Petrofac and Daelim win refinery improvement contract worth $2.1bn
Petrofac and Daelim Industrial have secured a 36 month engineering, procurement and construction contract from Oman Oil Refineries and Petroleum Industries (ORPIC) which is valued about $2.1bn. As part of the contract, both the companies, in a 50/50 joint venture, will provide engineering, procurement, construction, start-up and commissioning services to the refinery, situated in the Sohar industrial area, 230km North West of Muscat.
Energy Business Review, 27 November 2013, http://tinyurl.com/q5xm7wo
Petrobras signs agreement to start refinery construction
Petrobras has signed the Premium II Refinery indigenous agreement in Fortaleza (CE), as part of licensing process to start construction work on the refinery. The agreement was signed by Petrobras, the state government of Cearà, the National Indian Foundation, the Federal Prosecutor, the Brazilian Superintendent for Heritage and Indigenous Communities and will create the Taba Anacés Indian reserve.
Energy Business Review, 27 November 2013,http://tinyurl.com/qb6fqp7
Technip secures service contract for GTL plant in US
France-based Technip has secured the front-end engineering design (FEED) contract from Sasol for a gas-to-liquids (GTL) plant in Louisiana, US. The latest deal falls under the existing Front End Loading (FEL) alliance between Technip and Sasol in the GTL domain. Technip will monitor the operations of the project from its operating centre in Rome, Italy, while the new facility will have a capacity to produce around 96,000 barrels per day.
Energy Business Review, 27 November 2013, http://tinyurl.com/pyl5j2b
Plating solution for offshore repair
Following damage by a lighting strike, selective plating technology helped return an Ensco offshore drilling rig to operation and avoided costly unplanned downtime. SIFCO Applied Surface Concepts worked with oilfield products and services company National Oilwell Varco to repair critical damage to the Ensco 8505 drilling rig in the Gulf of Mexico within 24 hours of arrival on site. The lightning caused a substantial gouge on the crown mounted compensator cylinder which applies a constant tension to the drill string and compensates for any rig movement. To remove the damaged CMC cylinder from the platform and replace it would be extremely costly. SIFCO's plating process provided the solution, using SIFCO's AeroNikl 7280 for corrosion protection, and Cobalt 2043 to cap the repair for hardness to protect against surface wear. The SIFCO process involves a portable method of electroplating localised areas without the use of an immersion tank.
www.engineeringcapacity.com. 11 Nov. 2013.
New FPSO for Petrobras
Japanese offshore contractor Modec has signed an agreement to build a floating, production, storage and offloading vessel and charter it to Brazilian state oil company Petrobras for 20 years. The contract entails building a drilling and storage platform capable of producing 100,000 barrels of oil a day and storing about 1.6M barrels of oil. After delivering the vessel in 2016, Modec will be responsible for operating and maintaining the structure. The vessel will be used for the BM-S-9 block (Carioca Area) in the 'pre-salt' region of the Santos Basin off Brazil.
www.shipandoffshore.net. 11 Nov. 2013. http://tinyurl.com/l98amn7
McDermott's unit bags $200M EPCI deal for work in the Arabian Gulf
Reddit McDermott International has announced that one of its subsidiaries has been awarded an Engineering, Procurement, Construction and Installation project for a customer in the Arabian Gulf. The value is approximately $200M and will be included in McDermott’s fourth quarter 2013 backlog. The contract includes the fabrication, transportation and installation of offshore facilities including two production deck modules and ten observation platforms. The scope also includes works for two subsea pipeline installations, three submarine power cables and two fibre optic cables.
Keppel, NUS set up $60M offshore technology laboratory
Reddit Keppel Corporation and the National University of Singapore have announced the setting up of the Keppel-NUS Corporate Laboratory, in collaboration with the National Research Foundation, Prime Minister's Office, Singapore. The laboratory, which will be based at the NUS Faculty of Engineering, will be established with an investment amount of $60M. The Laboratory will create a synergistic industry-university partnership to pursue three main research thrusts which are centred on Future Systems, Future Yards and Future Resources to meet the future challenges of the offshore industry. Its vision is to be a global technology centre of excellence in the pursuit of resources in a safe and responsible manner from harsh environments and ocean beds, preserving and sustaining our environment. Its mission is to undertake research and development through Keppel's core competencies and NUS' research expertise for solutions to Deepwater, Arctic and other fields.
Sinopec oil pipeline blast kills 35 in eastern China
An explosion in a Sinopec oil pipeline killed 35 people in Qingdao in eastern China on November 22, causing a blaze that took several hours to bring under control and halting operations at a major oil port. Qingdao is one of China's largest crude oil import terminals, supplying at least two major Sinopec refineries - the Qingdao plant and Sinopec Qilu Petrochemical Corporation - as well as many small, independent refineries. Sinopec confirmed on its microblog that the explosion was caused by a leak in the Huangwei crude oil pipeline. Early investigations showed the spilled oil flowed into the municipal grid, which caused the explosion. The oil spill had also spread across 3,000 square metres of sea water.
