Press digest from last week

22.05.2017

KBR wins two more contracts at Ammonia plant in Russia

KBR, Inc announced today it has been awarded Operator Training Simulator (OTS) and Reliability Based Maintenance (RBM) services contracts by JSC EuroChem Northwest for their ammonia plant under construction in Kingisepp, Russia.

The OTS will provide a cost effective solution for training operators for a safe and efficient plant start-up and continued on-going operational training. The RBM will enable proactive monitoring of assets and formulation of appropriate reliability strategies which will lead to continuous improvement of performance, improved safety and higher productivity.

Under the terms of the contracts, KBR will provide turnkey delivery of the OTS and RBM solutions and services for the Kingisepp ammonia plant with design capacity of 2,700/2,890 MTPD, or 1 million tonnes per annum.  The new plant uses KBR's highly efficient Purifier™ Ammonia technology.

"KBR is pleased to have the opportunity to provide OTS and RBM for JSC EuroChem Northwest," said John Derbyshire, President, KBR Technology and Consulting (T&C).

"KBR is committed to providing state-of-the-art solutions for safe plant start-up and operations and providing an environment to achieve preventative and predictive maintenance activities of the ammonia plant."

"This project is indicative of KBR's strategic commitment to growing our presence in Russia," Derbyshire continued.

KBR has been a leader in providing know-how based automation services and solutions to support the KBR Technology Licensed process technologies and engineering, procurement and construction (EPC) projects for more than 20 years.

Revenue associated with this project was undisclosed and will be booked into backlog of unfilled orders for KBR's T&C Business Segment in two installments, the first was booked in in the fourth quarter of 2016 and the next will be booked in the second quarter of 2017.

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BASF selects Jacobs to support site engineering in Germany

Jacobs Engineering Group Inc, as one of BASF’s Global Engineering Partners for Large Capital Projects, provides engineering, procurement and construction management services for BASF sites worldwide. Under this global partnership, Jacobs has now been appointed to execute services at BASF’s site in Ludwigshafen, Germany. With an area of approximately ten square kilometers the Ludwigshafen Verbund site is the world’s largest integrated chemical complex.

“This assignment strengthens the relationship between BASF and Jacobs and represents recognition for our team’s efforts,” said Jacobs SVP & GM Downstream for Petroleum and Chemicals Mark Bello. “We remain committed to providing a high level of service and value to support BASF with the continuous improvement and safe delivery of high-quality projects.”

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KBR Awarded FEED For Oman LNG

KBR, Inc. announced that it has been awarded a Front-End Engineering Design (FEED) and project management services contract for Oman Liquefied Natural Gas LLC (Oman LNG) in Qalhat, Oman . Oman LNG operates three liquefaction trains with a total nameplate capacity of 10.4 million tonnes per annum (mtpa).  

KBR is a recognized leader in LNG with over 40 years of continuous experience and depth of capability, know-how and engineering talent that is unmatched in the industry. This project represents KBR's reentry into the Oman market and supports our strategic focus on gas monetization in the Middle East region.  

"This contract confirms KBR's strong reputation as one of the world's preeminent leaders in LNG facilities and demonstrates the trust that Oman LNG has placed in KBR following the successful development of the original Front-End Engineering Design (FEED) of this world-class LNG facility," said Jay Ibrahim, KBR President: Europe , Middle East & Africa.  "We are committed to expanding our footprint in the Middle East and are delighted at this opportunity to reestablish KBR in Oman and contribute to Oman's In-Country Value (ICV) initiatives."  

Revenue associated with this contract was undisclosed  and will be booked into backlog of unfilled orders for KBR's Engineering & Construction business segment in the second quarter of 2017.

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New BP oil project breathes new life into North Sea

BP has started production at an oilfield in the North Sea after a $5.7 billion redevelopment, one of the largest such projects there in recent years that will breathe new life into the aging offshore basin.

The Quad 204 project in the western Shetland region, also knows as Schiehallion, is expected to ramp up production throughout 2017 to reach a level of 130,000 barrels per day, BP said in a statement.

The Schiehallion field was first developed in the mid-1990s. The 4.4 billion pound project, which was sanctioned in 2011, will unlock an estimated 450 million barrels of oil and gas, extending its life into 2035.

The upgrade includes the construction of a giant floating, production, storage and offloading (FPSO) vessel, the Glen Lyon, as well as a new network of wells and subsea facilities.

The field is operated by BP, which holds a 36 percent interest in it, while Royal Dutch Shell has a 55 percent interest and private equity-backed Siccar Point owns the remaining 10 percent.

For BP, the project is the third of seven projects it plans to launch this year as it seeks to increase its production by around 800,000 barrels of oil equivalent per day (boed) by the end of the decade.

The British company plans to double its North Sea production to 200,000 boed by 2020. The basin has enjoyed a strong boost in output in recent years, defying a deep slump in oil prices, as new projects are set to increase its production over the next two years to 1.2 million bpd.

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Eni brings Ghana’s OCTP project on stream

Eni has achieved first production from the Offshore Cape Three points project off Ghana, the company announced on Saturday.

Output is being sourced from 18 underwater wells across the Sankofa Main, Sankofa East and Gye-Nyame fields, which feed the John Agyekum Kufour floating production, storage and offloading vessel.

The FPSO is tied back via a 63-kilometre pipeline to the onshore receiving facilities near Sanzule, where some 5.1 mcm (180 mcf) of natural gas is delivered to the national grid on a daily basis.

“Starting production only two and a half years after the approval of the Development Plan is an extraordinary result and a reason for great pride,” Eni CEO Claudi Descalzi said in a press release.

Eni is joined in the development by Vitol (35.56%) and Ghana National Petroleum Corporation (20%).

The Ghana ramp-up follows the start of production at Eni’s Jankrik development last Monday. The Indonesia gas project got underway one a month ahead of schedule.

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Oil production starts for Vitol offshore Ghana

The Dutch energy company says production will soon reach about 45,000 barrels of oil per day.

Oil production from a floating facility off the coast of Ghana has started three months ahead of schedule, Dutch energy company Vitol said.

Vitol and Italian energy company Eni are leading efforts alongside the Ghana National Petroleum Corp. to draw on the oil and gas reserves at the Sankofa reservoir offshore Ghana. Using a floating production storage and offloading vessel, the partnership is tapping into a basin with an estimated 1.5 trillion cubic feet of natural gas and 500 million barrels of oil in place.

"This is great news for the project and for Ghana," Chairman and CEO Ian Taylor said in a statement. "It is thanks to the hard work and professionalism of everyone involved in the project that collectively we have been able to deliver first oil [more than] three months ahead of schedule."

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