, which will also extend its lifespan by seven years. This includes, among other things, integration work on the platform’s existing processing equipment as well as construction and installation of an approx. 450 tonnes monoethylene glycol module (MEG module).

Engineering work starts immediately, while the first offshore activities are expected already during February 2023. The project is expected to be completed in 2026.

Source: Aibel 

Subsea7 awarded EPCI contract offshore Trinidad and Tobago

Subsea7 announced the award of a contract to Subsea Integration Alliance to support the development of bp’s Cypre project, a gas development located offshore Trinidad and Tobago. Subsea7’s scope of the awarded Subsea Integration Alliance contract is substantial.

Subsea7’s scope covers the concept and design, engineering, procurement, construction and installation of a two-phase liquid natural gas tieback to the Juniper platform through dual flexible flowlines and a manifold gathering system, along with topside upgrades.

Design, engineering, and project management will commence immediately at Subsea7’s offices in the USA, with offshore installation planned for 2024.

Craig Broussard, Vice President for Subsea7 US, said: “We have been working closely with bp and our suppliers at the earliest possible stage to help develop and deliver an integrated SPS and SURF solution that optimises cost and efficiency, to accelerate first gas.”

Olivier Blaringhem, CEO for Subsea Integration Alliance said: ”bp’s Cypre project is a prime example of our ability to harness the key strengths of Subsea Integration Alliance; Subsea7 with its expertise in executing complex EPCI projects, and OneSubsea’s fast-track distribution of subsea production systems. Combined, we are delivering a refined solution which enables early first gas.” 

Source: Subsea7

JGC and Kiewit JV Awarded an EPC Contract for one of the World’s Largest Ethylene Plants in the United States

JGC HOLDINGS CORPORATION announced that a Joint Venture consisting of JGC America, Inc. and Kiewit Energy Group Inc. (Kiewit), hereafter referred to as “JKJV”, has been awarded an Engineering, Procurement, and Construction (EPC) Contract for the ethylene portion of an integrated polymers project in Orange, Texas, U.S.A. The client, known as Golden Triangle Polymers, is a joint venture between Chevron Phillips Chemical and QatarEnergy. The client has made the final investment decision for the project.

The complex will use ethane derived from US shale gas as the feedstock for the production of ethylene and HDPE (High Density Polyethylene). The ethylene plant will have an annual production capacity of 2 million tons, one of the largest such plants in the world, to help meet increasing demand for polymer products arising from the continued growth of the global middle class.

JGC has a track record of involvement in over 50 ethylene plant construction projects, including large-scale facilities inside and outside Japan, and is regarded as one of the world’s leading contractors with its numerous project accomplishments and advanced engineering technologies. Chevron Phillips Chemical and QatarEnergy have been important clients of JGC for many years. In 2015 JGC completed a large-scale gas processing plant construction project in Qatar for QatarEnergy, and in 2008 and 2011, it delivered two large-scale petrochemical plant construction projects in Saudi Arabia for Chevron Phillips Chemical. Most recently, in 2017, JGC completed a large-scale petrochemical plant construction project for Chevron Phillips Chemical in Texas.

The selection of JKJV as the EPC Contractor for this project reflects the client’s positive evaluation of the strengths of the JKJV’s proposal founded on JGC’s track record,relationships with the client, and Kiewit’s fabrication and construction capabilities in the U.S.A.

As a world-leading engineering contractor in the ethylene field, the JGC Group of companies will continue to actively pursue sales activities for ethylene plant construction projects planned worldwide.

Source: JGC 

Saipem awarded new offshore drilling contracts in the Middle East and West Africa worth approximately 800 million USD

Saipem has been awarded new offshore drilling contracts, three in the Middle East and two in West Africa for a total amount of approximately 800 million USD. This value is considered net of the leasing costs of the vessels used for the works

In the Middle East two new contracts have been awarded for two high-specification Jack-Up drilling units, the Perro Negro 12 and Perro Negro 13, chartered by third parties for drilling and workover activities on the specific projects. The duration of the operations will be five years plus two optional years for the first unit and three years plus one optional year for the second unit. Both the projects are scheduled to start between the third and the fourth quarter 2023. The third contract encompasses the five-year extension for an existing contract for the high-specification Jack-Up unit Sea Lion 7, highly versatile self-elevating drilling unit able to operate up to 375 feet water depth.

In West Africa, Saipem has been awarded two contracts in the Ultra Deep-Water segment for drilling operations with the sixth-generation Drillship Saipem 12000.

The first contract has been awarded by Eni Cote d’Ivoire for drilling operations offshore Ivory Coast, which are expected to start in the fourth quarter 2022 and extending the current activities of the rig in the area of about six months.

The second contract has been awarded by Azule Energy for drilling, completion and testing of development and exploration wells offshore Angola in Block 15/06 operated by Eni Angola S.p.A. The contract will have the duration necessary to drill and complete 12 firm wells (estimated lasting 26 months) and include the possibility of extension for an optional term. The project is scheduled to start in 2023 in continuity with the previous works of the rig in West Africa.

