Aramco and Rongsheng explore new opportunities in KSA and China

Aramco is exploring the formation of a joint venture in the Saudi Aramco Jubail Refinery Company (“SASREF”) with Chinese partner Rongsheng Petrochemical Co. Ltd. (“Rongsheng”) and significant investments in the Saudi and Chinese petrochemical sectors, in partnership with Rongsheng.

The Company recently signed a cooperation framework agreement that envisions Rongsheng’s potential acquisition of a 50% stake in SASREF. The agreement also lays the groundwork for the development of a liquids-to-chemicals expansion project at SASREF, in addition to Aramco’s potential acquisition of a 50% stake in Rongsheng affiliate Ningbo Zhongjin Petrochemical Co. Ltd. (ZJPC) and participation in ZJPC’s expansion project.

Mohammed Y. Al Qahtani, Aramco Downstream President, said: “These discussions highlight our ambition to advance our liquids-to-chemicals strategy with strategic partner Rongsheng, both in the Kingdom of Saudi Arabia and China. In building on our existing relationship, we aim to advance our expansion in a key geography and attract new investment to the Saudi downstream sector.” 

In July 2023, Aramco acquired a 10% interest in Rongsheng through its subsidiary Aramco Overseas Company BV, based in the Netherlands. Rongsheng in turn owns a 100% equity interest in ZJPC, which operates an aromatics production complex and has an interest in a joint venture that produces purified terephthalic acid. 

Source: Aramco

Wood to Develop Major Expansion of Antofagasta’s Nueva Centinela Copper Mine Project

Wood has been awarded a contract by Antofagasta Minerals S.A (AMSA) for its Nueva Centinela copper project. Located in the Antofagasta region of Chile, the contract will see Wood support AMSA in expanding the Esperanza Sur pit.

Wood has been appointed as the strategic partner for project execution and will work together with AMSA to deliver all key aspects of the project. This will include managing the construction of a new concentrating plant, ore crushing facility, conveyor transportation systems, sea water pipeline, tailing disposal and facility expansions as well as other necessary infrastructure at the Centinela port. The project forms part of AMSA’s $4.4 billion investment into the Minera Centinela facility and will support the world’s increased demand for copper – largely driven by the energy transition and the global move towards electrification.

The project will position Centinela to become one of the top 15 copper mines in the world by output, producing an additional 170,000 copper equivalent tonnes per annum – enough copper to build over two million electric cars. First production is expected in 2027 with work commencing in May 2024.

Jim Shaughnessy, Wood’s President of Minerals, Metals and Life Sciences, said: “Copper has a pivotal role to play in our energy transition. As the world continues to build more sustainable energy systems, a safe and secure supply of energy transition materials is critical. We’re proud to build on our existing relationship with AMSA and support increased production to meet surging demand for copper.

“This award underlines the strength of our mineral processing capability and experience of delivering end-to-end EPCm services for complex, large-scale projects.”

The near three-year project will be supported by around 130 Wood employees with the company planning to hire around 50 new positions immediately as a result of the award.  The majority of these will be on-site, with the remainder at Wood’s Santiago office.

Source: WoodPlc

Baker Hughes Awarded Significant Gas Technology Scope for Phase 3 of Saudi Arabia’s Master Gas System

Baker Hughes announced that it has received an order by Worley, for and on behalf of Aramco, to supply gas technology equipment for the third phase of Saudi Arabia’s Master Gas System project. The award was booked in the first quarter of 2024.

Baker Hughes will supply 17 pipeline centrifugal compressors driven by state-of-the-art aeroderivative gas turbines for Aramco’s project. The new 4,000-km pipeline is vital to the Kingdom’s energy transition, with expectations to increase domestic gas distribution and contribute to a reduction of carbon emissions and oil consumption. The order follows the delivery of 18 of Baker Hughes centrifugal compressors driven by aeroderivative gas turbines for Phase 1 and 2 of the Master Gas System projects executed by Baker Hughes.

