Global Projects
L&T Wins $232m PDO Gas Depletion Compression Project
Prominent Indian-based engineering and construction conglomerate Larsen and Toubro Limited (L&T) has won a contract valued at $232 million to execute Phase 2 of the Saih Rawl Depletion Compression (SRDC2) project on behalf of Petroleum Development Oman (PDO). The Engineering-Procurement-Construction (EPC) was won against fierce competition from nine international bidders, L&T stated in a filing to an Indian bourse.
The project is one of several initiatives launched by PDO, the country’s premier oil and gas exploration and production company, to sustain gas flows from reservoirs that have been in production for several years resulting in a drop in reservoir pressure. Production from the Saih Rawl (SR) Gas Fields, which are the largest in PDO’s concession, commenced in 1999. However due to declining reservoir pressure in Saih Rawl Main (SRM) Field, the Saih Rawl Main wells Flowing Tubing Pressure will continuously decline until it reaches 35 bar in the first quarter 2015.
In order to continue to produce on-spec gas through the Central Processing Plant (CPP) in first quarter 2015, second stage depletion compressors (SRDC2) are required to be installed upstream of the SRDC1. L&T has been chosen to execute this part of the project. The SRDC2 involves installation of 76 MW of gas compression capacity with 4 trains, and modification of the condensate handling system at CPR. This will enable the Saih Rawl Main field to produce Maximum Annual Daily Load (MADL) of 30 MMSCMD gas.
Phase 1 of the Saih Rawl Depletion Compression project was officially inaugurated by PDO in April this year. The depletion compression project managed to boost inlet pressure from 36 bar to 96 bar and the new plant has a capacity to handle 48 million standard cubic metres of gas per day. Beside the compression plant, a new power station with a total capacity of 120 megawatts was constructed as part of the project to cater for the increased power demand.
Gas and condensates from the Saih Rawl field are collected and processed at Saih Rawl Central Processing Plant where the depletion compression is located. The treated gas is then sent to key customers such as Oman Liquefied Natural Gas (OLNG), Qalhat LNG, Power stations and desalination units, Oman India Fertilizer Company, Sur Light Industrial Area and South Oman Gas Line via a pipeline known as the Interconnector.
Aramco Seeks Bids for Riyadh Refinery Project
Saudi Arabian Oil Co. invited bids for engineering, procurement and construction contracts for a clean fuel project valued at as much as $1 billion at its Riyadh refinery, MEED reported on its website. Saudi Aramco, as the world’s largest state-owned crude exporter is known, plans to cut air pollution by reducing sulphur content in the gasoline and diesel it produces, the magazine reported.
The closing date for bids is 20 October.
Among companies interested in the project are Technip SA (TEC), Samsung Engineering Co. Ltd., Petrofac Ltd (PFC), Tecnicas Reunidas SA (TRE), Hyundai Engineering & Construction Co. Ltd., GS Engineering & Construction Corp. (006360), Daelim Industrial Co. Ltd. and SK Engineering & Construction Company Ltd, MEED said.
Aramco also plans to carry out similar clean fuel projects at its Ras Tanura and Yanbu refineries.
SNC-Lavalin Awarded KAPSARC Project in Saudi Arabia
SNC-Lavalin is pleased to announce that it has been awarded a 10-year contract to operate and maintain the King Abdullah Petroleum Studies and Research Center (KAPSARC) project located in Riyadh , Kingdom of Saudi Arabia . The estimated value of this contract is $135 million.
With a mandate to conduct high-calibre research in energy economics, policy, technology, and the environment, the KAPSARC project consists of three major components: a 65,000 m2 research and office complex, a residential community that will accommodate approximately 1,000 residents, and a utility zone to serve them. This zone consists of a central utility plant with a 5-MW photovoltaic array, water storage tanks, a chilled water plant, a site operations and maintenance building, and transportation operations.
SNC-Lavalin will provide integrated facility and community management services to the project.
“We are delighted by the opportunity to be involved in such a state-of-the-art facility,” said Charlie Rate, Executive Vice-President, SNC-Lavalin Group Inc. “We continue to solidify our footprint in the Kingdom of Saudi Arabia , a key market for our business.”
KAPSARC received the first Leadership in Energy and Environmental Design (LEED) for Homes certification outside of North America , and it is the largest residential development project to earn the certification in the world.
Petrofac Wins Iraq Offshore Operations Contract
Petrofac, the international oil & gas service provider, has signed a contract worth approximately US$100 million to provide offshore operations and maintenance services for the Iraq Crude Oil Expansion Project. Awarded by Iraq ’s South Oil Company (SOC), the 12-month contract will commence following a three-month mobilization period. There is also additional scope for the contract to be extended via two one-year contract extension options.
Petrofac’s Offshore Projects & Operations (OPO) business secured the award following a competitive tender. OPO will now provide operations and maintenance services for the new oil export facilities situated approximately 60km offshore the Al Fao Peninsula in Southern Iraq . The facilities include: an offshore platform, metering station, single point moorings (SPMs), subsea pipelines and tanker operations.
