Page 15 - DMEA Week 28 2020

DMEA REFINING DMEA
McDermott to provide engineering for Azikel modular refinery
NIGERIA
The re nery will process up to 12,000 bpd of oil.
MCDERMOTT International (US) has agreed to provide further assistance to Azikel Petro- leum, a subsidiary of Nigeria’s Azikel Group, on the construction of a new modular re nery in Bayelsa State.
Earlier this week, McDermott said it had won a contract from Azikel Petroleum for engi- neering and procurement services related to the downstream project. Under the contract, the Houston-based service provider will provide detailed engineering and design services for the inside battery limits (ISBL) component of a modular re nery. Additionally, it will engineer and design all of the tagged items within the ISBL section.
McDermott said in a statement that it intended to carry out all engineering and design work on the project at its o ces in Mexico City and Tyler, Texas. It also reported that it would be turning to both US and international suppliers to acquire the necessary equipment for the re nery, which will have a throughput capacity of 12,000 barrels per day (bpd).
e US company put the value of the deal with Azikel at $50-250mn but did not pro- vide a speci c gure. It did note, though, that it had already performed other services for the Nigerian company on the same project, including but not limited to construction of crude oil feedstock tanks; site prepara- tion works, such as back lling and site rec- lamation; and installation of infrastructure
facilities, such as roads, drainage, security gates and a perimeter wall.
e most recent contract between the parties called for McDermott to provide extended front- end engineering design (FEED) services for the re nery. In the meantime, the service provider is also in the process of building several facilities that will support the plant’s operation, including terminal operator, maintenance and adminis- trative buildings. Additionally, it is construct- ing a 656-foot (200-metre) pier with shoreline protection that will accommodate deliveries of re nery modules and other equipment at the site in Obunagha-Gbara, a town in the Yenagoa area of Bayelsa State.
Azikel had originally hoped to bring the modular re nery on stream in 2018. However, it fell behind schedule and cancelled a contract with Houston-based Ventech for delivery of the ISBL section.
When nished, the plant will be able to turn out LPG, gasoline, diesel, jet fuel, kerosene and residual fuel oil. It will have a crude distillation unit as well as several secondary processing facil- ities – namely, a catalytic reformer, diesel hydro- treater, gasoline stabiliser, naphtha hydrotreater and naphtha splitter.
e facility is slated to process Bonny Light crude oil and gas condensate. It will receive feedstock from an adjacent gas-gathering facil- ity operated by Royal Dutch Shell (UK/Nether- lands.) ™
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