“For over 30 years, Baker Hughes has been a trusted partner in natural gas operations, and our long-standing partnership with Aramco is helping to reduce emissions by transitioning to gas,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes. “Baker Hughes solutions are advancing the efficient use of natural gas, and we are proud to be delivering a reliable system to transport and distribute gas across Saudi Arabia.”

Baker Hughes is also investing in expanding its manufacturing site in Modon, Saudi Arabia. In addition to doubling the capacity of its workforce, the upgraded site will further support the delivery of projects in the country, including MGS3, with localized testing and packaging solutions. In February, Baker Hughes announced the delivery of the first two trains of advanced hydrogen compression solutions for the NEOM green hydrogen project in the Kingdom, the largest such project in the world.

Source: Baker Hughes

Technip Energies Awarded a Contract for Marsa LNG Project in Oman

Technip Energies has been awarded a substantial contract by TotalEnergies and OQ for the Marsa LNG bunkering project located in Sohar, Oman. 

The contract covers Engineering, Procurement and Construction (EPC) of a natural gas liquefaction train with an LNG production capacity of 1 Mtpa(2). The plant will use electric-driven motors instead of conventional gas turbines and will be powered by renewable electricity from a planned nearby solar farm which will cover 100% of the annual power consumption of the LNG plant. This is positioning the site as one of the lowest greenhouse gases intensity LNG plants ever built worldwide. The LNG produced will notably be used as a marine fuel to reduce the sipping industry’s carbon footprint.

The Marsa LNG project is an integrated complex developed by TotalEnergies (80%) and OQ (20%).

Arnaud Pieton, CEO of Technip Energies, commented, 

“The world’s net-zero trajectory will require LNG as a critical source of energy, while addressing emissions abatement. TotalEnergies and OQ’s progressive Marsa LNG project is an example of how we can decarbonize the LNG value chain by powering its production with renewable energy and using it as a marine fuel to reduce emissions linked to maritime transportation. By leveraging our innovation and global leadership in LNG infrastructure design and delivery, we are proud to support TotalEnergies and the Sultanate of Oman in providing reliable, affordable and sustainable energy to the world.”

Source: Technip Energies

Baker Hughes signed a MOU with Halfaya Gas Company on Gas Flaring Reduction Project in Iraq

Baker Hughes has signed a memorandum of understanding (MoU) with Iraq-based Halfaya Gas Company (HGC) with the objective of setting the basis to establish a collaboration for a gas flaring reduction project at the Bin Umar gas processing plant in southeastern Iraq. The signing took place in Washington, D.C., in the presence of H.E. Mohammed Shia’ Al Sudani, prime minister of the Republic of Iraq, during the prime minister’s official visit to the United States to strengthen bilateral ties and facilitate new private sector initiatives, including enhancing the resilience and sustainability of Iraq’s energy ecosystem.

The MoU shall lay the groundwork for Baker Hughes and HGC to collaborate by leveraging Baker Hughes’ proven technology and experience in developing and implementing deflaring solutions, including the supply of critical turbomachinery and process equipment, a pre-Front End Engineering and Design (FEED) study of modular gas processing skids, and supporting the project’s selected FEED contractor in developing the plant design.

HGC is a special purpose company, owned by Raban Al Safina for Energy Projects (RASEP), that was established to deliver a new gas processing plant to serve the onshore Bin Umar field. In late 2023, the Iraq Ministry of Oil (MOO) awarded a build-own-operate-transfer (BOOT) contract to HGC. The field produces 40,000 of barrels per day and over 150 million of standard cubic feet per day of associated sour gas, currently flared or used (untreated) as a fuel gas for a nearby power plant. HGC’s Bin Umar gas plant will convert waste gas into treated dry gas, Liquefied Petroleum Gas (LPG) and condensate for domestic use and export. 

