Italy’s Saipem looks to wind as downturn continues to kick
Italy’s Saipem is looking to renewable energy sources such as wind farms to help it cope with a slump in the accounts books for oil services.
Oil contractors around the world have come under pressure as weak crude prices force even the majors to cut billions of dollars in costs and delay final investment decisions on projects.
Following the company’s first quarter results, Saipem’s chief executive Stefano Cao said: “We’re looking to grow in areas like wind farm projects, especially in the North Sea, and dismantling oil and gas platforms.”
Production cuts by OPEC have helped crude prices, but recovery for oil contractors is expected to be uneven, with those finding it tougher to cut capacity and costs lagging others with more flexible business models.
Saipem, which has both onshore and offshore drilling assets, is a market leader in subsea engineering and construction (E&C) including the world’s most expensive oil field, Kazakhstan’s Kashagan.
Cao said: “Pressure continues this year, especially in offshore E&C and few initiatives are being sanctioned… but we are on the right path.”
A slowdown in the group’s core offshore E&C business as well as in drilling led to a 20.3 percent fall in revenues to 2.3 billion euros ($2.5 billion) in the period.
Saipem shares were up 1.9 percent, while the European oil and gas sector was down 0.5 percent.
Some analysts have said Saipem will need to streamline its business and sell off assets to help fund development.
But Cao denied a break up was being considered, adding: “No way whatsoever. I’m not here to break up the company.”
However he added the group could consider joining forces with others to help improve its onshore drilling performance.
TechnipFMC And DOF Subsea Announce The Delivery Of Skandi Búzios And Commencement Of Contract With Petrobras
TechnipFMC (NYSE and Euronext: FTI) and DOF Subsea (DOF) announce that the Skandi Búzios, a pipelay support vessel (PLSV) owned by the joint venture formed between TechnipFMC (50%) and DOF (50%), commenced its 8-year charter contract with Petróleo Brasileiro S.A. (Petrobras), as scheduled on April 13th, 2017.
Skandi Búzios is the sistership of the Skandi Açu, which started its charter contract on August 13th, 2016. These two vessels have the most important flexible pipelay tension capacity in the world (650 tons), enabling the installation of large diameter flexible pipes in the ultra-deepwater Brazilian pre-salt area.
Under the joint venture agreement, TechnipFMC is responsible for the engineering and management of the flexible pipelay, while Norskan S.A., a DOF ASA subsidiary, is responsible for the marine operations.
Hallvard Hasselknippe, TechnipFMC’s President of Subsea Projects, stated: "We are confident that these new state-of-the-art PLSVs, together with the expertise of our people will be key for Petrobras to successfully achieve its projects offshore Brazil."
Mons S. Aase, DOF Subsea's Chief Executive Officer, added: "This milestone project is the result of our long-term focus on the Brazilian market. We are proud of this significant addition to our Brazilian fleet."
Gazprom Neft adds rail project to Omsk refinery upgrade
PJSC Gazprom Neft has started construction of a railcar oil products-loading terminal, AUTN-1, at its 21.4 million-tonne/year Omsk refinery in Western Siberia as part of the ongoing modernization and upgrading program to reduce environmental impacts as well as improve processing capacities, conversion rates, energy efficiency, and production qualities at its Russian refineries by 2020 (OGJ Online, July 27, 2016).
Designed to replace the existing open-gallery overhead rail installation at the Omsk refinery’s Commodity Supply Base No. 1, the 1.2 million-tpy AUTN-1 will be fully automated to improve accuracy of filling operations and commercial accounting for all product shipments, including gasoline, diesel, marine fuels, aromatic hydrocarbons (paraxylene, o-xylene, benzene, toluene concentrate), and aviation fuels, Gazprom Neft said.
To prevent release of fumes at the loading operations, AUTN-1 will feature unidentified technology to ensure airtight and leak-proof filling, including an activated carbon filtration system capable of absorbing up to 99% of vapor from finished products and returning it to the refinery for reuse in secondary processing activities, the operator said.
While it confirmed a project cost of 2.8 billion rubles, Gazprom Neft did not reveal a firm timeline for startup of AUTN-1.
This latest project joins a series of works under way as part of the second phase of the Omsk refinery’s modernization program, which specifically aims to further improve the manufacturing site’s overall environmental performance as well as its yield of light-end petroleum products.
Official: Total will finalize South Pars deal within weeks
Iran says it expects France's Total to finalize an agreement on the development of a key natural gas project in the south of the country in less than a month.
Iran's Deputy Oil Minister for International Affairs Amirhossein Zamani-Nia said that Total had been waiting to see whether there would be any 'positive developments' in Washington toward the renewal of sanctions against Iran before proceeding with the development of South Pars Phase 11.
"Those developments took place and Total will continue negotiating with Iran on a final agreement over the project," Zamani-Nia told ISNA.
"This will depend on how prepared Iran would be and how long it would take to write the text of the deal. I don't think it would take longer than a month."
Last November, Total signed a preliminary agreement, worth $4.8 billion to develop South Pars Phase 11 in cooperation with China's CNPC and Iran's Petropars.
Phase 11 aims to produce 1.8 billion cubic feet of gas per day for the national grid.
Total CEO and Chairman Patrick Pouyanné said in February that a final investment decision over the project hinges on whether the US would renew sanctions waivers against Iran or not.
