Page 9 - FSUOGM Week 42 2019

FSUOGM COMMENTARY FSUOGM
The Hail & Ghasha Package 1 is said to include offshore drill centres, subsea pipelines and compression platforms, as well as 400km of subsea pipelines and 212km of subsea cables.
Technical bids were submitted in late March for two engineering, procurement and construc- tion (EPC) contracts tendered earlier this year for offshore and onshore work on the first devel- opment project to be carried out at the Ghasha Concession.
The block covers an area in the north-west said to contain hundreds of billion cubic metres of gas. The exploitation of Dalma field is envis- aged generating production of 3.1-3.6 bcm per year of gas by early next decade.
For the onshore package, offers were reported to have been received from China Petroleum Engineering & Construction Corp., South Korea’s Hyundai Engineering & Con- struction, Petrofac, Saipem with Athens-based Consolidated Contractors Co. (CCC), and Canada’s SNC Lavalin with the local Target Engineering.
The contract includes new gas dehydration and condensate treatment units, inlet facilities, a gas booster and other associated infrastructure at Arzanah Island.
Bidders for the offshore contract are thought to include McDermott, NPCC, Petrofac, Saipem and the local Valentine Maritime, for a deal cov- ering three new wellhead platforms and the modification of existing topsides plus pipelines and cabling.
US-based KBR is the project management consultant and TechnipFMC is the front-end engineering and design (FEED) contractor.
The joint development of the Ghasha and Hail fields is anticipated to produce 10.3 bcm per year of gas. KBR is again the PMC contrac- tor, while compatriot Bechtel is carrying out the FEED.
Those believed to have received the bid doc- uments include Greece’s Archirodon, India’s Larsen & Toubro, the US’ McDermott, Abu Dhabi government-affiliated National Petro- leum Construction Co. (NPCC), the UK’s Pet- rofac, Rosetti Marino and Saipem, both Italian, and UK-based TechnipFMC.
Early contracts on the scheme were awarded last year under a process overseen by Oxy and OMV – with the US’ KBR winning the PMC, TechnipFMC selected for the FEED and NPCC let an engineering, procurement, construction and installation (EPCI) job covering four well- head jackets to enable initial drilling work to proceed.
On August 21, Aker reported that it had been awarded a $78mn contract by ADNOC to supply umbilicals for the Dalma offshore gas project.
It said that the scope of the deal included more than 100km of four steel tube umbili- cals. “The umbilical system will provide power supply, communication services and chemical
injection fluids [and] will connect the subsea equipment to three new wellhead platforms and link the topside equipment located on the offshore control platform to equipment located onshore,” the Norwegian firm disclosed.
The latest awards are further evidence of ADNOC’s emphasis on developing the conces- sions it has finalised over the past 18 months and EPC contractors are sure to be queuing up for more work.
Ruwais refining intent
In related news, ADNOC said separately last week that it wanted to expand its ADNOC Refin- ing arm and increase capacity to 1.5mn barrels per day (bpd).
In January, Eni and OMV signed share pur- chase agreements to acquire interests of 20% and 15% respectively in ADNOC Refining for a com- bined total of around $5.8bn after the deduction of year-end 2018 net debt. ADNOC retains 65%.
However, this is currently limited to existing refineries, which have a combined capacity of 925,000 bpd.
Speaking to Reuters, Rizwan Khalil Sheikh, senior vice-president, Downstream Strategy and Business Development, said: “We are partners with OMV and Eni: obviously our desire would be to expand together for the new refinery; at the same time we are so committed to this expansion that if we are not able to align with them, then we may chose to progress on our own.”
The January deal valued ADNOC Refining at around $19.4bn and covered the 837,000 bpd Ruwais refining complex in the Western Region and an ageing 85,000 bpd facility near Abu Dhabi City, as well as a 1,900-km pipeline network. The trio also agreed to establish a physical and derivatives trading JV incorpo- rated at Abu Dhabi Global Markets for exports of the refineries’ products, which account for around 70% of output, with the rest deployed domestically.
ADNOC intends to double its refining capac- ity and triple petrochemical output by 2025.
Sheikh said, though, that part of the expan- sion would see the refinery near Abu Dhabi City ‘mothballed’, with Ruwais seen as the home of the emirate’s refining sector.
He said: “All of our refineries are at Ruwais, we do have one refinery which is in Abu Dhabi City itself. Because of its proximity to urban areas we are looking to mothball that. That’s why despite the expansion we will get 1.5mn bpd.”
He added that in addition to expanding the existing Ruwais refinery, ADNOC planned to build a new 400,000-600,000 bpd unit, with the first expansion phase coming in 2024. Sheikh concluded by saying that the Ruwais refinery would also be upgraded to allow it to process additional crude grades where it is currently limited to murban. ™
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