Russia's Transneft to start new pipeline construction to feed ESPO
Reports that Transneft plans to start construction of a route to feed new crude into the East Siberia-Pacific Ocean pipeline around the end of this year. The Kuyumba-Taishet pipeline will deliver up to 15M tonnes of oil a year (300,000 barrels per day) to ESPO by 2017 and is essential for Russia to honour its increasing oil deals with Asian buyers. The pipeline will link the Kuyumbinskoye and Yurubcheno-Tokhomskoye fields with ESPO. Yurubcheno-Tokhomskoye, operated by Rosneft, is due to start production in 2016, with peak production originally envisaged at 200,000 bpd. Kuyumbinskoe, a joint venture between Rosneft and Gazprom Neft, is due to come on stream in 2017 with production of 6,000 bpd, rising to 217,000 bpd in 2029.
Technip wins GTL FEED gig from Sasol
South Africa's Sasol has engaged Technip of France to perform front-end engineering design work for a gas-to-liquids project in the US state of Louisiana. The award follows an earlier announcement that Technip had won a FEED contract for an ethylene cracker in Lake Charles, Louisiana, that will be part of the 96,000-barrel-per-day GTL facility. The contract falls within an existing Front-End Loading alliance for GTL between Technip and Sasol. Sasol has said the Lake Charles plant could cost between $16bn and $21bn to build. The company expects to make a final investment decision by next year.
Orpic lets contract for Omani refinery expansion
Orpic of Oman has awarded oil and gas services providers Petrofac and Daelim Industrial a construction-related contract for the improvement of its 116,000-b/d Sohar refinery about 230 km northwest of the Omani capital of Muscat. Petrofac and Daelim will share the 36-month engineering, procurement, and construction contract, which is valued at $2.1bn, in a 50-50 joint venture. The scope of work under the contract will also include start-up and commissioning services at the refinery, as well as improvements of the existing plant and the addition of new refining units. Orpic expects the current revamp will increase the Sohar refinery’s capacity by more than 70%. (Item contains no further information.)
Oil&Gas Journal online, 25 Nov. 2013. http://tinyurl.com/nxt7q6p
MHI-MME receives orders from HHI for Ultra Steam Turbine plants for four (4) LNGC for PETRONAS of Malaysia
Mitsubishi Heavy Industries Marine Machinery & Engine has received orders from Hyundai Heavy Industries for four Ultra Steam Turbine plants to be installed in four liquefied natural gas carriers HHI is to construct for Petroliam Nasional Berhad (PETRONAS), the state-owned oil and gas provider in Malaysia. The four UST plants on order consist of four marine turbines and eight boilers. The technology incorporated into the UST was developed by MHI independently. The adoption of a reheating cycle, a field in which the company has a strong track record in onshore commercial power generation plants, results in a near 15% improvement in fuel efficiency compared to conventional steam propulsion plants, making MHI USTs more economical and environmentally compatible.
South Stream comes to Serbia
Serbia has recently hosted the ceremony of welding the first joint of the Serbian section of the South Stream gas pipeline. The gas pipeline construction in Serbia will add considerable momentum to the development of the whole gas transmission system, turning the country into a large gas transit and storage centre of the European significance. South Stream will boost integration and economic processes in the region, attracting over Euros 1.5bn of direct investments to Serbia and creating more than 2.5 thousand jobs for the construction period. Hungary is next in line for the South Stream construction to begin.
Tata Steel announce major contract with KOGAS for pipe supply
Tata Steel, Europe's second largest steel producer, has announced a multi-million pound contract with KOGAS (Korea Gas Corporation) for the manufacture and supply of pipe in the Middle East. The deal, between KOGAS and Tata Steel’s Energy and Power division has seen the company manufacture 110km of line pipe and coatings for the Kirkuk to Baiji Dry Gas Project in Iraq. A total of c.10,000 tonnes of line pipe was manufactured and coated at the company’s 42 inch Mill in Hartlepool and has now been shipped to Iraq for installation. The pipe, which measures 16 inches in diameter, is designed and manufactured specifically for the transportation of dry gas.
India’s NRL plans to construct 1,338 km crude oil pipeline
India’s Numaligarh Refinery Limited is planning to construct a 1,338 km crude oil pipeline from Dhamra port in Odisha to its oil refinery in Assam. The company is currently conducting a feasibility study of the project and aims to begin construction in 2014. NRL also has plans to expand its oil refining capacity to 9 million metric tonnes per annum from 3 mmtpa at present. The expansion of its facility in north-east India is scheduled for 2017. NRL along with Bharat Petroleum Corporation Limited has signed a memorandum of understanding with Dhamra Port Company Limited to conduct a techno-commercial feasibility study for NRL to construct 6 mmtpa bulk crude oil import facilities and BPCL 1 mmtpa bulk LPG import facilities.
