Press digest from last week

26.02.2018

Maire Tecnimont wins contract for DCU Project at Omsk Refinery in Russia

Maire Tecnimont subsidiaries Tecnimont and Tecnimont Russia have been awarded engineering, procurement and construction management (EPCm) services contract by Gazprom Neft for the Delayed Coking Unit (DCU) project at the Omsk refinery in Russia.Under the $215m contract, the two companies will provide EPCm services for the DCU project that will be implemented inside the existing Omsk Refinery.

The new DCU will have a feed capacity of 2 million tons per annum (MTA) and is expected to expand the refinery’s capacity for the conversion of heavy residues while maximizing liquid product and producing anode grade quality coke.With a processing capacity of about 21.3 MTA of crude oil, the Omsk Refinery produces petrol, diesel, fuel oil and jet fuel as well as range of aromatics, liquefied petroleum gases, lubricants, additives and catalysts.

Tecnimont Russia will perform a significant portion of the scope of work in its operating center in Moscow.Maire Tecnimont CEO Pierroberto Folgiero said: “After our recent awards in the refining segment, this contract enables us to consolidate the Group’s business in the Delayed Coking Unit process technology, as well as strengthening the strategic relationship with a prominent client such as JSC Gazprom Neft.“With this important achievement we confirm our outstanding footprint in the Russian Federation, and the reliability of our technology-driven strategy.”

The CDU will comprise five sections which include a coking section, a gas fractionation unit, a section for cleaning liquefied hydrocarbon gases, and an amine regeneration unit.

Gazprom earlier said that the construction of the DCU is a part of the second phase of modernizing its refining assets in a bid to increase production of light petroleum products.Gazprom Neft processing, logistics and sales deputy CEO Anatoly Cherner earlier said: “Construction of the CDU, together with other projects that form part of the second phase of modernising the plant, allow us to achieve a synergistic effect, bringing the Gazprom Neft Omsk Refinery closer to achieving the best international standards, increasing refining depth to 97% and yield of light petroleum products to 80%.”

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Egypt, Israel in $15-bln gas deal

Israel has signed a deal to deliver USD 15 billion worth of gas to Egypt, international media reported on Monday.


The 64 bcm (2.26 tcf) of gas sold to Dolphinus Holdings, a private Egyptian company, over a period of 10 years would come from the Tamar and Leviathan fields in the Mediterranean Sea, Reuters reported.

Israel’s energy minister, Yuval Steinitz, told the agency that it is the most important export deal Israel and Egypt have signed since their 1979 peace accord.

The Tamar field started producing in 2013. Development of the Leviathan field is about 40% complete and it is expected to come on stream in 2019, operator Noble Energy announced on Tuesday.

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Albania, Royal Dutch Shell sign major oil exploration deal

The Albanian government and the Royal Dutch Shell, an international leading hydrocarbon company, signed here on Tuesday an oil exploration deal which foresees major investments in Block 4 in southern Albanian mountain of Shpirag, Berat.

Under this deal, Shell plans investments worth 42.5 million euros in oil and gas explorations over the next seven years while the contract will have duration of 25 years.

The deal was signed by Albania's Minister of Infrastructure and Energy Damian Gjiknuri, and the general supervisor Shell Albania for Shell International Exploration and management, Jon-Henk van Konijnenburg who stressed importance of such development for Albania.

Speaking at a signing ceremony, Albanian Prime Minister Edi Rama noted that Albania offered resources, transparency and ensured justice between the government and foreign investors.

Rama noted that the presence of a multinational company like Shell in Albania was an additional reason for other international companies to see Albania as a country where everyone else could invest too.

The prime minister highlighted that planned investment were slated to have a major impact on the country's economy.

According to the prime minister, the company also has a social investment plan that includes investment in vocational education, health, road safety and supporting development of small businesses in the area.The Royal Dutch Shell announced the commencement of the hydrocarbon explorations in Shpirag-4 oil well.

Preliminary data show that cost of new operation is estimated at around 72 million U.S. dollars, with drillings at a depth of over 6,101 meters.Official statistics show that Albania has oil reserves of 220 million barrels and natural gas reserves of 5.7 billion cubic meters. (1 euro = 1.23 U.S. dollars)

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Total talks infrastructure construction for Azerbaijani gas field

Creation of the necessary infrastructure at Azerbaijan’s Absheron gas field in the Caspian Sea will begin in mid-2018, according to a presentation by Total, an operator of the field’s development.The presentation was made in Baku Feb. 20 at public hearings on the Environmental Impact Report of the drilling project.

The work envisages designing and laying an export pipeline as well as building a platform and connecting it with the infrastructure of the Oil Rocks deposit, according to the presentation.The work on both facilities will cover a period from mid-2018 until the end of 2019.

Total E&P Azerbaijan will act as an executor regarding the export pipeline, while the Azneft Production Union will act as an executor of the platform construction and its joining with the infrastructure of the Oil Rocks deposit.

The Israfil Huseynov pipe laying vessel or the "Azerbaijan" crane vessel, modernized as part of the Shah Deniz-2 project, will carry out the work on laying the export pipeline.

The processed and filtered sea water will be pumped into the reservoirs of the Oil Rocks deposit, and the pipeline will be cleaned every five years, according to the presentation.The platform will be assembled at a production site in Azerbaijan and then installed in the sea.

Earlier, SOCAR and Total signed a framework agreement on the main contractual and commercial principles regulating the program of the first phase development of the Absheron field.

The first phase of the field’s development envisages drilling of one well at a sea depth of 450 meters. The production will stand at 1.5 billion cubic meters of gas per year and these volumes will be used in Azerbaijan’s domestic market.

Absheron’s reserves are estimated at 326 billion cubic meters of gas and 108 million tons of condensate, according to the estimations of Total specialists.The Absheron project will be operated by JOCAP (Joint Operating Company Absheron Petroleum) (50 percent SOCAR, 50 percent Total).

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