Managing Director of National Iranian Oil Company (NIOC) Ali Kardor said in March that Total would finalize South Pars Phase 11 agreement within weeks.
"The [French] company has already allocated $15 million to this project in accordance with the first phase of the contract," Kardor was quoted as saying.
Iran has signed a flurry of deals with Western companies over the past year since the easing of international sanctions on Tehran after an accord was reached over its nuclear program.
Iran needs foreign investment for repairs and upgrading of its oil and gas fields. It also seeks the transfer of technology to its oil industry after a decade of sanctions.
Shell signed a provisional deal in December to develop Iranian oil and gas fields South Azadegan, Yadavaran and Kish in December 2016.
Iran has named 29 companies from more than a dozen countries as being allowed to bid for oil and gas projects using the new, less restrictive contract model.
The firms include Shell, France's Total, Italy's Eni, Malaysia's Petronas and Russia's Gazprom and Lukoil, as well as companies from China, Austria, Japan and other countries.
Russia's Zarubezhneft signed an MoU for a feasibility study on two joint fields in the west of the country.
Norway's International Aker Solutions Company signed an MoU to modernize Iran's oil industry.
Last May, Austria's OMV signed an MoU for projects located in the Zagros area in western Iran and the Fars field in the south.
South Korean Daewoo Engineering and Construction (Daewoo E&C) signed an MoU to construct an oil refinery in Bandar Jask, on the southern coast of Iran.
Italy's Saipem signed MoUs to cooperate on pipeline projects, upgrading of refineries and development of Tous gas field in the northeastern province of Khorasan Razavi.
Norwegian oil and gas company DNO said it was the second Western energy company after Total to sign a deal with Iran under which it agreed to study the development of the Changuleh oilfield in western Iran.
Lukoil, Russia's second biggest oil producer, hopes to reach a decision on developing two new oilfields in Iran.
Germany's Siemens AG signed an MoU in May to overhaul equipment and facilities at Iran's oil operations and refineries.
BASF's Wintershall oil and gas exploration subsidiary signed an MoU with the National Iranian Oil Company in April 2016.
Neste Jacobs to perform a comprehensive energy study for Unipetrol's Livinov refinery
Technology, engineering and project management company Neste Jacobs and the leading refinery and petrochemical group Unipetrol, which constitutes an important part of the Czech industry, have signed an agreement for Neste Jacobs to perform a comprehensive energy efficiency study of Unipetrol's Litvinov oil refinery in Czech Republic.
Neste Jacobs has a longstanding experience in improving energy efficiency for oil refineries and petrochemical plants. The energy efficiency study will be performed by utilizing Neste Jacobs' proprietary NAPCON energy performance analysis, that is a unique combination of high level process know-how and modelling skills, pinch-technology, equipment expertise and automation solutions. Neste Jacobs' energy analysis with a modular approach is a globally proven solution to identify the feasible improvement potential and create a practical action plan to implement the improvements. NAPCON energy performance analysis is fully customizable according to customer needs.
The study will review existing energy consumption and production within the refinery process units. This includes pinch-analysis to identify opportunities to improve heat integration of the process. This is combined with fired heater optimization to maximize the benefits. On top of energy efficiency, the study includes waste water optimization assessment to minimize the water usage and recycling of waste water.
"We are happy to provide our extensive energy efficiency and water management knowledge in the form of an energy study for Unipetrol's refinery in Litvinov", says Jarmo Suominen, CEO of Neste Jacobs. "Our excellent project team will provide systematic study to Unipetrol to discover solutions, which are both practical and lucrative."
"Unipetrol has set an Energy Management System certified according to the ISO 50001:2011. The study is another very important step for a sustainable program in energy efficiency improvement in our company. Neste Jacobs' high technical knowledge of refinery projects and detailed process understanding convinced us to select them as our preferred partner in this project. They have good references on energy efficiency studies especially in oil refineries," says Tomá Herink, Member of the Unipetrol Group's Board of Directors responsible for research and development.
Italy’s refiner Saras clears all oil debt with Iran
Key Italian oil refiner Saras says it has cleared all the debt it owed Iran for oil purchased before sanctions were imposed against the country in 2012.
Saras General Manager Dario Scaffardi was quoted by Reuters as saying that the debt – which amounted to €400 million – had been cleared in the first quarter of this year.
The company which is partly owned by Russian oil giant Rosneft used to take a significant part of its feedstock from Iran before sanctions. It has resumed shipments since, Reuters added.
Saras announced last November that it had paid €160 million of the debt it owned Iran for previous crude oil purchases and that the rest of the payments would be made in the near future.
The company had earlier in 2016 paid back about €100 to Iran for unsettled oil purchases.
Sanctions against Iran were lifted in January 2016 after a deal that the country had sealed with the five permanent members of the Security Council plus Germany came into effect.
Nevertheless, banking restrictions that have remained as a result of multiple-year sanctions still remain and are already making it difficult for international financial institutions to process payments to the Islamic Republic.
Last year, Saras chief Scaffardi said the company had renewed its crude oil supply contract with the National Iranian Oil Company (NIOC) but added there were still some hurdles to overcome on the banking payment front.
"We took our first cargo of crude in June ... There are some interesting opportunities from this area in the future," Scaffardi was quoted by Reuters as saying at the time.