Hi Gulf Regional Oil & Gas News.

Hi Gulf Regional Oil & Gas News.

1 Saipem Wins $4 Billion FPSO Contracts Offshore Angola Angola - FPSO Vessels & Equipment Saipem has been awarded two contracts in Angola by Total, for a combined total of more than $4 billion.  The main contract is worth more than $3 billion, and is an EPCI for the engineering, procurement, installation and commissioning of two converted turret-moored Floating Production Storage and Offloading units (FPSO) for the Kaombo Field Development Project, located in Block 32, offshore Angola. Saipem has also been awarded a seven-year contract of approximately $1 billion for operation and maintenance services of the two vessels.  The two converted FPSO units, owned by Total, will each have an oil treating capacity of 115,000 barrels per day, a water injection capacity of 200,000 barrels per day, a 100 million scfd gas compression capacity and a storage capacity of 1.7 million barrels of oil. The scope of work of the contract includes engineering, procurement, conversion of the tankers, fabrication and integration of the topsides of the FPSO units and the installation of the mooring systems, as well as the hook-up, commissioning and operations start-up. Saipem will provide seven years of operation and maintenance services for the FPSO units.  The Kaombo FPSO project will be managed by the Saipem Floaters Business Unit located in France. Part of the activities related to engineering, procurement, topsides modules fabrication and integration as well as commissioning onshore and offshore works will be carried out in Angola. The topsides fabrication activities will be undertaken in Saipem’s Karimun Island Yard, located in Indonesia. The tankers conversion and the topsides modules integration will be executed at a shipyard in the Far East. The first FPSO unit will be operational by the first quarter of 2017 and the second unit by the second quarter of the same year.  Commenting on the award, Umberto Vergine, Saipem CEO, said: "This contract is in line with Saipem’s strategy of pursuing growth opportunities in high complexity Floaters and FLNG construction in specific geographic areas, such as Asia Pacific and Africa, where the company can leverage its engineering capabilities, strong local content competencies and unique availability of fabrication yards."  2 Kentz Awarded a US$125m Contract in Kuwait by Fluor Kuwait - Consultancy Kentz Corporation Limited, the holding company of the Kentz engineering and construction group, is pleased to announce the award of a major five-year cost reimbursable contract by Fluor Kuwait Company, with an estimated value of US$125m. Under the terms of the contract, Kentz will supply multi-discipline technical and supervisory personnel on a reimbursable basis to meet Fluor's supplementary manpower requirements on Fluor's Consultancy Services in Project Management and Related Activities contract for Kuwait Oil Company. The reimbursable contract will be executed through Kentz's Engineering and Projects business unit. Tush Doshi, Group President, Engineering and Projects business unit for Kentz commented: "We are very pleased to have been awarded this major contract that once again demonstrates our ability to win repeat business with core clients. Our focus on client delivery continues to see long-term benefits for the Group and we are delighted to be continuing our long standing relationship with Fluor in Kuwait, a region where we have served the needs of capital projects since the early 1980s." 3 Baku Shipyard Wins $378m Vessel Contract from Shah Deniz Azerbaijan - Subsea Construction Vessel Baku Shipyard LLC has secured a contract worth US$378 million from BP Exploration (Shah Deniz) Ltd, the operator of the Shah Deniz gas field development, to design and build a Subsea Construction Vessel (SCV).  When completed, the SCV will be deployed for the Stage 2 development of the Shah Deniz field, which lies some 70 kilometres offshore in the Azerbaijan sector of the Caspian Sea.  The Shah Deniz Stage 2 project requires a subsea installation vessel to install the subsea structures over 11 years between 2017 and 2027. The vessel will include dynamic positioning to allow for work in 2.5 metres significant wave height (Hs), a 750 metric tonne-main crane for 600 metres-deep subsea operation, an 18-men two-bell diving system, two work-class remotely operated vehicles, a strengthened moon pool, two engine rooms with 6x4.4MW + 2x3.2MW engines and a deadweight of 5,000 metric tonnes at 6.5 metres draft. The SCV will be designed by Marine Technology Development, the ship design and development arm of Keppel Offshore & Marine (Keppel O&M). The vessel is expected to be completed in April 2017.  