Press digest from last week


Petrofac secures £165million contract for Raageshwari deep gas project

Petrofac has won a $233million (£165million) engineering, procurement and construction deal for the second phase Vedanta Resources’ Raageshwari Deep Gas Field Development Project.

The UK-based energy services giant has been given work for well pads, flowlines and a new gas processing terminal under the 23-month contract.It follows announcements of two other contract wins for Petrofac in India, at the Kochi refinery and Visakh Refinery.

The Raageshwari deep gas terminal is located in the city of Barmer in the Rajasthan state, it processes gas from the major Raageshwari gas field.

Sunder Kalyanam, group managing director for Petrofac’s Engineering & Construction Growth business said: “This award is further confirmation of our organic growth ambitions in action.“It is particularly pleasing that we continue to build our presence in-country following two other recent EPC contract awards.“We are delighted to be supporting Vedanta Limited in the safe and efficient delivery of this important project and look forward to building a long and successful relationship together.”


Statoil awards $1.5 billion drilling contracts, favors Archer

Statoil has awarded 12 billion Norwegian crowns ($1.53 billion) worth of new platform drilling contracts to Archer, KCA Deutag and Odfjell Drilling, the Norwegian oil company said on Friday.

The new four-year contracts covering 18 fixed platforms on Norway’s continental shelf were part of Statoil’s efforts to increase cooperation between various service providers to further boost drilling efficiency, a spokesman said.

“We are also in the market to sign new contracts with providers of oil services to create integrated drilling services as we have done at Johan Sverdrup and Mariner fields,” the spokesman added.Out of 18 drilling contracts announced on Tuesday, Norway’s Archer won the most, 12 contracts, sending its shares up 14 by 1230 GMT.The company estimated firm contract value at more than 6 billion crowns, while it could reach 15 billion crowns if Statoil decides to exercise the options.

While Archer will continue to provide platform drilling services at eight installations, it has also won contracts at Grane and Gulfaks A, B and C platforms, taking over from Odfjell Drilling and KCA Deutag respectively.


Kværner ASA: Kvaerner and Aker Solutions letter of intent for Johan Sverdrup phase 2

Kvaerner has in a 50/50 joint venture with Aker Solutions been awarded a letter of intent with Statoil for modifications of the riser platform and the field center for the Johan Sverdrup development. The project will provide extensive positive ripple effects for a wide range of Kvaerner's and Aker Solutions' subcontractors. At peak, the work will involve about 2 000 employees in the two companies as well as subcontractor personnel. The total value of the agreement is around NOK 3.4 billion.

Kvaerner and Aker Solutions will, through a 50/50 owned joint venture, undertake engineering, procurement and construction of a new utility module of around 5 000 tonnes for the riser platform. In addition, the agreement includes modification work at the field center, and installation and integration work offshore in connection with phase 2 of the field development. The work will start in the second quarter of 2018 and will be completed in 2022.

The module will be constructed at Kvaerner's specialised facilities at Stord, Norway. For Kvaerner, the peak manning on the project will be around 550 people. The project will have positive effects for a wide range of subcontractors. Including spin-off effects for subcontractors, service companies, etc., the contract is expected to create work for around 2 000 people.

"We are looking forward to working with Aker Solutions in a focused joint venture with a common project management team. We will execute the new project based on all the improvements we have made in recent years for increased productivity and cost reductions", says Elly Bjerknes, executive vice president and responsible for topside projects in Kvaerner.

Kvaerner is already one of the suppliers with most deliveries to phase 1 of the Johan Sverdrup development. The contracts previously signed include the utility and living quarters topside, the three largest and most complex steel jacket substructures, as well as offshore hook-up of the riser platform together with Aker Solutions. Aker Solutions earlier this year completed front-end engineering and design (FEED) for phase 2 of the development, including for the module and work to integrate this with the riser platform.

"For us in the supplier industry, it is gratifying to see that our comprehensive improvement measures provide such results as we see today. Kvaerner's strategy is to grow within the market for upgrading and modification, typically by building new modules such as in this project. Our strength is that we over time have built expertise to deliver some of the most demanding projects in the world. Based on this, Kvaerner has been recognised throughout the industry to deliver safely, predictably and at the agreed schedule", says Idar Eikrem, interim President & CEO of Kvaerner.


Austria's OMV to invest in UAE offshore oilfields in $1.5 billion deal with ADNOC

Austrian oil and gas group OMV said it will take a 20 percent interest in two oilfields off the United Arab Emirates under a $1.5 billion deal agreed with the Gulf state’s national oil company ADNOC.

Abu Dhabi National Oil Company (ADNOC), which generates almost all of the United Arab Emirates’ oil, is awarding new concessions to foreign investors in a bid to gain access to technology and funding and to secure buyers for its crude.

OMV and ADNOC agreed a year ago to evaluate joint opportunities, including the exchange of know-how in refining operations and cooperation on downstream technical and maintenance support.

OMV said on Thursday that it would acquire a 20 percent interest in the concession for the offshore oilfields Satah Al Razboot and Umm Lulu as well as the associated infrastructure.

The Austrian group wants to build up its Middle East operations to match the size of its Russian business and reduce its reliance on Russia, and said last month that it is ready to spend 10 billion euros ($12 billion) on acquisitions to expand overseas.

ADNOC aims to take full advantage of rising demand for higher value refined and petrochemical products, particularly in China and Asia and benefit from its partners’ experience.

It announced last year that it would split its ADMA-OPCO offshore concession into three areas - Lower Zakum, Umm Shaif and Nasr, and Sateh Al Razboot and Umm Lulu - with new terms to unlock greater value and increase opportunities for partnerships.

OMV said it expected to sign the deal with ADNOC at the end of this month.







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