Adnoc awards Dh1.8bn EPC contract to upgrade Bab onshore field

Abu Dhabi National Oil Company(ADNOC) awarded a Dh1.8 billion contract to upgrade capacity at its giant onshore Bab field, which produces the emirate’s flagship Murban crude.

A subsidiary, Adnoc Onshore, granted 39-month engineering, procurement, and construction contract to Greek company Archirodon Construction Overseas to maintain long-term crude production capacity at the field at 485,000 barrels per day.

The Bab field already plays an important role in supporting Adnoc’s production capacity mandates and this upgrade complements Adnoc’s upstream growth plans,” said Adnoc Onshore chief executive, Yaser Al Mazrouei.

The UAE accounts for 4 per cent of global crude production, much of it sourced from fields owned and operated by Adnoc in Abu Dhabi. The national oil company is targeting increasing production capacity to 4 million barrels per day by 2020, from 3 million bpd at present. By 2030, the company sees output capacity hitting 5 million bpd. The UAE’s total output for September was 3.08 million bpd, according to secondary sources cited by Opec.

Adnoc is targeting raising production capacity on the Bab field to 450,000 bpd by 2020 from 420,000 bpd presently. Around Dh1.35bn is expected to flow back into the UAE as a result of the capacity addition, Adnoc said.

Source: https://www.adnoc.ae/

Petrofac secures US$120 million in Engineering & Production Services (EPS) awards

Petrofac announces awards and contract extensions with a combined value of more than US$120 million, delivering against the Group’s strategy to position Engineering & Production Services (“EPS”) for growth by diversifying into new markets and geographies.

The awards and contract extensions consist of the following:

  • EPS has secured its first small-scale Engineering, Procurement, Construction (EPC) contract in Malaysia. In consortium with partner Serba Dinamik, EPS has been awarded a contract by Asean Bintulu Fertiliser (ABF) Sdn Bhd, one of Malaysia’s largest fertiliser plants, for its Third Boiler Project. The ABF plant located in the central region of Sarawak, which started commercial production in 1985, is a subsidiary of PETRONAS Chemicals Group Berhad. The work scope for the 30-month project includes basic and detailed engineering, procurement, construction and commissioning of an additional package boiler (165 tonnes per hour) to improve overall plant reliability and availability and meet total steam demands of 510 tph.
  • EPS has also secured a new three-year Engineering, Procurement, Construction and Commissioning (EPCC) Framework Agreement (FA) with a North Sea operator. Future projects undertaken through the FA will be supported by Petrofac’s Aberdeen office, where the company is actively growing its engineering team and investing in its brownfield management system in support of its digitalisation strategy.
  • The new brownfield projects awards coincide with key North Sea contract extensions for EPS, including a two-year renewal of an existing seven-asset Operations and Maintenance contract, and the extension of EPS’ existing Engineering Services contract with Chevron North Sea to June 2020.

Source: www.petrofac.com

Sinopec to launch $5.7 billion South China refinery in second quarter 2020

China’s Sinopec Corp is set to launch a new $5.7 billion refining and petrochemical complex in the south of the country in second-quarter 2020 using crude oil from Kuwait as a key feedstock, industry officials with knowledge of the matter said.

The project being developed by Asia’s top refiner, a 200,000 barrels-per-day (bpd) plant in Zhanjiang, a coastal city in Guangdong province, will become the third greenfield refinery-petrochemical complex to be built in China within a space of two years.

Zhanjiang is Sinopec’s first major capacity addition since it launched a similar-sized Qingdao refinery on the east coast in 2009.

But the 40 billion yuan ($5.69 billion) complex comes on the heels of two privately invested mega-refineries – Hengli Petrochemical and Zhejiang Petrochemical Corp – that have piled fresh capacity into an already oversupplied domestic fuel market, where transportation fuel demand has slowed while China’s fuel exports have soared.

Sinopec is seeking to finalise a crude oil supply deal with Kuwait Petroleum Company (KPC) that will help boost Kuwait’s oil sales to China to a record of nearly 600,000 bpd next year, the sources said. They declined to be identified because they were not authorized to talk to the media.

Source: https://www.reuters.com/

Saipem awarded a subsea contract in Guyana and variation orders on ongoing offshore E&C contracts worth 880 million USD

Saipem has been awarded a subsea contract by ExxonMobil subsidiary Esso Exploration and Production Guyana Limited (“EEPGL”) for the proposed Payara development project located in the Stabroek block offshore Guyana at a water depth of around 2000 metres. The contract scope includes Subsea Structures, Risers and Flowlines.

Saipem was awarded earlier subsea contracts for the first two phases of the Liza development in Guyana by EEPGL in 2017 and in 2018, respectively.

Subject to government approvals, project sanction by EEPGL and its partners HESS Guyana Exploration Ltd and CNOOC Nexen Petroleum Guyana Ltd and an authorization to proceed with the final phase, Saipem will perform the detailed Engineering, Procurement, Construction and Installation (EPCI) of a large subsea production facility. This facility will include approximately 130 km of flowlines, rigid risers, associated terminations and jumpers together with the installation of manifolds, flexible risers, dynamic and static umbilicals and flying leads. Testing and pre-commissioning of the subsea field will follow installation.