Marwan Chedid, Chief Executive of Petrofac’s Engineering, Construction, Operations and Maintenance division, commented: “This is our first offshore operations contract in Iraq which broadens the scope of our growing operations within an important country for Petrofac.
“This is also the first time Petrofac has contracted directly with an Iraqi National Oil Company, and we are delighted to begin our working relationship with SOC, a new and important customer for our Group. We intend to deploy our capabilities together with our focus on delivery to enable SOC to operate its offshore facilities safely, while delivering increased crude export.”
Dyeyaa Jaafar Hyjam, Director General, Southern Oil Company, said: “Petrofac was selected for this contract in recognition of the Group’s capabilities and the good work it has undertaken within Iraq to date. Increasing the export of crude is a key driver for this important project and we are confident that Petrofac can help us deliver our targets and become a trusted partner for SOC over the long-term.”
Nine in Shortlist for Sohar Refinery Expansion EPC Contract
International engineering giants are among nine groups of bidders shortlisted for an estimated $1.2 billion contract to undertake the expansion of Oman ’s flagship refinery at Sohar.
In contention for the prestigious Engineering Procurement Construction (EPC) contract is a roster of engineering heavyweights that includes Technip, the French-based provider of project management, engineering, and construction services for the oil and gas industry; Tecnicas Reunidas (TR), a leading Spanish engineering firm specialising in the design and construction of industrial plants of all types; Korean construction conglomerate Hyundai Engineering; and the joint venture of Indian engineering giant Larsen & Toubro (L&T) and GS Engineering of South Korea.
Also in the fray is the partnership of Petrofac, the London-headquartered international provider of integrated facilities services to the hydrocarbon and petrochemical industries, and South Korean engineering and construction conglomerate Daelim. Fellow Korean engineering corporation Daewoo has teamed up with global petrochemicals firm Lurgi to bid for the contract.
Likewise, Japanese engineering corporation Chiyoda has joined hands with Seoul-based industrial contractor Samsung Engineering to compete for the EPC package. Also making the shortlist are Korean firm SK Engineering, and Japanese industrial contractor JGC. The expansion, estimated to cost in the range of $1.5-1.8 billion, is being overseen by Oman Oil Refineries and Petroleum Industries Company (Orpic), a wholly government-owned integrated refining and petrochemicals entity.
Orpic oversees the management of Oman ’s two refineries at Mina al Fahal and Sohar, as well as the aromatics and polypropylene plants at Sohar industrial port. The upgrade will add around 60,000 barrels per day (bpd) of new capacity to Sohar Refinery’s present processing capacity of around 116,000 bpd of crude and long residue. The Observer has learnt that the shortlisted bidders have been invited to a site visit slated for later this month. The site visit will also provide an opportunity for the bidders to have any technical queries about the EPC package answered by the client’s representatives. In addition to enhancements that will optimise the propylene and naphtha feedstock output for the polypropylene and aromatics plants, the expansion will also help meet the escalating demand for gasoline and diesel in the Sultanate.
Also envisaged is a Delayed Coker Unit (DCU) designed to minimise excess low value bitumen production and increase the production of high value products like LPG, naphtha and diesel. The upgrade will also help meet local bitumen market through the installation of a Bitumen Blowing unit (BBU). An additional MTBE Unit will be added to enhance gasoline output. A contract award is likely to be announced only by the middle of next year, with completion targeted during the first half of 2016.
NPCC-Technip JV Wins $817 mln Abu Dhabi Deal
Technip, in a consortium with National Petroleum Construction Company (NPCC), was awarded by Zakum Development Company (ZADCO) a lump sum engineering, procurement, fabrication, installation, commissioning and start-up contract for the Upper Zakum 750K Project in Abu Dhabi , United Arab Emirates . The field is located in the Gulf, 84 kilometers offshore Abu Dhabi . It is divided into four production artificial islands (Central, North, South, and West), with processing facilities at the Central Complex.
The scope of work covers:
- 240 kilometers of subsea pipelines ranging from 6” to 42”, - 128 kilometers of subsea composite and fiber-optic cables, - Almost 30,000 tons of offshore structures (jackets, riser platforms, flare towers and bridges), including approximately 3,000 tons of islands modules and bridges.
The contract also includes the complete initial production facilities for temporary wells hook up to serve initial production distributed amongst the North, South and Central islands.
Technip's operating center in Abu Dhabi will execute the overall engineering and participate in procurement, on-island works, cable installation and initial production. The project is scheduled to be completed in the third quarter of 2015.
This award reinforces Technip's continuous involvement in major offshore projects and its successful long-established association with NPCC in the UAE.
Técnicas Reunidas Selected for Chemical Project in SA
Sadara Chemical Company (Sadara), a joint venture between Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company (Dow), has awarded Técnicas Reunidas (TR) the Chem-III project, part of the chemical complex being built by Sadara in Jubail Industrial City II, Saudi Arabia .
