Gazprom, Petrofac sign 3-year Kurdistan deal
Petrofac will provide engineering services to Gazprom Neft at its operations in the Kurdistan Region of Iraq, the Middle East-focused EPC company announced on Monday.
The two companies signed a master services agreement under which Petrofac will provide engineering services on a call-off basis for three years at the Russian company’s Sarqala block (formerly known as Garmian).
Petrofac’s works will be directed towards a debottlenecking operation to expand the Sarqala field’s central processing facility, the company said in a press release.
“We have been working with this key client in Iraq for more than three years and hope to take this opportunity to build on our relationship through the demonstration of Petrofac’s fit-for-purpose and value-driven engineering solutions in the Kurdistan region,” Steve Webber, senior vice-president, Petrofac Engineering & Production Services East, said.
Gazprom Neft Middle East has a 40% operating stake in the Sarqala block, with WesternZagros also holding 40% and the Kurdistan Regional Government holding the remaining 20%.
In late September, a Gazprom executive told the company’s news service that it is eyeing entering new Kurdistan blocks as operator, as well as looking to renegotiate the terms of its PSAs due to the drop in oil prices.
New SA and Mozambique gas pipelines to meet demand
South Africa and Mozambique are developing more gas pipelines in order to meet the increasing demand for liquefied natural gas (LNG) in both countries.
Mozambique’s Deputy Minister of Mineral Resources and Energy, Augusto de Sousa Fernando, yesterday told delegates at the International Gas Co-operation Summit in Durban that demand had shot up over the past 13 years.
De Sousa Fernando said South Africa had an opportunity to benefit from the development of LNG in the future by teaming up with other countries in the region. He said this would help to stimulate the economy and create new jobs.
Projects
“The demand for natural gas has been increasing since 2004 in our country. This is one of the reasons we are developing a gas pipeline between Mozambique and South Africa,” De Sousa Fernando said, adding that South Africa and Mozambique were working on ways to develop gas projects.
He said the region had a long way to go as it was still lagging behind the developed countries when it came to gas power. Andrew Herscowitz, a co-ordinator at Power Africa, said the gas market was progressing at a slow pace in Africa. Herscowitz said Power Africa wanted to support economic growth and development by increasing access to reliable, affordable and sustainable power in Africa.
Boom
The project was started by former US president Barack Obama. “South Africa and Mozambique are going to be the cause of a boom in the economies in the region, and that bodes well for job creation and infrastructure,” he added.
“We estimate that Mozambique will stand to gain $160 billion (R2.2trillion) over a 20-year period through investment in gas power infrastructure, and the economy is expected to accelerate rapidly.”
Total awards Wood oil refinery contract
Wood has been awarded a new multi-million dollar contract by Total, supporting their Lindsey Oil Refinery located in North Killinghome, Lincolnshire, UK. The five-year contract is to provide onshore maintenance services and includes the option to be extended up to two years.
Robin Watson, chief executive of Wood said: “We are strategically focused on leveraging our proven offshore track record of strong service, to broaden our downstream footprint in the UK; and this contract win achieves this.
“It was secured by the clear demonstration of our commitment to safety through efficient delivery of our innovative range of services to the oil and gas industry.
“Our extensive capabilities in offshore maintenance gained from over two decades of working with Total, position us uniquely to maximise the productivity while maintaining the integrity of this significant asset.”
The new contract will commence on 1 January 2018.
It builds on Wood’s support of Total’s assets across the globe, including their UK offshore portfolio. In 2015, the company secured a five-year contract to deliver engineering, procurement, construction and commissioning services to four of Total’s offshore assets and two onshore facilities in the UK continental shelf; the Alywn, Dunbar, Elgin and Franklin platforms, St Fergus Gas Terminal and Shetland Gas Plant (SGP).
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Iran Delays Tender for Azadegan Oilfield Again
Iran has pushed back its tender for the development of its Azadegan oilfield until at least 2018, Reuters reports.
“The companies are still assessing the technical surveys. The tender will not take place in 2017,” the Managing Director of the National Iranian Oil Company (NIOC), Ali Kardor told Iranian media, Reuters reports.
Petronas, Total, and Impex submitted surveys of the oilfield. The tender has already been pushed back to permit oil companies more time to appraise the oilfield, Reuters reported in June.