Mr Rovnag Abdullayev, President of State Oil Company of Azerbaijan Republic (SOCAR), said, "We are very privileged that BP Exploration (Shah Deniz) has chosen Baku Shipyard to design and build the SCV which will support the Shah Deniz gas field Stage 2 development. We believe that Baku Shipyard, under the management of leading global offshore and marine group Keppel O&M, is well placed to support Azerbaijan's growth in the oil and gas sector, and we look forward to building up our track record with more significant contract wins in the years ahead."  Mr Gordon Birrell, BP's Regional President for Azerbaijan, Georgia and Turkey, commented, "We are pleased to begin cooperation with yet another major local service company to advance the executional phase of the giant Shah Deniz Stage 2 development project. This new flagship vessel for the Caspian, to be built by Baku Shipyard, will provide essential support for the construction of the Stage 2 subsea structures which will form the biggest subsea production system in the Caspian. Clearly, the contract underpins our plans to deploy for the first time new advanced subsea production technology in the Caspian as part of the Shah Deniz Stage 2 development.  "I am also pleased to say that the contract we have signed today is among the 12 major contract awards for the Shah Deniz Stage 2 and South Caucasus Pipeline expansion projects which we have awarded since we announced the final investment decision lin December 2013. These contract awards are part of the overall tremendous progress being made across multiple areas of this major development project which underpin our efforts to deliver first gas in late 2018. The Shah Deniz partnership remains committed to maximising the use of local resources in delivering this important gas development project. It is a world-class project that can only be delivered through close cooperation among BP and Shah Deniz partners including SOCAR and Azerbaijan's local supply chain."  The SCV is the first major contract secured by Baku Shipyard since its inauguration by President of Azerbaijan, H.E. Ilham Aliyev, in September 2013. The shipbuilding yard was jointly developed by SOCAR, Azerbaijan Investment Company (AIC) and Keppel O&M. SOCAR, AIC and Keppel O&M own 65%, 25% and 10% share in the yard respectively.  The 62-ha yard is capable of undertaking the construction of a wide range of specialised vessels and merchant ships including subsea vessels, anchor handling tug/supply vessels and multi-purpose offshore support vessels such as platform supply vessels, as well as tankers and cargo vessels. The yard also has shiprepair and conversion capabilities. 4 Prysmian Awarded EURO 30m Contract for Zakum Field United Arab Emirates - Cables Prysmian Group, world leader in the energy and telecom cable systems industry, has been awarded a new contract worth approximately € 30 Million by UAE-based construction company Emirates Holding on behalf of major offshore oil and gas producer ADMA-OPCO (Abu Dhabi Marine Operating Company) for the design and manufacture of submarine cable links for the replacement of power feeding systems to Zakum offshore oil field, in Abu Dhabi. The Zakum oil field is the first submarine electrification project planned by ADMA-OPCO and will be the benchmark for future projects aimed at developing and implementing a power distribution and transmission network among owned offshore oil fields, in order to increase capacity and improve reliability of their oil production facilities. In detail, the project includes the design and supply of about 200 km of XLPE (Cross-Linked Polyethylene) insulated Medium Voltage submarine cables for the distribution of energy to oil towers and platforms, plus accessories and network components. The project will be implemented by the Group’s established offices in the UAE, using production from Pikkala (Finland) with first 70 km batch delivery in November 2014 and final delivery due by mid-2015. The Zakum project provides further confirmation of the validity of the Group’s know-how and technologies for application both in submarine power transmission and distribution and in the Oil and Gas industry. This new project also reconfirms Prysmian’s leadership role in a strategic region like the Middle East, where the Group can rely on a number of projects completed or currently ongoing including the Barzan oil field submarine power interconnection in Qatar, the first-ever submarine power transmission link serving Doha, the GCC Saudi-Bahrain submarine interconnection and the 400 kV power transmission system for TRANSCO connecting the Bahia and Saadiyat Grid Stations in Abu Dhabi. 