The Sadara complex in Jubail is the world’s largest chemical complex ever built in a single phase. The project awarded to TR includes the ethylene oxide, propylene glycol, polyols, ethanol amines, ethylene amines, butyl glycol ether plants and the auxiliary and control facilities necessary for their operation. TR will perform detailed engineering, procurement and supply of the equipment and materials, construction of the plants and the support during commissioning of the units.
The plants are scheduled to be operational during 2015. The Contract awarded has an approximate value of US$ 800 million. The award of this contract reinforces the competitive position of TR as one of the few companies in the world qualified to work in fields as diverse as oil and gas production, power generation, oil refining and petrochemical industries
Saipem Wins New E&C Contract Worth Over USD 800 Million
Saipem SpA announced that it has been awarded a new E&C Onshore contract in Nigeria worth over USD 800 million. The lump sum turnkey contract has been awarded for the SSAGS (Southern Swamp Associated Gas Solution) project to be developed at sites located approximately 65 kilometers South-East of Warri, in the Delta State . The scope of work includes the engineering, procurement, construction and commissioning of compression facilities at the four sites of Ogbotobo, Beneside, Opukushi and Tunu, and of new gas Central Production facilities in Tunu, which will treat the routed associated gas. The project is expected to be completed in 32 months.
Technip Awarded Contract for KEMYA Project
Technip was awarded by the petrochemical company Al-Jubail Petrochemical Company (KEMYA) - a joint venture between SABIC and Exxon Chemical Arabia, an affiliate of ExxonMobil Chemical Company - a contract for the engineering, procurement and construction of an Halobuty facility, located in Al-Jubail , Saudi Arabia .
This project is part of the Saudi Elastomers Program undertaken by KEMYA to set up a world-scale specialty elastomers facility to serve local markets, the Middle East and Asia .
This new facility will produce 110,000 tons per year of rubber using ExxonMobil licensed technology. Technip’s operating center in Abu Dhabi , United Arab Emirates , will execute the contract.
Arturo Grimaldi, Senior Vice President of Technip Middle East Region stated: "We are glad to work on the implementation of this world-class facility, based on a state-of-art technology, in line with Saudi Arabia ’s strategic objectives. This contract reinforces Technip’s leading position in the petrochemical business and in Saudi Arabia , where we have been present for more than 30 years."
Aker Solutions Secures Contract with Perenco UK
Aker Solutions has secured a three year contract extension worth £18 million (GBP) to provide onshore and offshore operations and maintenance services to Perenco UK . The contract includes an option to supply one more drilling equipment package.
"We are very pleased to deliver our first complete topside drilling package to Hyundai Heavy Industries, and we look forward to further develop a successful partnership," says Thor Arne Haverstad, head of Aker Solutions' drilling technologies business.
Aker Solutions will handle all major aspects of the topside equipment delivery, from engineering support and procurement to installation and commissioning. The work will be executed in Aker Solutions' facilities in Kristiansand , Horten and Asker in Norway and Erkelenz , Germany . Installation and commissioning services will take place at the Hyundai Samho Heavy Industries yard in South Korea . Aker Solutions also offers training services in its upgraded facilities in South Korea .
Most of the equipment will be delivered in 2013 and the rig will be completed in the fourth quarter of 2014. Aker Solutions offers complete drilling equipment packages, including project management, engineering, procurement and commissioning. The company provides the full range of topside drilling equipment and systems, and worldwide customer support through a global drilling lifecycle services organisation.
McDermott Awarded Two Projects for Saudi Aramco
McDermott International, Inc. announced that one of its subsidiaries has been awarded two projects for Saudi Aramco in the Arabian Gulf in the Karan, Safaniya and Zuluf fields. The values of these contracts are included in McDermott's second quarter 2012 backlog.
The first project, Karan-45, comprises fabrication of a new wellhead platform, auxiliary platform, jacket and link bridge, with subsea installation of a 20-inch flowline and a 15kV composite power and fiber optic cable.
Project management, engineering and procurement will be undertaken at McDermott’s engineering office in Al-Khobar , Saudi Arabia . Fabrication will commence shortly at the company’s Jebel Ali facility in the United Arab Emirates and the offshore scope will be undertaken by vessels from McDermott’s global fleet. The project is scheduled for completion in the first quarter 2014.
“As we near completion of the 39 structures originally awarded under the Karan contract in March 2009, the experience gained has given us an in-depth knowledge of the specific field characteristics and project requirements,” said Steve Johnson, Chairman of the Board, President and Chief Executive Officer of McDermott. “By using consistent methodology and personnel across both projects, McDermott strives to provide an optimum solution to Saudi Aramco through which the Karan-45 project can be delivered safely and on time.”
The second project, issued under the existing Long-Term Agreement, includes the procurement of flexible flowlines and the fabrication, transportation and installation of pipelines and subsea tie-ins. Procurement and fabrication will be carried out at the company’s Jebel Ali facility and installation, using vessels from McDermott’s fleet, is scheduled for completion by the end of the first quarter of 2013.
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