Through the deployment of Baker Hughes’ portfolio of emissions abatement technologies, HGC will aim to reduce emissions and improve the efficiency of its gas processing plant by reutilizing the gas that would otherwise go to waste, supporting HGC and Iraq’s overall prioritization of gas projects to meet the country’s power needs and to curb flaring. 

The collaboration builds on Baker Hughes’ existing and successful work with Iraq’s state-owned South Gas company for the construction of modular gas processing plants at the Nasiriya and Gharraf oil fields in the Dhi Qar province to capture and treat gas that would otherwise be flared.

Source: Baker Hughes

Technip Energies has been awarded a FEED contract by Viridor for the CCS project in the UK

Technip Energies has been awarded a Front-End Engineering Design (FEED) contract by Viridor for the Carbon Capture and Storage (CCS) project at one of the United Kingdom’s largest Energy-from-Waste facilities in Runcorn, United Kingdom.

The project aims to capture around 900,000 tonnes of CO2 each year, half of which will be from biogenic sources, effectively removing 450,000 tonnes of COannually from the atmosphere.

As part of the FEED study, Technip Energies will deliver a comprehensive design utilising the Canopy by T.EN™ solution powered by Shell CANSOLV CO2 capture technology. The Canopy offering is part of Capture.Now™, Technip Energies’ strategic Carbon Capture, Utilization and Storage (CCUS) platform of technologies and solutions.

The Runcorn CCS project is in line to be one of the first facilities to receive funding under the UK Government’s Track 1 funding for carbon capture projects, also making it one of the first carbon capture projects on an Energy-from-Waste facility in the world. It marks a significant milestone in the waste sector’s contribution to carbon reduction efforts.

The plant will play a crucial role in the regional decarbonisation strategy by providing a stable long-term baseload CO2 supply to the HyNet industrial carbon capture cluster in North West England.

Christophe Malaurie, SVP Decarbonisation Solutions of Technip Energies, commented:

“With this award, Technip Energies confirms its growing leadership position as an integrated state-of-the-art CCUS solutions provider. Technip Energies’ involvement in Viridor’s Runcorn carbon capture project highlights our commitment to providing innovative solutions for the net-zero trajectory, leveraging our extensive experience in project design and execution along with Shell’s proven and industry leading CANSOLV® technology. By capturing 900,000 tonnes of CO2 each year, this first-of-a-kind project is a significant step in the waste sector towards reducing carbon emissions at scale. We are focused on delivering our carbon capture solution efficiently, contributing to the United Kingdom net-zero goal.”

James Eyton, Head of CCUS at Viridor, adds:

“We’re delighted to have selected Technip Energies to perform the Front-End Engineering Design study for our game-changing Carbon Capture Project in Runcorn. Their selection follows a highly competitive tender process. It was essential for us to find a partner who shares in our vision for decarbonised waste treatment and has the experience and expertise to work alongside us to develop the world’s largest carbon capture project for energy from waste. With deliverability of the project a crucial goal, the global well-proven Shell CANSOLV® CO2 capture technology has the potential to deliver over 95% CO2 capture rates, which are needed to remove over 900,000 tonnes of COannually at our Runcorn site. We’re excited to work together to unlock the pathway to Net Zero, and beyond into negative emissions, for our business, the wider industry and the communities in which we operate.”

Source: Technip Energies

ADES Grabs Contract for Jack-Up Rig Operations in Qatar worth SAR 350 Million

ADES Holding Company, a world leading oil and gas drilling services provider, has announced that it has received a Letter of Award (LOA) from one of the major International Oil Companies (IOCs) for a one-year firm jack-up drilling contract in Qatar with optional extensions of up to 18 months. The new award follows ADES’ earlier announcement of an imminent opportunity in the region and solidifies ADES’ position in the important Qatari market, reinforcing its regional expansion strategy.

Key Highlights of the Award

• The contract comprises a firm one-year term plus three optional six-month extensions.

• Operations are expected to commence in the second half of 2024 utilizing one of ADES’ jack-up drilling units.