5 Plexus Awarded Contract with New Customer Galp Energia Morocco - Surface Wellhead Equipment Services Plexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP® friction-grip method of wellhead engineering is pleased to announce that it has been awarded a contract with new customer Galp Energia Tarfya, B.V. ('Galp') to supply surface wellhead and mudline equipment services for an exploration well offshore Morocco. The value of the contract, which sees Plexus secure a new territory and further strengthens its position in North Africa, is estimated at approximately £600,000 with revenues expected to commence in April 2014.  Under the terms of the contract, Plexus will supply its 18-3/4" POS-GRIP surface wellhead and mudline systems for use on a standard pressure 6,000 PSI exploration well. Plexus CEO Ben Van Bilderbeek said, "Today's contract with Galp for an exploration well offshore Morocco demonstrates our core wellhead equipment and services rental business continues to win new orders with new customers and in new territories. Having proved our POS-GRIP wellhead equipment is best in class in terms of performance, safety and cost, and having established a dominant position supplying HP/HT wellhead equipment in the North Sea, we are successfully expanding our geographical reach into Asia and Africa. As stated in our recent interim results, approximately 50% of our first half sales were for wells in the Rest of the World compared to 28% the previous year. We are confident that the compelling combination of superior performance and cost savings that our equipment offers will see Plexus continue to build market share outside our North Sea stronghold." 6 Africa Oil Supply in April 2014 Africa - Oil Supply  Africa’s oil supply is estimated to average 2.42 mb/d in 2013, an increase of 0.11 mb/d from the previous year and unchanged from the previous MOMR. The current year’s supply is expected to grow by 0.10 mb/d to average 2.51 mb/d and remains unchanged from last month’s prediction. On a quarterly basis, Africa’s oil supply in 2014 is expected to average 2.52 mb/d, 2.51 mb/d, 2.51 mb/d and 2.51 mb/d, respectively.  According to preliminary production data in 1Q14, oil output from non-OPEC oil producers in Africa increased by 100 tb/d to average 2.52 mb/d compared with 4Q13. The production of Chad, Congo, Equatorial Guinea, Gabon, South Africa and Africa other are estimated at: 0.15 mb/d, 0.27 mb/d, 0.33 mb/d, 0.24 mb/d, 0.19 mb/d and 0.35 mb/d, respectively, whereas Egypt and the Sudans are more or less steady at 0.69 mb/d and 0.31 mb/d, respectively. 7 Simba Energy to Commence FTG Survey on Block 2A Kenya - FTG Survey Simba Energy Inct has signed an agreement with Bell Geospace to conduct a comprehensive airborne FTG (Full-Tensor Gradiometry) survey on Block 2A in Kenya. It is expected to start in early May and be completed approximately 30 days later.  The program contemplates flying 6,044 line kms over two target areas within Block 2A: ~2,150kms² over the central portion of the block covering the Company's earlier defined primary and secondary target areas SSE from the city of Wajir and within the southern extents of the Mandera basin, and ~850kms² along the block's southern boundary over the eastern margins of the Anza basin. It is expected that the resulting data from this FTG survey will serve to provide for a more focused and cost effective 2D seismic well location targeting program planned for later this year. The data from this FTG survey will also be combined with some additional 2D seismic data expected shortly from Taipan Resources who were recently granted permission to acquire limited 2D seismic on Block 2A. Once received, the Company will begin interpretation of the processed 2D seismic data along with the FTG data. "The Company has seen a significant increase in drilling activity adjacent to Block 2A and this has led to increased interest by potential farm-in partners to drill our Block 2A.", commented Robert Dinning, President & CEO. Located just to the northwest of Block 2A's northwest boundary, Africa Oil have already spudded an exploration well at the Sala prospect in Block 9 that