Page 12 - FSUOGM Week 01 2021

FSUOGM PROJECTS & COMPANIES FSUOGM

Gazprom Neft, Lukoil team

up in West Siberia

RUSSIA GAZPROM Neft has transferred a 50% stake in various conditions have been met, Lukoil said,
its Meretoyakhaneftegaz subsidiary to Lukoil in noting that its price tag covers the cession of
Russian producers a deal worth RUB52bn ($695mn), the compa- claims to Gazprom Neft’s loan worth RUB35bn.
have had to turn to nies announced in late December. Gazprom Neft had formerly wanted to work
increasingly difficult Meretoyakhaneftegaz controls a cluster of oil with Royal Dutch Shell at the fields, but the
and costly projects to and gas sites in the Nadym-Pur-Tazovsky area Anglo-Dutch major withdrew from the project
support their production of the Western Siberian region of Yamalo-Ne- in April 2020, citing the “challenging external
growth. nets. The transfer of a stake in the company environment.”
comes after Gazprom Neft and Lukoil agreed Russian producers have had to turn to
in September to form a 50:50 joint venture to increasingly difficult and costly projects to sup-
develop its fields, situated in the area surround- port their production growth, as easier-to-de-
ing the Tazovskoye oil and gas project. The assets velop fields reach maturity. But at the same time,
include the Severo-Samburgskoye and Mere- Western oil majors have been more reluctant to
toyakhinskoye fields, as well as the two Zapad- commit to projects because of sanctions, volatile
no-Yubileiny licence blocks. They are estimated oil market conditions and a shift in their focus
to hold more than 1bn tonnes (7.3bn barrels) of towards renewables and other energy transition
oil and around 500bn cubic metres of gas in ini- technologies. This has led to closer co-operation
tial in-place resources combined. between Russian oil companies that were previ-
The deal is set to be closed in 2022 after ously more reluctant to partner up. ™

DL E&C hired for $1.3bn at Baltic

chemicals complex

RUSSIA SOUTH Korean construction firm DL E&C has companies,” the head of DL E&C’s plant business
been hired to supply equipment to the world’s division, Yoo Jae-ho, commented. “We would
The South Korean largest polymer complex, due to be built in the strengthen our digital innovation and BIM-
firm said it had fended Russian Baltic port of Ust-Luga. based design ability to solidify our position in
off competition from The Baltic Gas Chemicals Complex (GCC) the expanding Russian market.”
advanced European is being developed by private Russian company The latest win comes after D E&C in March
companies. Rusgazdobycha and is due to go online in 2024. last year signed an interim deal worth $290mn
It will be served with feedstock supply from a to upgrade Gazprom Neft’s refinery in Moscow.
gas processing complex that Rusgazdobycha The Korean firm will be involved in building a
and state-owned partner Gazprom also want hydrocracker at a new deep refining complex at
to build in Ust-Luga. At full capacity, the chem- the site, with completion due in 2025.
icals complex will produce 3mn tonnes per year US contractor McDermott back in October
of polyethylene, 120,000mn tpy of butane and signed a letter of guarantee with Rusgazdobycha
50,000mn tpy of hexane. to provide engineering and procurement with
DL E&C landed the contract worth KRW1.6 Chinese partner China National Chemical Engi-
trillion ($1.3bn) for design and equipment neering and Construction Corporation Seven
procurement, it said. The South Korean firm (CC7) for the project’s ethane cracker. ™
has been involved in initial design work at the
project since December 2019, and it said it had
secured the award after “defeating advanced
European competitors” in a competition, “prov-
ing its technological prowess.”
The company said it was hopeful of landing
additional contracts in Russia in the future.
“This project is meaningful in that we won
a big order in Russia, a market regarded as a
high barrier to entry for Korean construction

P12 www. NEWSBASE .com Week 01 05•January•2022