These long-term awards in the Middle East confirm Saipem strategy towards this key area for its business and the awards in West Africa secure the continuity of operations in line with Saipem strategy for the ultra-deepwater market in this area. 

With the contracts announced, since the beginning of 2022 Saipem has been awarded new contracts in the offshore drilling segment for a total amount of about 1,6 billion EUR equivalent.

Source: Saipem 

Doosan Enerbility Wins KRW 1.6 trillion Contract for Construction of El Dabaa Nuclear Power Plant Turbine Island

Doosan Enerbility announced that it had signed a contract valued to be KRW 1.6 trillion with Korea Hydro and Nuclear Power (KHNP) for construction of the turbine island at the El Dabaa Nuclear Power Plant in Egypt. This marks the first time that Doosan Enerbility has won a contract that calls for construction of an overseas nuclear power plant, in addition to its role of supplying the main equipment, such as the reactors and steam generators.

Doosan Enerbility signed the contract for construction of the turbine island of the El Dabaa Nuclear Power Plant in Egypt, with the related parties, including Jungmook Lim, KHNP’s Cairo Office Head, and Daeyong Yu, Doosan Enerbility’s Cairo Branch Director, in attendance at the signing ceremony.

As for the El Dabaa Nuclear Power Plant project, this is a project that was won in 2017 by ASE JSC, a subsidiary of Russia’s state-owned nuclear power company Rosatom, from the Egyptian Atomic Energy Agency (NPPA). The project requires the building of four 1,200MW reactors at a site that is located at a distance of 300km to the northwest of Cairo. This past August, KHNP signed the contract with ASE JSC to construct the turbine island of the El Dabaa Nuclear Power Plant. The construction of the Tower Building No. 1 is scheduled to commence in August 2023.

Under the recently signed contract, Doosan Enerbility will be building a total of 82 buildings and structures, including the turbine building, water treatment, and air conditioning systems, by 2029, with preparations also being made to have the turbine and generator installed. Furthermore, to fulfill the Egyptian government’s request for localization, partnerships are being pursued with local companies in the areas of construction and equipment & materials, which will likely contribute to the mutual growth of the nuclear sector in both Egypt and Korea.

“As this is our first nuclear power plant construction contract won overseas, it is significant for Doosan Enerbility in that we will now be able to boast of a nuclear new build track record in not only Korea, but in the global market as well,” said Inwon Park, CEO of Doosan Enerbility’s Plant EPC Business Group. He added, “We will do our utmost to successfully complete this project, so that we may contribute to the government and KHNP’s efforts to win more global nuclear projects in the future.”

Doosan Enerbility holds the capability for manufacturing not only the main components of nuclear power plants, such as the reactor and steam generator, but also the capability for constructing nuclear power plants. As of now, a total of 34 reactors and 124 steam generators have been supplied by Doosan, with 11 of the reactors and 44 of the steam generators having been exported overseas. Doosan also participated in the construction of ten nuclear power plants in Korea, such as the Hanul Nuclear Power Plant Units 1 to 6 and Shin-Kori Nuclear Power Plant Units 3 to 6.

Source: Doosan Enerbility

Wood secures FEED for first large-scale green hydrogen production facility in Mosjøen in Norway

Wood has been awarded the front-end engineering design (FEED) scope for Gen2 Energy’s green hydrogen production facility, located in Mosjøen in northern Norway.

Gen2 Energy is a Norwegian company dedicated to developing, building, owning and operating an integrated value chain for green hydrogen. The company targets having several large-scale production facilities for green hydrogen, making it easy and cost efficient for consumers to adapt to green hydrogen.

As a leader in hydrogen production solutions, Wood will apply its decades of hydrogen expertise and breadth of project implementation capabilities to develop the new 100MW plant – the first large-scale commercial green hydrogen production facility in Norway.

The award follows Wood’s initial conceptualisation of the plant as well as other production facilities that Gen2 Energy is developing to accelerate the distribution of hydrogen produced in Norway via zero-emission renewable energy to the UK and across Europe.

Due to good access to low-priced electricity, Mosjøen in Vefsn municipality in northern Norway is an excellent place for large-scale production of green hydrogen. The first phase of Gen2 Energy’s plan is to build a 100MW plant with a continuous production of around 45 tonnes of green hydrogen per day.

Lars Fredrik Bakke, Wood’s Vice President of Norway, said: “We are excited to support Gen2 Energy and enable the acceleration of green hydrogen production in Norway. With our deep domain expertise in hydrogen projects, we are well positioned to support the delivery of large-scale production facilities which will play a critical role in enabling a transition to a lower carbon energy mix. We look forward to building our relationship with Gen2 Energy to support their continued growth and uniting in our shared ambition to create a greener, more sustainable future.”