should complete soon and could provide insight into the prospectivity for a "string of pearls" accumulation along the eastern margins of the Anza basin. There is also Taipan's Badada (formerly Pearl) prospect which is also along the Anza basin's eastern margin and lies on the southern boundary of Block 2A and will be drilled later in the year. In addition to this, in the southern part of Block 1, directly to the north of Block 2A, Afren has had exploration success having identified six leads and prospects with plans to spud a first well at their Khorof prospect later this year. The Company is currently in discussions with various Companies who have expressed interest in working with Simba by farming directly into Block 2A and conducting both the seismic program and in drilling the first wells under the terms of a farm-in agreement.  Block 2A's concession area overlies the southern extents of both the Anza basin, one of the largest Tertiary-age rift basins in the East African rift system and with a geological setting similar to the South Lokichar basin where Africa Oil and Tullow have recently had significant discoveries; as well as the Mandera basin where the Tarbaj-1 well and nearby oil seeps in the south of Block 1 have already confirmed the presence of hydrocarbons within Upper Triassic and Jurassic formations. 8 Gazprom Neft's Moscow Refinery to Build Biological Waste Treatment Plant Russia - Water Treating Gazprom Neft’s Moscow Refinery has selected a final wastewater treatment process to be employed in the construction of the second phase of the production site’s underground wastewater treatment plant. The selected biological treatment method, unique in the Russian oil refining industry, will remove 99% of pollutants from wastewater and reduce the site’s water consumption by a factor of 2.5.  The use of a membrane biological reactor makes this method more efficient in comparison with conventional, chemical-based treatment methods, and enables almost total purification of wastewater through the use of activated sludge which absorbs organic matter, nitrogen, and other petroleum products. The use of a multi-stage treatment system will enable up to 75% of the water to be returned to the production cycle and will reduce the load on the wastewater treatment plant by a factor of three.  Under the plan, the second phase of the treatment plant will be commissioned in 2016. The biological wastewater treatment plant will form part of a single facility together with the underground mechanical wastewater treatment plant commissioned in 2012.  “The implementation of projects aimed at reducing the site’s impact on the environment is an important part of the Moscow Refinery’s upgrade programme. We are constantly improving our water purification system, employing new techniques to reduce atmospheric emissions, and at the same time monitoring our key environmental performance indicators on an ongoing basis keeping the regulatory authorities fully informed. When implementing such large-scale projects, we focus on applying the best European and international practices”, said Arkadiy Egizaryan, CEO of the Moscow Refinery. 9 PetroChina Hikes Shale Gas Spending to more than $1.6 bln China - Shale Gas Chinese state energy giant PetroChina plans to spend more than 10 billion yuan ($1.6 billion) on shale gas this year, sources with knowledge of the matter said, as domestic competition heats up after rival Sinopec announced a commercial find.  Faced with high drilling costs and the complexity of tapping shale gas, China has struggled to revolutionise its energy supplies. The top energy consumer wants to unlock what could be the world's largest shale gas reserves by emulating the hectic success of the U.S. shale boom.  PetroChina's decision to triple its shale gas spending from expenditures on the unconventional fuel over the past few years comes just months after Sinopec Corp lifted hopes that China is near a breakthrough by announcing a commercial find.  PetroChina, Asia's largest oil and gas producer, has also lifted its 2015 shale gas output target to 2.6 billion cubic metres (bcm), up from the previous 1.5 bcm, according to a company official and a government source.  That would represent only about 2.3 percent of China's total natural gas output of around 113 bcm last year.  "PetroChina wants to play catch up after Sinopec's success," said a government source who has been briefed on PetroChina's plans.  