• The award by this major IOC will maintain ADES’ market share in Qatar with a three-rig operation after the planned relocation of its Emerald Driller to Indonesia, which is expected to happen in second half of 2024.

• The total contract value from the firm and optional terms is approximately SAR 350 million.

Commenting on the LOA, Dr. Mohamed Farouk, CEO of ADES Holding said: “We are very pleased with our ability to quickly market and secure new campaigns for the five recently suspended rigs in KSA. New capacities made available have allowed us to quickly find a technically suitable unit to maintain our three-rig presence in Qatar following the planned departure of our jackup rig, Emerald Driller, from Qatar to Indonesia in the second half of 2024. The Emerald Driller had delivered an exceptional safety and operational performance during its operation in the Al-Khaleej field over the past few years, and we look forward to continuing our journey in Qatar with our client and to providing exceptional safety and operational performance that has become synonymous with the ADES name.”

Source: ADES

Saipem receives authorization to proceed with the execution of the Whiptail project in Guyana

Saipem has announced that it has received from ExxonMobil Guyana Limited and its Stabroek block coventurers the authorization to proceed with the execution of the Whiptail oilfield development project, situated in the offshore Guyana, at a water depth of approximately 2,000 meters. The authorization has been granted subsequent to the final project sanction by the client and its coventurers and to the necessary regulatory clearances. 

Saipem’s scope of work entails the detailed Engineering, Procurement, Construction, and Installation (EPCI) of a subsea production facility. The contract value is between 750 million and 1.5 billion USD. 

As previously announced, Saipem had already started initial activities, namely the detailed engineering and procurement of the long lead items, and following the issued authorization the company can proceed with the execution of the remaining project activities. 

Saipem’s vessels FDS2, Castorone and Constellation will be used for the offshore installation. Furthermore, for the on-site construction of part of the submarine items, Saipem will deploy its Guyana Offshore Construction Facility, located at the Port of Georgetown, and an additional local fabrication facility, proof of the company’s continued commitment to the sustainable growth in the country. 

Saipem had been previously awarded five additional contracts by ExxonMobil Guyana for projects in the same region: Liza Phase 1 and Phase 2, Payara, Yellowtail and UARU. 

Source: Saipem

TechnipFMC Awarded Large Subsea Contract for ExxonMobil Guyana’s Whiptail Project

TechnipFMC has been awarded a large contract in Guyana’s Stabroek Block by Exxon Mobil Corporation affiliate ExxonMobil Guyana Limited to supply subsea production systems for the Whiptail project.

TechnipFMC will provide project management, engineering, and manufacturing to deliver 48 subsea trees and associated tooling, as well as 12 manifolds and associated controls and tie-in equipment.

Jonathan Landes, President, Subsea at TechnipFMC, commented: “ExxonMobil Guyana will utilize our Subsea 2.0® systems and manifolds, which help provide schedule certainty. We have already delivered more than 100 subsea trees for ExxonMobil Guyana – the location of one of the world’s fastest developing basins – and we look forward to deepening our relationship with them through Whiptail.”

TechnipFMC currently employs nearly 140 Guyanese, and expects to continue to hire and train additional local staff in support of this award.

Whiptail is TechnipFMC’s most recent award from ExxonMobil Guyana, where the Company has been awarded subsea production system contracts since the first contract award in 2017 for Liza Phase 1.

Source: TechnipFMC

Wood to Expand Major Biopharmaceutical Manufacturing Plant in South Korea

Wood has been selected by leading biopharmaceutical firm, Celltrion, to expand its Songdo biopharma manufacturing hub in Incheon, South Korea.

Under this contract, Wood will provide detailed engineering design for a new facility that will increase manufacturing capacity of biological medicines by eight million liquid vials per year, helping meet global demand for biopharmaceutical drug products.

Supporting Celltrion to expand its product pipeline and secure manufacturing capacity, Wood’s leading process engineering design capabilities will help Celltrion enhance production efficiency and reduce downtime transitioning equipment from one product to another, resulting in facility operational cost savings.