Jonas Meyer, CEO of Gen2 Energy, said: “The contract with Wood represents a milestone in Gen2 Energy’s targeted work to realise large-scale production of green hydrogen in Norway. In close collaboration with Wood, we will build a facility that turns green hydrogen into a commercial product for markets in Norway and northern Europe. Gen2 Energy’s hydrogen expertise matches very well with Wood’s industrial project capabilities.”

This contract will be delivered by Wood’s existing teams in Norway, with support from the company’s global experts from within its operations and projects business units. Wood will execute the FEED study jointly with personnel from Gen2 Energy.

Source: Wood 

Técnicas Reunidas and Allied Methanol have signed an agreement to develop an integrated methanol and blue ammonia plant in Australia

Técnicas Reunidas S.A. and Allied Methanol Pty. Ltd. have signed an agreement to develop an integrated methanol and blue ammonia production plant in Darwin, in the Northern Territory, Australia. 

The plant configuration will enable carbon emissions to be reduced by half compared to traditional technologies. 

The agreement contemplates that Técnicas Reunidas will carry out the front-end engineering design (FEED) of the plant in the coming months, once the corresponding financing has been obtained. 

The development of the FEED, would put Técnicas Reunidas in a good position to continue with the following phases of the project execution, which includes detailed engineering, equipment and materials procurement and construction management.

Full execution of the project will be subject to the outcome of the FEED and the subsequent securing of the necessary financing and permits from Allied Methanol. The project will involve an investment of USD 800 million. 

The methanol and blue ammonia plants will use Haldor Topsoe technology and will have a name plate capacity of 1350 and 415 tons per day, respectively.  The plant is scheduled for commissioning in 2026.

The plant configuration will enable carbon emissions to be reduced by half compared to traditional technologies.

Methanol is an essential ingredient to produce hundreds of everyday consumer items. It is a clean and cost-competitive alternative to fuels. The main current application of blue ammonia is in the fertilizer industry, and it is expected to be used in shipping as a net zero- emission fuel alternative.

This project further consolidates Técnicas Reunidas’ commitment to establish itself as a global leader in energy transition markets, especially in relation to the hydrogen value chain, circular economy, bioproducts, carbon capture and recovery of critical materials.

Source: Técnicas Reunidas

ADNOC Awards Record $4 Billion Framework Agreements for Integrated Drilling Fluids Services

Abu Dhabi National Oil Company (ADNOC) announced the award of three framework agreements valued at $4 billion (AED14.68 billion) for integrated drilling fluids services (IDFS) to support the ongoing expansion of its lower cost and lower-carbon intensive production capacity as it responds to growing global demand for energy. 

The awards, the largest of their kind in the industry, were awarded to ADNOC Drilling Company P.J.S.C (ADNOC Drilling), Schlumberger Middle East S.A. (SLB) and Halliburton Worldwide Limited Abu Dhabi (Halliburton). They cover ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years.

Over 80% of the award value could flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program over the duration of the agreements. Furthermore, the contractors will create job opportunities for UAE Nationals and invest in local manufacturing of equipment and chemicals required for the IDFS. 

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “These record framework agreements for integrated drilling fluids services continue ADNOC’s significant investment in drilling-related services to enable the expansion of our production capacity and responsibly unlock the UAE’s leading low-cost, lower-carbon intensity hydrocarbons. In line with the wise directives of the UAE’s leadership, we are prioritizing in-country value as we respond to growing global demand for energy and these agreeements will create skilled job opportunities for UAE Nationals in the private sector, drive domestic manufacturing and support the UAE’s industrial growth.”

The framework agreements will enable investment in local manufacturing of equipment and facilities, including in Liquid Mud Plants and a Waste Management Facility, as well as key commodity chemicals. This underscores ADNOC’s efforts to create long-term opportunities in the UAE’s manufacturing sector and drive industrial growth.

ADNOC Drilling’s scope of the framework agreements is valued at up to $1.6 billion (AED5.87 billion). This reflects the company’s transformation and expansion of its service profile into a fully Integrated Drilling Services (IDS) company, following the development of its Oilfield Services division in partnership with Baker Hughes.

The framework agreements were awarded following a competitive tender process. They will enable hundreds of millions of dollars in cost savings through ADNOC’s optimized procurement approach that focuses on longer-term contracts with an optimal number of suppliers that can reliably deliver at competitive rates.

Since November 2021, ADNOC has awarded over $16 billion (AED 58.72 billion) in agreements for drilling-related equipment and services, including these awards and other agreements for wellheads, downhole completion equipment, liner hangers, cementing service, wireline logging, directional drilling and logging while drilling. The average ICV of all of these awards combined amount to 70% value flowing back ito the UAE economy, supporting manufacturing growth, employment and economic diversification. 

IDFS are necessary to drill the wells that will enable ADNOC expand its oil production capacity and drive gas self-sufficiency for the UAE. Some of these services include provision of products, engineering, technical laboratory support, filtration equipment and solid control equipment. 

Source: ADNOC