Press digest from last week

14.08.2017

Amec Foster Wheeler Wins Hyundai Engineering Contract For Gas-To-Liquid Plant In Uzbekistan

Amec Foster Wheeler has been awarded a lump sum contract by Hyundai Engineering Co. Ltd for the delivery of hydrogen plant technology and design and materials supply for a Terrace WallTM steam reformer heater for Uzbekneftegaz National Holding Company’s OLTIN YO’L GTL (gas-to-liquid) plant which is under construction in the Kashkadarya Region of Uzbekistan.

Amec Foster Wheeler’s scope of work includes the basic design engineering for the 37,100 Nm3/h (normal cubic metres per hour) hydrogen unit, the basic and detailed engineering, and procurement for the steam reformer heater, plus site advisory services. Amec Foster Wheeler is currently in the detailed engineering phase for the plant's Terrace WallTM steam reformer, which is scheduled to be completed in the second quarter of 2018.

This contract supports Amec Foster Wheeler’s strategy to extend its technology offerings, including its leading hydrogen production and unique Terrace WallTM steam reformer technologies.

The Terrace WallTM design is a unique and fully proven global technology, part of Amec Foster Wheeler’s wider suite of innovative technologies which supports customers across the world. In addition to this contract win, in the last year Amec Foster Wheeler has announced contracts for its proprietary Terrace WallTM reformer technology in Russia, Egypt and Italy.

Andy Hemingway, Vice-President Technology, Consultancy and Fired Heaters at Amec Foster Wheeler, said:

“This award confirms the impressive performance of Amec Foster Wheeler’s hydrogen technology as well as the proven advantages of our Terrace Wall steam reformers. The combination of Terrace Wall reformers’ capital cost-competitiveness, energy consumption efficiency, very high reliability and compact “footprint”, ideal where space is limited, especially within existing facilities, is a compelling value proposition for our customers. We look forward to working closely with Hyundai Engineering, the Engineering Procurement and Construction contractor, to deliver the hydrogen technology and steam reformer heater for this advanced gas-to-liquids facility.”

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Total awards Amec Foster Wheeler Donges refinery FEED contract

Amec Foster Wheeler announces that it has been awarded a Front-End Engineering Design (FEED) contract by Total Raffinage France, a subsidiary of Total, the French multinational integrated oil and gas company.

Total has stated that the Donges refinery currently lacks desulphurisation capacity, and a significant proportion of its fuels are therefore exported because they no longer meet fuel quality European Union specifications. The project, comprising a new vacuum gas oil hydrotreater unit and sour water stripping unit as well as modification of existing units and new interconnections, is part of the investment planned by Total to upgrade its Donges refinery, improving its performance.

Amec Foster Wheeler will support the modernisation of Total Raffinage’s Donges refinery in Western France by combining its world-class refinery FEED expertise, integrated engineering systems capabilities and its innovative Asset Information Hub (AIH) with the visualisation and digital asset Virtual Plant technology.

The AIH provides a digital representation of the physical plant. Collating documents, data, and models of the plant, the AIH is a powerful information management system with which to control and review aspects of the plant throughout its life in a secure environment. Combined with Virtual Plant technology, provided by Aveva, it allows a designer to move around an asset, zoom in, open documents and review data that is hosted in the AIH. Customers benefit by having global access to data and assured information. All this results in improved efficiency, predictable project delivery and safety.

Amec Foster Wheeler is currently the only company licenced by Aveva to provide this hosting service.

As a cutting edge, digital technology designed to improve project delivery, AIH forms a core part of Amec Foster Wheeler’s strategy to grow its refining business and deliver efficient and predictable project outcomes.

“This is a strategically important project for Total designed to increase the performance of the Donges refinery, which Amec Foster Wheeler knows well from past successful projects. We will combine innovative Virtual Plant technology and our unique Asset Information Hub, together with our extensive refinery clean fuels expertise, to deliver this important project for Total. Amec Foster Wheeler has enjoyed a long and successful relationship with Total, including studies, FEEDs and engineering, procurement and construction management projects.” Marco Moresco, President, Downstream Capital Projects, EMEA, Amec Foster Wheeler.

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Uganda, Tanzania start work on construction of $3.5bn oil pipeline

The leaders of Tanzania and Uganda laid a foundation stone on Saturday for the construction of a $3.55-billion-crude export pipeline that would pump Ugandan oil for international markets.

The 1 445 km-project - set for completion by 2020 - will stretch from landlocked Uganda's western region, where crude reserves were discovered in 2006, to Tanzania's Indian Ocean seaport of Tanga.

The project will become "the longest electrically heated crude oil pipeline in the world," said Guy Maurice, Senior Vice President of Africa at Total Exploration and Production.

Total is one of the owners of Ugandan oilfields, alongside China's Cnooc and Britain's Tullow Oil.

Tanzanian President John Magufuli, flanked by his Ugandan counterpart Yoweri Museveni, urged the three joint venture partners to speed up construction of the pipeline.

"We don't need to delay the completion of the project for almost three years. They can do it even night and day to ensure the project is completed as quickly as possible," Magufuli said.

"Act with big speed and make sure you finish this projectbefore 2020."

Uganda estimates overall crude reserves at 6.5-billion barrels, while recoverable reserves are seen at between 1.4-billion and 1.7-billion barrels.

Kampala said it picked Tanzania over its other neighbour Kenya as the route for the proposed 24-inch export pipeline because it was a "least cost and least risky" option.

"Tanzania offered several concessions to make the pipeline profitable in spite of the falling global crude oil prices," said Museveni.