Jim Goff, Senior Vice President of Life Sciences at Wood said: “Celltrion’s new facility will support secure, stable supply of life-changing medicines to help treat cancer, autoimmune diseases and neurological disorders.  We’re incredibly proud to be selected as the engineering partner of choice for such a globally significant project.

“We take pride in our strong, predictable project delivery held at the highest safety and quality standards. Our differentiated process design expertise brings the agility needed to help Celltrion achieve new efficiencies in production, time and costs. We are supporting their commitment to expand global access to innovative biologics products for a healthier world.”

The project will be delivered by Wood’s global Life Sciences experts in Europe and India and will conclude in Q3 2024, with commercial operation set to begin in 2027.

Source: Wood Plc

Wood secures contract with Atlantic LNG in Trinidad and Tobago

Wood’s joint venture company, Massy Wood, has secured a three-year agreement with Atlantic LNG Company of Trinidad and Tobago (Atlantic), to provide project management and engineering expertise for Atlantic’s liquefaction facility in Point Fortin, Trinidad.

Trinidad, the second largest LNG exporter in the Americas, hosts Atlantic LNG as Trinidad’s sole LNG producer, which exports approximately 15 million tonnes per annum. Under the contract, Massy Wood will work with Atlantic to drive operational efficiency and reliability of critical gas supply in the region.

Massy Wood has successfully delivered construction management across Atlantic’s liquefaction facility for the last decade, focusing on reducing risk and improving performance. This new award builds on existing services to deliver complete end-to-end EPC solutions.

Mala Baliraj, Massy Wood’s Chief Executive Officer, comments: “We are delighted to grow our relationship with Atlantic, building on the scope of services we already provide to this important natural gas facility.

“Massy Wood has been a trusted partner of choice for over 20 years in Trinidad. We are particularly proud of our delivery teams, who recently achieved over 43 million man-hours without a lost time incident, further demonstrating our unwavering commitment to safety and performance excellence.”

The contract will be delivered by Massy Wood’s team in Trinidad, supported by Wood’s LNG experts in Houston as well as Wood’s global decarbonisation and new energy teams.

Source: Woodplc

Worley has been awarded a Pre-FEED for Statkraft’s CO2 capture plant in Norway

Worley has been awarded a pre-FEED for the basic design of the CO2 capture plant in Norway.

Together with Mitsubishi Heavy Industries (MHI), Worley is one of the three suppliers that has been selected to proceed to an early phase study of the project. This is in connection with the work on realizing Statkraft’s CO2 capture facility in Trondheim, Norway.

Statkraft is currently evaluating its ongoing long term project with the possibility of maturing and later realizing full scale CO2 capture at its waste incineration plant in Trondheim by 2030.

Worley’s scope is to design an optimized carbon capture unit for the waste to energy facility to capture 300,000 tonnes CO2 per annum using the Advanced KM CDR Process™ proprietary CO2 capture technology that MHI has developed together with The Kansai Electric Power Co. Inc.

The pre-FEED will focus on environmental and safety aspects, design, and development of a robust cost estimate. Studies are planned for completion in the autumn of this year. Statkraft will then decide if they proceed to the next, and final, phase of the project before a potential investment decision is due in 2027.

The project will be led by the teams in Denmark with support from our offices in Sweden, Norway, and our Global Integrated Delivery team in India.

“This project presents an opportunity to leverage our specialized expertise within the Nordic region. And we can utilize our global talent pool and wealth of experience, to benefit both our team and our customers,” says Jan Narvestad, Senior Vice President, Nordics.

“This project will play an important part in realizing the potential for carbon capture as a decarbonization tool for the waste to energy industry. And furthers our existing partnerships with MHI in the carbon capture space,” says Graeme Wilson, Nordics Regional Director.