Source: www.saipem.com

Rosneft and Pertamina JV signed a contract with Tecnicas Reunidas to carry out the FEED project for Tuban Refinery, Indonesia

PT Pertamina Rosneft Pengolahan dan Petrokimia, joint venture of PJSC Rosneft Oil Company and Indonesian state oil and gas company Pertamina, signed a contract with Spanish Tecnicas Reunidas SA to carry out the Basic Engineering Design (BED) and the Front-End Engineering Design (FEED) project for the construction of oil refinery and petrochemical complex in Tuban (East Java, Indonesia).

PT Pertamina Rosneft Pengolahan dan Petrokimia joint venture was established according to the agreement signed in October 2016. Rosneft owns a 45% stake, Pertamina – 55%.

The favourable market environment and the consumption growth prospects in Indonesia allowed the joint working group of Rosneft and Pertamina to develop a competitive conception of refinery/petrochemical complex. The plant is expected to become one of the most high-tech in the world (Nelson’s complexity index 13.1). Design capacity of primary processing is planned at the level of up to 15 mmta, of the petrochemical complex – more than 1 mmta for ethylene and 1.3 mmta for aromatic hydrocarbons.

The project will receive the full support of the Indonesian authorities, both in terms of the necessary benefits and the provision of the infrastructure. Commissioning of the refinery/petrochemical complex is planned for the next 5 years. Due to the implementation of the project, a large new petrochemical cluster in the region of the city of Tuban can be created in the future.

The project is a significant element of Rosneft’s strategy to strengthen its presence in the high-margin market for petroleum-based products in the Asia-Pacific Region. The construction of the plant will strengthen the Company’s position in the Indonesian consumer market and confirm its status as a reliable partner in oil and gas production and refining projects in the region.

Source: https://www.rosneft.com/


China Petroleum Pipeline Engineering picks Galfar for Ras Markaz $16.4m contract

Omani construction contractor Galfar Engineering & Contracting said it had been awarded a civil and concrete works contract for Phase 1 of Ras Markaz Crude Oil Park by China Petroleum Pipeline Engineering Company. 

The contractor told Muscat Securities Market, where it is listed, that the contract was valued at $16.4m (OMR6.3m) and would be completed in 12 months. 

Undersigned by chief executive officer, Dr Hans Erlings, Galfar’s statement said the company expected “reasonable income” from the contract. 

Source: www.galfar.com

McDermott’s Lummus Technology Awarded Petrochemicals Contract in China

McDermott International, Inc. announced that it has been awarded a sizeable technology contract by Formosa Chemicals Industries Ningbo Limited for the technology license and basic engineering services for a grassroots alpha-methylstyrene (AMS) recovery unit in Ningbo, China. This 10,000 MTA unit will utilize AMS technology jointly licensed by Versalis and McDermott’s Lummus Technology to recover specialty chemicals for niche market sale.

“This award represents the first license of this AMS technology,” said Leon de Bruyn, Senior Vice President of McDermott’s Lummus Technology business. “The commercialization of this technology illustrates the effectiveness of our continuous innovation process. Lummus works to provide our customers market-leading solutions to enhance their competitiveness; the addition of the AMS recovery unit will enable Formosa to recover this specialty chemical with unmatched purity, ultimately enhancing the operating margins while lessening the environmental footprint.”

The award strengthens the ongoing collaboration, dating back to 1995, between the Formosa organization and Lummus Technology. This technology incorporates many decades of operating and design experience by Versalis with Lummus design expertise.

McDermott’s Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,400 patents and patent applications, Lummus Technology provides one of the industry’s most diversified technology portfolios to the hydrocarbon processing sector. Versalis (the chemical company of Italian energy major Eni) and Lummus have a long-standing collaboration to develop and offer a variety of petrochemical process licenses.

Source: https://www.mcdermott.com/

Saipem wins $145m contracts from BP for Azerbaijan field

Saipem, along with its consortium partners Boshelf and STAR GULF FZCO, has won three new contracts valued at $145m from BP towards the development of the Azeri-Chirag-Gunashli (ACG) oil and gas (ACG) field.

The field is located in the Caspian Sea and is approximately 120km off the coast of Azerbaijan. It stretches across an area of more than 4,000km2. Saipem has been a key contractor in ACG field since the 1990s.

ACG is a complex comprising six production platforms namely Chirag 1, Central Azeri, West Azeri, East Azeri, Deepwater Gunashli, West Chirag. It also consists of two process, gas compression, water injection and utilities (PCWU) platforms, equipped with advanced technologies.

Among the three contracts, BP has awarded two contracts for pipeline design, pipelay and associated activities. The other one is for transportation and installation of four jacket pin piles, subsea structure as well as spools.

Saipem said in a statement: “Saipem has obtained one of these contracts as a result of the FEED phase awarded by BP to Saipem’s XSIGHT Division, in consortium with local partners Bos Shelf and Star Gulf, which were engaged from an early stage and on a fast track basis.”

“This excellent result has been achieved thanks above all to collaboration between Saipem’s XSIGHT and Offshore E&C Divisions, a synergy that will be maintained to ensure continuity and efficiency to the execution of the EPCI project.”

Source: https://www.saipem.com/