Page 9 - MEOG Week 12 2023

MEOG PROJECTS & COMPANIES MEOG

Petrofac wins Oman engineering work

OMAN UK-BASED services company Petrofac has engineering and procurement services to com-
been chosen by Shell to undertake a new engi- plete Phase-1B of the Block-10 development,
neering and procurement services (EPS) project under Petrofac’s global enterprise framework
in Oman. agreement with Shell.
Petrofac said it would carry out a five-year According to Lahoud, the three newly
EPS contract for Shell’s Block-10 Mabrouk awarded contracts will be executed in-country
Phase 2 Project, which is located in the Al Wusta using Petrofac’s multi-disciplinary engineering
Governorate of Oman, around 400 km from the and project execution office in Muscat.
capital Muscat. Shell Integrated Gas Oman (operator,
The contract was awarded following a com- 53.45%), state oil firm OQ (13.36%) and the
petitive tender process and the scope of work Marsa Liquefied Natural Gas joint venture (JV)
includes well-pads for multiple wells, remote between TotalEnergies and OQ (33.19%) signed
manifold stations and connecting pipelines, a concession agreement to develop and produce
including water infrastructure for well develop- natural gas from Block-10 in December 2021.
ment, and a field operations base. Block 10 lies within the Greater Barik area in
Elie Lahoud, chief operating officer of Petro- central Oman and was previously part of the
fac’s engineering & construction business, said giant Block 6 concession.
that Petrofac had been operating in Oman for In January, the partners began gas production
more than 30 years, completing over 15 signifi- from the Mabrouk North-East field. Mabrouk
cant projects and creating $3.7bn of in-country North East was discovered by Petroleum Devel-
value during that time. opment Oman (PDO) in 2017.
He added: “We are delighted to continue our A year later, the company said that Mabrouk
support of the Sultanate’s energy industry and its was estimated to contain recoverable reserves of
Vision 2040 priorities.” 113bn cubic metres of gas and 112mn barrels of
The energy services provider also secured condensate. The area is also home to Mabrouk
two additional contracts to provide residual West.™

Leviathan partners boost valuation,

plan higher output, exports

ISRAEL THE partners in Israel’s giant offshore Levi- The partners have boosted the value of Levi-
athan gas field have placed a new value on the athan reserves to $12.5bn amid plans to build a
reservoir’s value following an updated report on third pipeline to the platform at a cost of $562mn
it status by Texas-based Netherland, Sewall and that will raise production capacity from the cur-
Associates (NSAI). rent 1.2 bcf (34 mcm) per day.
The new evaluation took into consideration Production at Leviathan began in Decem-
plans by the partners to build a new pipeline and ber 2019, with gas going to the domestic Israeli
increase production from Leviathan to 1.4bn market. The field now supplies gas to Jordan and
cubic feet (40mn cubic metres) by 2025. That led Egypt as well, and plans are being drawn up to
NSAI to classify a significant amount of the field’s install a floating LNG (FLNG) vessel at the site
conditional resources as reserves, according to a with a capacity to produce 4.5mn tonnes (6.5bn
NewMed Energy in a filing to the Tel Aviv Stock cubic metres) per year. Initial investment in the
Exchange, thus boosting the resource value. FLNG project is estimated to cost $100mn.
NewMed, formerly Delek Drilling, holds Discussions with Egypt have also taken place
45.3% in Leviathan, while Chevron Corpora- regarding the re-export of Israeli gas through
tion owns 39.66% and Ratio Oil Corporation one of Egypt’s two onshore LNG terminals. Last
has 15%. June, Israel, Egypt and the EU signed a memo-
Discovered in 2012, Levithan holds an esti- randum of understanding (MoU) addressing the
mated 22 trillion cubic feet (623bn cubic metres) shipment of Israeli LNG to Europe via Egypt.
of natural gas and is the largest in a number of Output and revenues have steadily increased.
natural gas discoveries made in the Israeli off- Leviathan produced 10.7 bcm in 2021 with reve-
shore by Houston-based Noble Energy, which nues of $1.9bn. In 2022, sales volumes amounted
was purchased by Chevron in 2020. to 11.4 bcm with earnings of $2.5bn.™

Week 12 22•March•2023 www. NEWSBASE .com P9