Source: Worley

Samsung C&T to build Korea’s first $103 mn hydrogen tank for power plant

Samsung C&T Corp., the construction and trading unit of South Korea’s Samsung Group, has clinched a 140 billion won ($103 million) deal to build an infrastructure for the country’s first coal and hydrogen compound-fueled power generation.

Under a contract signed with Korea Southern Power Co. (KOSPO), Samsung will build facilities to store, unload and transport hydrogen compounds at Korea Southern Power’s plant in Samcheok, Gangwon Province.

The project involves constructing a 30,000-ton tank for KOSPO to compress and store hydrogen compounds.

The so-called co-firing power generation refers to producing electricity by mixing and burning two or more fuel types.

Samsung said it is the sole contractor responsible for engineering, procurement and construction (EPC) for the project scheduled for completion in July 2027.

The company said it won the deal thanks to its experience building energy storage facilities in global markets, including Qatar, Singapore and Malaysia, and internationally certified technology it secured in collaboration with Whessoe Engineering Ltd., a UK-based energy storage facility construction specialist.


A major feature of the project, Samsung said, is that the storage tank will be completely sealed with a double-wall structure instead of the usual single wall to improve safety.

The storage tank will also be equipped with the highest level of gas detection and blocking system, and a real-time environmental substance monitoring system, it said.

Once the project is completed, carbon-free hydrogen compounds will account for 20% of KOSPO’s mixed fuel, contributing to greenhouse gas reductions at the power plant.

KOSPO expects to cut 1.1 million tons of greenhouse gases annually through the mixed power generation method at the plant.

“Based on our EPC performance secured through this project, we expect to participate in various renewable energy projects in Korea and abroad,” said Lee Byung-soo, vice president and head of energy solutions business at Samsung C&T.

Source: The Korea Economic Daily

Aker Solutions awarded an EPCIC Contract for the Brasse tieback project for OKEA

Aker Solutions has been awarded a sizeable EPCIC-contract for the Brasse tieback project for OKEA.

Brasse is an oil and gas field located 13 kilometers south of the Brage platform. Brasse will be developed as a subsea tieback to Brage and will utilize the existing processing capacity on the platform, where the first production started in 1993.

The tieback demands modifications on the Brage platform. The FEED has been carried out by Aker Solutions. Aker Solutions’ scope is to execute engineering, procurement, construction, installation and commissioning on Brage to prepare the topside of the platform for receiving oil and gas from the Brasse field.

“We are continuing to develop a long-term partnership with OKEA as a preferred supplier. Our experience of working as an integrator in projects alongside OKEA, OneSubsea and Subsea7 has shown that together, we are able to find feasible solutions to maximize the utilization of resources in mature areas in a profitable manner. The tieback will contribute to energy security in Europe.” said Paal Eikeseth, executive vice president and head of Aker Solutions’ Life Cycle segment.”

The plan for development and operation (PDO) will be submitted during April and Brasse will be renamed Bestla upon approval of the PDO. The name Bestla originates from Norse mythology and is the name of Odin’s mother.

Aker Solutions’ Project Management team and key resources will be mainly based in Stavanger and pre-fabrication will be done at Aker Solutions’ yard in Egersund. The contract will be booked as order intake in the second quarter of 2024 in the Life Cycle segment.

Source: Aker Solutions

thyssenkrupp Uhde & Genesis Fertilizers have signed a Pre-FEED contract for fertilizer plant in Canada

thyssenkrupp Uhde and Genesis Fertilizers Limited Partnership (“Genesis Fertilizers”) have signed a Pre-FEED (front-end engineering and design) contract to conceptually develop an integrated fertilizer complex to be located at Belle Plaine, Saskatchewan in Canada. The proposed plant will be designed to produce 1,500 mtpd of ammonia, 2,600 mtpd of urea/UAS granulation, nitric acid and UAN plus the ability to produce Diesel Exhaust Fluid (DEF).

thyssenkrupp Uhde will provide engineering solutions for the integration of the above-listed objectives as a component of this Pre-FEED arrangement, with a key focus on minimizing plant emissions. thyssenkrupp Uhde’s proven EnviNOx® technology, for example, will almost completely eliminate nitrogen oxides from nitric acid production. Furthermore, the design of the plant will consider the potential use of renewable-based hydrogen and electricity.