Since around 2010, PetroChina has spent about 3 billion yuan ($482.39 million) total on pilot shale drilling, according to both sources. The state giant, which makes up around 70 percent of China's total natural gas output, has so far largely focused on growing its conventional oil and gas portfolio.  PetroChina will focus on two pilot zones - Weiyuan-Changning in southwest Sichuan basin and Zhaotong in Yunnan province.  "PetroChina has over the past four years improved understanding of the shale resources and achieved some technological breakthroughs," said Mao Zefeng, joint company secretary of PetroChina.  "We're stepping up shale gas development this year," he said.  Sinopec's shale work has been concentrated in the Fuling area of Chongqing municipality in southwest China, also part of the Sichuan basin, one of the most promising geological zones for the unconventional fuel. Sinopec has drilled nearly 30 pilot shale gas wells in the Fuling area. 10 Gazprom Neft Brings Russia's Largest Motor Oil Manufacturing Plant into Production Russia - Lubricants, Oils & Greases Gazprom Neft has announced the opening of a second production facility for the mixing, dispensing and packaging of motor oils at its Omsk Lubricants Plant. The new high-tech facility is the largest in Russia in terms of total blending and packaging capacity, able to process up to 110,000 tonnes of motor oils, and with the capacity to package 180,000 tonnes of finished product.  Facilities at the plant include five mixing stations, a piping system to ensure the separate manufacturing of individual oils, high-precision additive metering machinery, and specialist devices for the preparation of mixing components. All of which allows maximum efficiency and fully automated production of a wide range of motor oils, including those under theG-Energy and Gazpromneft brands. The packaging station can handle more than 350 products and has sufficient capacity to store up to 10,000 tonnes of pre-packaged oils at any one time. The introduction of these state-of-the-art technologies, previously only available at the Gazprom Neft plant in Bari, Italy, means that average production times have been cut to four hours. Development of the new Omsk facility took place in two phases, at a cost of around RUB3.4 billion. May 2012 saw the commissioning of priority production line facilities for the manufacturing of containers and packaging, as well as a storage facility for raw materials and finished products, and a cutting-edge receiving facility. The second phase saw the construction of a fully automated oil mixing station.  Anatoly Cherner, Deputy General Director for Logistics, Processing and Sales, Gazprom Neft, commented: “The introduction of new, cutting-edge production techniques at the Omsk Lubricants Plant will enable Gazprom Neft to produce high-tech motor oils in Russia directly competitive with their Western equivalents, as well as providing Russian consumers with top-quality products. All the experience gained in managing our assets in other countries has been directly applied to the new Russian site. The next major project at the Omsk Lubricants Plant, planned for 2018, will be the production of high-purity base oils — meaning we will no longer need to import raw materials to produce high-quality oils, further strengthening our competitive position in Russia and the CIS.”  The Omsk Lubricants Plant is the main production facility of Gazprom Neft motor oils subsidiary Gazpromneft Lubricants. The company has a total of five motor oil production facilities in Russia, Italy, and Serbia. Total production volumes of premium lubricants and engine oils and fluids stand at 490,000 tonnes per year. Gazpromneft Lubricants produces oils for petrol and diesel domestic and heavy-goods vehicles (HGVs), transmission and hydraulic fluids, industrial oils, car-servicing products and cooling fluids under the G-Family and Gazpromneft brands, as well as marine oils sold under the Texaco brand. The company’s product range includes more than 400 different oils and lubricants for all market sectors, encompassing more than 1,300 different product lines.  Gazpromneft Lubricants has a 14-percent share of the lubricants market in Russia, as well as operating in the markets of the European Union, Belarus, Central Asia, Kazakhstan, Serbia, Ukraine, and the Middle East. The company extended its presence in international markets throughout 2013, reaching a total 42 and commencing deliveries to Afghanistan, the Dominican Republic, Hungary, Lebanon, Nigeria, Turkmenistan and Uzbekistan.