Azadegan is estimated to contain 37 billion barrels of oil, according to Reuters, and is the largest oil field in Iran. It is located on the Iraqi border.
KBR Awarded Contract To Deliver Facilities Management Services In The Middle East For UK MOD
KBR, Inc. (NYSE: KBR) announced today it has been awarded the Facilities Management Services Operations (FMSO) contract by the UK Ministry of Defence (MOD).
Under a major exercise by the MOD to rationalize contracts across its operational estate, KBR will now be the sole supplier delivering FM services to the UK MOD on deployed operations.
Under the terms of the contract KBR will deliver a vast range of hard and soft FM services across the UK MOD's operational estate in the Middle East to include:
Operate and maintain existing infrastructure assets and optimize the use of assets across the operational estates
Provide cost effective delivery for real life support services including catering, cleaning, laundry, waste management and pest control service
Provide services including grounds maintenance, reprographics, office machinery and government furnished equipment servicing and maintenance
The wide range of services delivered under the contract will see KBR teams working alongside the MOD in locations such as Afghanistan, Iraq, Oman, Bahrain and the UAE and will require KBR to deliver flexibility, responsiveness and agility to meet any changes in the operational estate.
The contract also provides the potential to support both operational deployments and exercises undertaken by the MOD on a call off basis going forward, particularly in the Middle East Region.
KBR's Government Services business provides deployed operational support to the highest standards across the world.
"We are proud to have supported the British military on deployed operations over many years and are pleased to have been chosen as their support partner across the Middle East," said Jay Ibrahim, KBR President, EMEA. "This award is a testament to the hard work of our many staff who ensure that military bases function seamlessly day in, day out, in some of the most austere locations in the world, enabling military personnel to focus on their operational duties effectively."
The initial period of this contract is three years, with associated revenue of $48million, with the option to extend by up to two years for a total maximum value of $80 million.
Revenue associated with this project will be booked into backlog of unfilled orders for KBR's Government Services Business Segment in Q3 of 2017.
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Balfour Beatty Builds For The Future With New £55m Contract Award
Balfour Beatty, the international infrastructure group, has been appointed by Forth Valley College to deliver the final phase of construction work to the new £55 million Falkirk campus in Grangemouth, Falkirk.
Balfour Beatty will be responsible for the construction of the 20,709 square metre Science and Engineering campus and its associated facilities, which on completion will become the Forth Valley College headquarters and house over 2,000 full-time students.
The company has utilised a range of its in-house capabilities, including mechanical and electrical engineering expertise and specialist geotechnical knowledge to meet the project’s requirements and provide the client with an integrated, sustainable design.
Hector Macaulay, Managing Director of Balfour Beatty’s regional business in Scotland, said: “This is another great win for our business in Scotland, and we are delighted to be able to provide over 2,000 students in Falkirk with a stimulating and exciting study environment.
“Throughout the project lifecycle, we will work closely with a variety of key community stakeholders including the Polmont Young Offenders Institution, Forth Valley Community Focus and The Engineering Trust to drive further benefit and deliver on our added social value promises.”
Works are due to commence this Autumn, and at construction peak will employ over 250 individuals including 18 apprenticeship positions and opportunities for 10 long term unemployed people.
SOCAR: Baku oil refinery to be modernized by 80%
Azerbaijan’s Heydar Aliyev oil refinery will be modernized by 75-80 percent, Tofig Gahramanov, SOCAR vice-president for strategic development, said at the Argus 2017 international petroleum summit in Baku Oct. 12.
“About 14 new facilities will be built as part of the modernization. The main objectives of modernization include increasing production at the plant, improving the quality of products and bringing it up to the Euro-5 standard,” noted Gahramanov.
According to him, after the modernization, the production of gasoline at the refinery will be increased from the current 1.3 million tons up to 2.2 million tons, diesel – from 2.2 million tons up to 2.9 million tons and aviation kerosene – from 600-700,000 tons up to one million tons.
The SOCAR vice-president said that it is planned to ensure complete renovation of the plant. Speaking about the cost of the project, Gahramanov noted that currently, the project is estimated at $1.8-2 billion, but the exact amount will be announced after the tender procedures.
The Baku Oil Refinery’s modernization is currently underway and it will be completed until 2020. The refinery’s processing capacity will be increased from 6 to 7.5 million tons of oil per year.