Jason Mann, President and CEO of Genesis Fertilizers: “Our primary goal is to ensure the supply of fertilizers to the farmers in Western Canada based on the most advanced technologies available with the lowest possible carbon footprint. We are pleased to be working with a strong industry partner that offers expertise in all the processes and technologies involved from a single source.”

Lucretia Löscher, COO thyssenkrupp Uhde: “This project is a further proof that the transition of the fertilizer industry towards more sustainability has started. Our expertise in clean fertilizer technologies and their integration is essential to support our customers on their journey to protect the climate.”

thyssenkrupp Uhde has more than 100 years of experience in the engineering and construction of chemical plants, with more than 2,500 built in total. 130 ammonia and fertilizer plants have been built, including some of the largest plants in the world. These often have set new industry standards, such as the uhde® dual pressure technology. In addition to the fertilizer business, thyssenkrupp Uhde also offers clean ammonia technologies and ammonia storage, which are relevant for the transition to clean energy and the use of ammonia as an energy and hydrogen carrier.

Source: thyssenkrupp Uhde

SLB to Acquire ChampionX in $7.75 billion Deal

SLB and ChampionX Corporation has announced a definitive agreement for SLB to purchase ChampionX in an all-stock transaction. The agreement was unanimously approved by the ChampionX board of directors.

Under the terms of the agreement, ChampionX shareholders will receive 0.735 shares of SLB common stock in exchange for each ChampionX share. At the closing of the transaction ChampionX shareholders will own approximately 9% of SLB’s outstanding shares of common stock.

SLB’s acquisition of ChampionX comes at an important time in the industry. The production phase of oil and gas operations typically comprises the majority of an asset’s life cycle from completion through decommissioning. This places a premium on service providers’ ability to help customers address challenges across the entirety of their production system. At the same time, there is growing demand to scale emerging technologies such as AI and autonomous operations across global operations.

“Our customers are seeking to maximize their assets while improving efficiency in the production and reservoir recovery phase of their operations,” Olivier Le Peuch, SLB’s chief executive officer, said. “This presents a significant opportunity for service providers who can partner with customers throughout the entire production lifecycle, offering integrated solutions and delivering differentiated value. The combination of ChampionX’s strong production-focused leadership throughout North America and beyond with our own international presence, unmatched technology portfolio, and history of innovation will drive tremendous value for our customers and stakeholders.

“Our core strategy remains centered on meeting growing energy demand while accelerating decarbonization and emissions reduction through innovation, scale and digitalization in our core oil and gas business. This acquisition will expand SLB’s presence in the less cyclical and growing production and recovery space that is closely aligned with our returns-focused, capital-light strategy,“ Le Peuch said.

“Today’s announcement marks the start of an exciting next chapter for ChampionX,” Soma Somasundaram, president and CEO of ChampionX, said. “We have been on a journey to build the best production-focused company in our sector, with a goal of unlocking energy through our differentiated products and technology as well as our strong financial engine. Becoming part of SLB will give us a much broader portfolio and the resources and reach to continue to lead the industry in providing energy to the world in an economically and environmentally sustainable way. Our companies share a vision for the future of energy that leverages technology and innovation to solve our customers’ most complex problems and better serve the communities in which we operate.

“As I look ahead, I am confident that our talented employees will benefit from greater opportunities as part of a larger organization. For our shareholders, the combination provides compelling value creation and the opportunity to share in significant upside from the realization of synergies, including accelerated growth opportunities given the complementary nature of the respective portfolios. I have long admired SLB’s focus on technology and innovation, as well as its global reach, and throughout our engagement with them, I have also been impressed with their commitment to preserving and capitalizing on all that has made ChampionX successful. Finally, I want to thank our employees for their continued commitment to our purpose of improving lives,” Somasundaram said.