Gazprom starts design for Russian LNG project
Gazprom is developing the design documentation for its upcoming Vladivostok-LNG project as it seeks to speed up new liquefied natural gas projects that will help increase its foothold in the global gas market. Under the project, an LNG plant with an annual capacity of no less than 15M tons per annum will be constructed. The first train will be commissioned in 2018 and the second in 2020, with each train having a capacity of 5 mtpa. The plant may undergo further expansion in the future. The LNG plant will be built near Vladivostok, Primorye Territory. Gas supplies will come from the Sakhalin projects as well as the Yakutia and Irkutsk gas production centres. The project is of great importance for boosting Russian gas supplies to the Asia-Pacific markets, including Japan.
Petrofac will not be buying US engineer
Petrofac is out of the running to buy Foster Wheeler. Petrofac is understood to have shown interest in Foster Wheeler's $2bn engineering arm but the deal will not progress because the company does not want to be broken up.
The Daily Telegraph, 2nd December 2013, p.B3
PTTEP, Pertamina to jointly acquire Hess' Indonesian assets for $1.3B
Thailand's PTT Exploration and Production Public Company has announced that its subsidiary PTTEP Netherlands Holding Cooperative and Indonesia's state-owned firm PT Pertamina's unit Pertamina Hulu Energy have jointly signed Share Purchase Agreements to acquire, on a basis of 50:50, the subsidiaries of Hess Corporation which hold 75% interest in the Pangkah project and 23% interest in the Natuna Sea A project, in offshore Indonesia. The Pangkah project, located in the East Java Sea, currently produces approximately 7,000 barrels per day of liquids and 33 million cubic feet per day of gas, with total proved and probable reserves of 110 million barrels of oil equivalent The total transaction cost for both projects is approximately $1.3bn, which will be split evenly between PTTEP and Pertamina, with the former funding its share of the transactions through the firm's available cash.
TransCanada shuts Alberta gas pipeline after rupture
Reports that Canada's National Energy Board is investigating a pipeline rupture and natural gas leak on TransCanada Corporation's Nova system near Boyle, Alberta. This is the second recent rupture on the Nova system. In October TransCanada cut gas deliveries to oil sands projects after a line break reduced gas supplies. The regulator said that the size of the leak had not yet been determined but there was no immediate safety concern for the public.
Rigzone, 28 Nov. 2013. http://tinyurl.com/o2eq4a4
CB&I bags $1bn EPC gig for ethane cracker
CB&I has been awarded a $1bn engineering, procurement and construction contract for a new ethane cracker planned to be built in Texas. The company will do the EPC work on the cracker and associated utilities. CB&I provided the technology licence and basic engineering for the ethylene technology and the front end engineering and design services. The ethylene plant, planned for construction in Ingleside, Texas, is being developed by Ingleside Ethylene, a joint venture between a unit of Occidental Petroleum and Mexichem of Mexico. The cracker, which will have the capacity to produce around 1.2bn pounds of ethylene per year, will use ethane produced from US shale plays as feedstock. Operators have scaled back on producing shale gas due to an oversupply of the fuel in the US market that has sent domestic prices tanking.
Bumi Armada nets Caspian Sea deals
Malaysian contractor Bumi Armada has been awarded three contracts to supply ice-class vessels to service offshore platforms at the Lukoil-operated Filanovsky field in Russia’s Caspian Sea. The contracts will run simultaneously for an initial period of 10 years and have an estimated total value of $262M. Each contract also has the possibility of extensions of up to a further 20 years. The extensions are estimated to be worth a total of $483M, if all options are fully exercised. The boats will provide services including delivery of cargo and personnel, salvage, search and rescue functions, firefighting operations, towing and tanker mooring operations.
Shell floats hull for world’s largest floating facility
Reports that the 488-metre-long-hull of Shell’s Prelude floating liquefied natural gas facility has been floated out of the dry dock at the Samsung Heavy Industries yard in Geoje, South Korea, where the facility is currently under construction. Once complete, Prelude FLNG will be the largest floating facility ever built. It will unlock new energy resources offshore and produce approximately 3.6M tonnes of liquefied natural gas per annum to meet growing demand. Prelude FLNG is the first deployment of Shell’s FLNG technology and will operate in a remote basin around 475 kilometres north-east of Broome, Western Australia for around 25 years. The facility will remain onsite during all weather events, having been designed to withstand a category 5 cyclone.