Page 11 - MEOG Week 16

MEOG PRoJeCts & ComPanies MEOG
Petrofac loses Dalma work from ADNOC
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ABU Dhabi’s ADNOC has terminated two con- tracts for Petrofac’s joint venture on the Dalma gas development worth $1.65bn.
UK-based Petrofac said the Petrofac Emir- ates venture’s engineering, procurement and construction (EPC) contracts had been ended, but did not give a reason for the cancellation. The decision to terminate comes just under two months since the work was awarded. Petrofac Emirates’ share of the work was $1.5bn.
The company added that it was “committed to working with ADNOC over the coming weeks to explore alternative options to deliver this project in a way that supports their strategic objectives within the current challenging environment.”
“Petrofac continues to progress execution of its remaining group backlog of around $7bn as planned and is still progressing with tendering for major contracts in Abu Dhabi. however, it anticipates this development may have an impact on the timing of their awards.”
A spokesperson for ADNOC said: “We informed Petrofac Emirates and Sapura Energy Berhad of our intention to terminate the Dalma EPC packages A and B, originally awarded in February 2020. “We took this decision together with our partners, as we continue to responsi- bly progress our projects while optimising our costs, driving performance, efficiency and value across our portfolio. “As far as the long lead item arrangements of these EPC packages are con- cerned, ADNOC will keep those in place. The remaining parts are expected to be issued again for tender.” ADNOC had announced the award of two contracts on the construction of offshore facilities for the Dalma project on February 18. Dalma is part of the Ghasha sour gas concession.
Work was awarded to Petrofac Emirates
and a joint venture of Petrofac and Malaysia’s Sapura Energy. The contracts were due to have been completed in 2022 and would have allowed Dalma to produce 340mn cubic feet (9.6mn cubic metres) per day of gas. At the time the work was awarded, ADNOC said 70% of the contracts’ value would flow into the local economy under its in-country value (ICV) programme.
The first contract covered EPC work on four offshore wellhead towers, pipelines and umbil- icals on the hair Dalma, Satah and Bu haseer fields. The second contract focused on gas con- ditioning facilities for gas dehydration, compres- sion and associated utilities in Arzanah Island, which is 80 km from the city of Abu Dhabi.
This decision comes shortly after Petrofac launched a redundancy programme which will reduce staff numbers by 20% as it seeks to cope with plunging oil prices, and any resulting losses of work. The Ghasha concession com- prises the hail, Ghasha, Dalma, Nasr, SARB, Bu haseer, Shuweihat and Mubarraz offshore sour gas fields in Abu Dhabi. ADNOC owns the majority stake in the concession, with Italy’s Eni, Germany’s Wintershall, Austria’s OMV and Russia’s Lukoil holding the remainder. Eni will review its projects in the Middle East, including deals with ADNOC, as it seeks to reduce capital spending due to the coronavirus (COVID-19) outbreak and the oil price crash, Fuad Krekshi, its executive vice-president for Middle East, said last month. Eni has a 25% stake in the Ghasha concession. The project had the potential to meet nearly 20% of the UAE’s gas demand by the second half of this decade, as well as produce more than 120,000 barrels per day (bpd) of oil and high-value condensates upon completion, ADNOC said in February.™
Several oilfields stop operating in Syria
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ThE Syrian Ministry of Oil and Natural Resources announced on Sunday that the elec- tricity network in the country would be affected after several oil wells stopped operating due to the security situation in the Badia area.
In a press statement released by the Syrian news agency, SANA, the Ministry said: “The recent increase of electricity rationing was the result of the security situation in the Badia, which caused the hayan and al-Shaer fields to stop operating and the release of a large quan- tity of gas that greatly affected the electricity network.”
The Ministry said it would follow up on the situation and return things back to normal and compensate for the lost supply.
Last week, the Ministry announced that oil facilities have been targeted in the central homs
province. The UK-based Syrian Observatory for human Rights had also talked about drone attacks on the facilities.
The Ministry previously reported that the attacks targeted an oil refinery located in the city of homs, a gas plant south of the central region, and the Al Rayyan gas station in the Badia.
In 2017, the regime regained control of the al-Shaer field in the eastern homs countryside. The regime and the Fifth Brigade, under the supervision of Russian forces, now control the gas fields in the Palmyra region in the homs countryside.
The Shaer line transfers some 2.5 million cu m/day of sales gas to the Ebla gas factory.
Ebla is located in the Central Syrian Gas Basin and includes the al-Shaer and Cherrife development areas.™
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