Tanzania agreed to waive taxes, offered to take up shares in the pipeline project and charge a tariff of $12.2 per barrel to make the project feasible, he said.

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SK E&C wins $1.6-bln Iran refinery deal

K Engineering & Construction has signed a heads of agreement for a USD 1.6-billion revamp of Iran’s Tabriz Refinery, the South Korean company said on Sunday.

Upgrading works will be carried out by a consortium of SK and Iran’s Oil Design Construction Company.

Works will focus on increasing petrol and diesel production at the 110,000-bpd-capacity refinery. The two companies will be responsible for both financing and implementing the project.

The consortium is expected to take 36 months from construction groundbreaking  to finish the project.

The plant uses crude oil from the Ahvaz oilfield as feedstock and currently produces mainly gas oil, petrol, fuel oil, naphtha and asphalt.

Projects to raise gas oil production to Euro 4 standards and implement sulphur recovery are underway at the refinery and are expected to be complete in 2018.

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Petrofac wins new contract in Oman

UK-based oilfield services specialist Petrofac has been awarded a US$2 billion contract in Oman.

The deal will see the troubled firm – which is currently under investigation by the UK’s Serious Fraud Office (SFO) – working on the Duqm Refinery, with its joint venture partner, Samsung Engineering.

Petrofac will undertake engineering and construction work on the 810-hectare project, which will have a refining capacity of around 230,000 barrels of oil per day when completed.

The Oman contract is the second to be secured by Petrofac in the country in as many months; in June, it was awarded a 10-year contract to provide services to Petroleum Development Oman.

Following the news, Petrofac’s shares rose 7.5% on the London Stock Exchange. Nevertheless, its current share price remains around 40% lower than before the SFO investigation into corruption and money laundering became public knowledge.

Petrofac denies all allegations of wrongdoing.

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Saudi Aramco signs JV for shipyard complex

Saudi Aramco announced on Tuesday that it has signed its first major contract in the planned construction of King Salman International Complex for Maritime Industries and Services at Ras Al-Khair, Saudi Arabia.

Under the terms of the contract, a consortium comprising Saudi Archirodon Company and Huta Hegerfeld will conduct dredging and reclamation for approximately 37 million cubic metres of fill, in addition to making ground improvements and constructing new quay walls, wharves and rock revetments to protect the shipyard complex.

“The Complex is in line with the Kingdom’s economic diversification objectives, it will position the Kingdom as a strategic logistics hub and will create vast job opportunities,” said Ahmed Al Sa’adi, Saudi Aramco’s senior vice-president for technical services.

Inaugurated in November 2016, the shipyard complex represents another step in Saudi Arabia’s drive to diversify its oil-dependent economy and develop its local content as outlined by Saudi Vision 2030. The shipyard is the largest of its kind in the region and, when completed, will expand Saudi Arabia’s local capacity for vessel and rig building, maintenance, repair and overhaul services.

Saudi Vision 2030 aims to transform Saudi Arabia’s economy and reduce the country’s dependence on oil.  As part of the plan, Saudi Arabia has proposed an initial public offering (IPO) for shares representing about 5% of NOC Saudi Aramco. The IPO has caused an international stir, with several stock exchanges vying to host what has been billed as the world’s largest such listing.

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Eni, Anadarko to build LNG terminals in Mozambique

Italy's Eni and US oil and gas firm Anadarkosigned agreements with the Mozambiquegovernment on Thursday to build two liquefied natural gas terminals in the southern African country.

The terminals will be built in Cabo Delgado province, where Mozambique has made massive gas discoveries that could transform it from a poor African country into a major energysupplier to Asia.

The agreements were signed by Mozambique's energyminister Letícia Klemens and the regional heads of Eniand Anadarko, a Texas-based oil producer. The two companies will separately build their own terminals, Klemens told a press conference. She declined to give the size of the investments.

Eni is spending $8-billion to develop a gas field off the coast of Mozambique while Anadarko is developing Mozambique's first onshore LNG plant consisting of two initial LNG trains with a total capacity of 12-million tonnes per annum.

More than $30-billion is expected to be invested in Mozambique's natural gas sector to build capacity to produce 20-million tonnes per year of LNG, with the first exports due to start in 2021.

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Global Business Club announce CEE & CIS downstream project management conference

Successful implementation of complex revamp and construction projects without budget overruns and schedule slippage is the dream of any refinery manager. 

VPs and Project Managers of companies such as LUKOIL, GAZPROM NEFT, MOL, SLOVNAFT, SOCAR and KAZMUNAYGAZ will take part in the 4th CEE & CIS Downstream Project Management Conference, 2- 3 November 2017 in Vienna, to exchange best practices in the project execution and capital efficiency.

The conference includes
· A technical site-visit to Slovnaft Refinery. Spaces for the site visit are limited so early booking is recommended.
· Special focus on the best practices in executing revamps projects presented by the world-leading EPC contractors 
· Detailed analysis of the current state of downstream projects in the CEE & CIS regions and outlook for projects planned for 2018-2022
· Overview of innovative project delivery technologies (IoT, digital & automation) to improve project performance & optimise CAPEX

Downstream Project Management Conference is the region’s only event for projects owners, major refineries and petchem plants, EPC contractors, engineering companies and technology licensors who are interested in improving performance of capital projects in the CIS & CEE downstream sector and if you are one of them please join us on 2-3 November for the exciting conference and exclusive technical visit to Slovnaft Refinery. 

Elmira Gabidullina 
+44 (0) 845 868 8234 
e.gabidullina@globuc.com 
www.globuc.com/cisdownstream

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