SLB expects to realize annual pretax synergies of approximately $400 million within the first three years post-closing through revenue growth and cost savings. The transaction is subject to ChampionX shareholders’ approval, regulatory approvals and other customary closing conditions. It is anticipated that the closing of the transaction will occur before the end of 2024.

SLB also announced today that it will return $7 billion to shareholders over the next two years. SLB will increase its 2024 shareholder returns to a target of $3 billion as well as set a target for 2025 shareholder returns of $4 billion. “This commitment to our shareholders for 2024 and 2025 highlights our confidence in the value this transaction will create and in our ability to continue generating strong cash flow from our broader portfolio this year and next,” Le Peuch said.

Source: SLB

Aramco awards $7.7bn contracts for Fadhili Gas Plant expansion

Aramco has awarded engineering, procurement and construction (EPC) contracts worth $7.7 billion for a major expansion of its Fadhili Gas Plant in the Eastern Province of Saudi Arabia. The project is expected to increase the plant’s processing capacity from 2.5 to up to 4 billion standard cubic feet per day (bscfd).

This additional 1.5 bscfd of processing capacity is expected to contribute to the company’s strategy to raise gas production by more than 60% by 2030, compared to 2021 levels. The Fadhili Gas Plant expansion, which is expected to be completed by November 2027, is also expected to add an additional 2,300 metric tons per day to sulphur production.

Wail Al Jaafari, Aramco Executive Vice President of Technical Services, said: “The award of these contracts reflects Aramco’s goal to increase supplies of natural gas, help efforts to reduce greenhouse gas emissions, and free up more crude oil for value-added refining and export. Together with leading international companies, we are advancing our goal to increase gas production. The expansion also supports our ambitions to develop a lower-carbon hydrogen business, while associated liquids from gas are an important feedstock for the petrochemical industry.”

Aramco awarded EPC contracts for the Fadhili Gas Plant increment project to SAMSUNG Engineering Company, GS Engineering & Construction Corporation, and Nesma & Partners.

Source: Aramco

Petrofac secures EPC contract extension with ONEgas West

Petrofac has secured a contract extension in the Southern North Sea with ONEgas West (a NAM operated and Shell UK owned venture).  

The two-year brownfield Engineering, Procurement and Construction (EPC) contract award extends the previous three-year contract. Petrofac will continue to provide services across ONEgas West’s Southern North Sea portfolio, supporting the Clipper South complex, Leman Alpha assets, Bacton Terminal, and ONEgas Barge campaigns. 

Nick Shorten, Chief Operating Officer of Petrofac’s Asset Solutions business, commented:

“We are delighted to continue to be a partner of choice, in one of our core markets. This contract award demonstrates ONEgas’ continued confidence in the value our teams in Great Yarmouth and Aberdeen add to its operations.”

Source: Petrofac

KBR Awarded Predictive Maintenance Services Contract by Petro Rabigh

KBR, Inc. announced that it has secured a five-year asset condition monitoring program contract from Rabigh Refining Petrochemical Company (Petro Rabigh) to deploy predictive maintenance services at its plant in Rabigh, Saudi Arabia.

The program will optimize asset lifecycle, enhance machinery performance and improve overall reliability. This collaboration aims to boost energy and equipment efficiency while mitigating operational risks, aligning with Petro Rabigh’s commitment to safety and sustainability.

“We are pleased to build a longstanding partnership with Petro Rabigh and offer our innovative technology-led industrial solutions,” said Jay Ibrahim, President, KBR Sustainable Technology Solutions. “KBR’s predictive maintenance services improve operational efficiency and align with the clients’ ESG objectives by promoting sustainability and responsible resource management.” 

KBR delivers smart asset management solutions to help its customers optimize operations, maintenance and revamps to achieve sustainable world-class performance.

Source: KBR