Page 13 - DMEA Week 08 2020

DMEA
NEWS IN BRIEF
DMEA
Mozambique: Total awards two LNG deals to Worley
Worley has been awarded two master service agreements (MSAs) by Total E&P Mozambique Area 1 (Total) to provide services to the Mozambique LNG project.
Under the MSAs, Worley will provide in- and out-of-country services, including engineering, consulting and specialist engineering for delivery of onshore and offshore (subsea) facilities.
The services will support the development of the new LNG facility.
The services will be executed by Worley’s local Mozambique operation with support from Worley’s global businesses, including Advisian. Worley has supported the LNG development, located on the Afungi peninsula in Cabo Delgado province, since gas was first discovered there in 2010.
Algeria restarts oil refinery
Algeria has restarted the Sidi Rezine oil refinery in Algiers after a modernisation project that has raised its annual output from 2.7mn to 3.645mn tonnes, state media reported on February 24, according to Reuters.
Algeria is a fuel importer but wants to start exporting gasoline next year and diesel in 2024 after upgrading its refineries,, state news agency APS said, quoting Sidi Rezine plant manager Hassen Boukhalfa. Sidi Rezine refinery was shut down in 2018 for modernisation work, undertaken by China Petrolum Engineering and Construction (CPECC). Algeria currently produces about 30mn tonnes of refined products each year and imports large quantities to meet growing domestic demand.
OPEC member Algeria’s gasoline output reached 2.7mn tonnes in 2019, against total domestic consumption of 4mn tonnes, Boukhalfa said. It wants to stop imports
this year and begin exporting in 2021 after completion of the upgrades at other refineries. The modernisation plan will also help to increase diesel production, paving the way for first exports in 2024.
BPGIC cancels 250,000-bpd refinery plant
BPGIC and Sahara Energy Resources have agreed to discontinue a joint development project under which Sahara would have installed a 250,000-b/d modular refinery in phases at BPGIC’s terminal in Fujairah, UAE.
Brooge Holdings Ltd. subsidiary Brooge Petroleum & Gas Investment Co. FZE
Week 08 28•February•2020
(BPGIC) and Sahara Energy Resources DMCC have mutually agreed to discontinue a joint development project under which Sahara would have installed a 250,000-bpd modular refinery in phases at BPGIC’s terminal in Fujairah, UAE, near the East coast port of Fujairah on the Gulf of Oman.
After conducting several technical studies over the past few months, BPGIC and Sahara decided to discontinue the joint development project due to their differing perspectives and visions for the refinery, BPGIC said on February 24.
In a separate February 24 release, however, BPGIC said it has entered into a new agreement with Al Brooge International Advisory LLC (BIA)—the current offtake customer for BPGIC’s Phase 1 oil storage and terminal development at Fujairah—under which BIA will build a 25,000-bpd refinery designed to produce low-sulfur fuel oil that complies with the International Marine Organisation’s (IMO) new regulations requiring ships to use marine fuels with a sulfur content below 0.5%.
As part of the new deal, BPGIC and BIA have agreed to move forward with finalizing technical and design feasibility studies for the newly proposed refinery—which would be operated by BPGIC—on the Phase 1 and Phase 2 land at BPGIC’s Fujairah site.
Kuwait begins operation at large heavy oil project
Kuwait has started operations at a heavy oil project – the country’s largest – as it looks
to raise production capacity to 4mn barrels per day by 2040. The project is located in the north of the country, the Kuwait Oil Company said in a statement, without providing additional details.
Kuwait, the fourth-largest producer within Opec, has been looking to develop the Ratqa field in the north, which was contracted to
oil services firm Petrofac in 2015. The KOC statement did not specify which field was being considered for development.
The $4.2bn (Dh15.4bn) engineering, procurement, and construction contract for the Ratqa field that was awarded to Petrofac is expected to boost production to 60,000 bpd in the first phase, with plans to double capacity eventually.
Kuwait, which is part of the Opec+ alliance to restrict production revised its earlier plans to raise production capacity to 4.75mn bpd by 2040 to 4mn bpd.
Earlier this month, the country and neighbouring Saudi Arabia agreed to re-start production at the Neutral Zone along their border. The onshore Wafra and offshore Khafji fields will reach their full capacity of 500,000 bpd by year-end, with exports expected to flow within three months.
The fields’ output of largely heavy, sour
crude could be welcome for the markets as a replacement for Iranian and Venezuelan oil, both of which are in short supply due to US sanctions.
Kuwait’s additional heavy oil output will be fed into the country’s planned 615,000 bpd Al Zour refinery, which will be the largest refinery in the Middle East when completed.
The refining complex, which is expected
to be commissioned in mid-2020, will supply 225,000 bpd of low-sulphur fuel oil to the domestic power sector and will also produce jet fuel, kerosene and naphtha feedstock for chemical plants. The new refinery will account for 43% of the country’s refining capacity once completed.
Nigeria to lead oil refining growth in Africa
Nigeria is set to lead refining capacity additions from planned and announced (new- build) projects in Africa by 2024, according
to data and analytics company GlobalData refinery 3613522 640Forty-three planned
and announced refineries are expected to
start operations in Nigeria during the period 2020–2024.
The company’s report, ‘Global Refining Industry Outlook to 2024 – Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Refineries ’, reveals that Nigeria would add 1.8mn barrels per day (bpd) of planned and announced crude oil refining capacity by 2024.
Of this, 1.1mn bpdcomes from the planned refineries, while the early-stage announced projects contribute the remaining 0.7mn bpd by 2024.
Adithya Rekha, oil and gas analyst
at GlobalData, commented, “Out of 64 upcoming refineries in Africa, a total of
43 planned and announced refineries are expected to start operations in Nigeria during the period 2020–2024. However, given the delays faced by new refineries in the country, including the Dangote refinery, it remains
to be seen how many of these refineries start operations by 2024.”
GlobalData expects South Africa to be the second-largest country in Africa in terms of planned and announced refining capacity additions. It is likely to add 445mn bpd of refining capacity by 2024. The Coega refinery accounts for most of the capacity additions in the country with 400,000 bpd. It is expected to start operations in 2022.
Egypt occupies third place in Africa with planned and announced refining capacity of 209,000 bpd by 2024. The Soukhna refinery is the largest upcoming refinery in the country with an expected refining capacity of 155,000 bpd. This planned refinery is likely to start operations in 2021.
w w w. N E W S B A S E . c o m
P13