- Email: [email protected]
Aker Kvaerner to proceed with Chilean project
January 2005
MARKET PROSPECTS
Pump Industry Analyst
field, the UK’s largest undeveloped gas field, due to start-up late in 2005. The company is also in the process of tendering a range of major long term supply contracts to support its North Sea operations. These contracts account for approximately US$400 million per year of the overall spend. They include contracts for well services, currently under tender; for sub-sea construction; inspection, repair and maintenance which will be awarded in the coming months; and for engineering, maintenance and modifications services, which were awarded in June 2004 to Wood Group and KBR Production Services.
ICA FLUOR TO BUILD PEMEX REFINING COMPLEX ICA Fluor has signed a US$690 million contract for the engineering, procurement and construction services for Package II of Pemex Refinación’s Lázaro Cárdenas refining complex in Minatitlán, Veracruz, México. Package II includes three main work areas: auxiliary services, a water treatment plant and works to integrate all services of the refinery. The project is scheduled to be completed by the end of 2008.
CHEVRONTEXACO FINDS OIL IN CAMBODIA Chevron Overseas Petroleum (Cambodia) Ltd (COPCL) has discovered oil in four exploration wells in offshore Cambodia Block A. Oil pay logged in the wells ranges from 41 ft to 139 ft. Analysis of samples indicates the oil is 44 degree API crude. The 6278 sq km block, encompassing the Khmer Basin with water depths averaging 240 ft,
4
was awarded to COPCL and its partners in March 2002. The drilling program will conclude with one more exploration well that is expected to be completed in February 2005.
PULP & PAPER METSO TO DELIVER EQUIPMENT TO MYLLYKOSKI Metso Paper will supply almost 40 million worth of equipment for groundwood pulp and paper making processes to Myllykoski Group’s paper mills in Germany, Finland and the USA. Metso Paper will rebuild MD Plattling’s PM 11 in Bavaria, Germany. The rebuild of the paper machine will comprise a new headbox, a wire section, rebuild of the press section as well as modifications of the dryer section. The delivery will also include auxiliary equipment for the machine sections to be rebuilt. Metso will also renew the groundwood department of the mill. The rebuilt PM 11 will start up in December 2005. Metso Paper will also deliver the main equipment of a peroxide bleaching plant for PM 6-7 of Myllykoski Paper’s Anjalankoski Mill in Finland. In addition to the main equipment, the order includes preparation of the bleaching chemicals as well as Metso Automation’s process control system. The plant will be ready for production in early 2006. Metso Paper will also expand Madison Paper Industries’ pressure groundwood plant in Madison, Maine, USA. The delivery will include a new grinder and the extension of Metso Automation’s process control system. The project is scheduled to be delivered in October 2005.
SHIPBUILDING HHI TO BUILD WORLD’S LARGEST CONTAINERSHIPS Hyundai Heavy Industries Co Ltd (HHI) has secured a contract to build four 10 000 TEU ultra-large containerships from Chinese shipping company Cosco. This is the world’s largest containership ever to be built. The ordered vessels will have the capacity to carry 10 000 units of 20 feet containers and will measure 349 m in length, 45.6 m in width, and 27.2 m in depth. Each ship will be fitted with a 94 000-horsepower engine for a service speed of 25.8 knots or 48 km/h. The ships are expected to be delivered in 2008. According to HHI, shipowners want bigger and speedier containerships to remain competitive. In order to meet this market trend, HHI has already completed the design development of a 12 000 TEU containership. HHI has also received orders for two 8600 TEU containerships from Germany’s Hapag Lloyd and for one 35 000 cubic metre LPG carrier from Orix of Japan.
MINING FW/ SNC-LAVALIN TO DEVELOP GORO NICKELCOBALT PROJECT Foster Wheeler (Qld) Pty Ltd, in a joint venture with SNC-Lavalin Australia Pty Ltd, is to provide engineering, procurement and construction management services for Goro Nickel SA’s US$1.878 billion Goro nickel-cobalt project in New Caledonia.
The CEG joint venture will provide services as part of Goro Nickel’s integrated team, led by Inco Australia Management Pty Ltd. The A$200 million contract follows CEG’s involvement in a comprehensive study to re-examine the project, which identified value improvement measures and provided detailed engineering to optimize project capital costs. The Goro mine will be designed for an estimated annual capacity of 60 000 tonnes of nickel and over 4000 tonnes of cobalt. Based on the final results of the project review, construction should begin in early 2005 and be carried out over a period of approximately 35 months. Initial production is estimated to begin in September 2007.
AKER KVAERNER TO PROCEED WITH CHILEAN PROJECT RioChilex SA has contracted Aker Kvaerner to undertake the engineering, procurement and construction management for the development of the Spence copper project in Chile in a US$50 million contract. The Spence project will develop the copper ore deposit located in Chile’s Region II, near Calama in northern Chile. The project includes an open pit mine, crushing, conveying, dynamic heap leaching, dump leaching, solvent extraction and electrowinning facilities. Consistent with the corporate goals of both BHP Billiton and Aker Kvaerner, an objective for this project will be zero harm for people, the environment and the community. Aker Kvaerner was awarded the initial work in April 2003 which included a revision of the existing feasibility study including several trade-off studies.
MARKET PROSPECTS
Pump Industry Analyst
field, the UK’s largest undeveloped gas field, due to start-up late in 2005. The company is also in the process of tendering a range of major long term supply contracts to support its North Sea operations. These contracts account for approximately US$400 million per year of the overall spend. They include contracts for well services, currently under tender; for sub-sea construction; inspection, repair and maintenance which will be awarded in the coming months; and for engineering, maintenance and modifications services, which were awarded in June 2004 to Wood Group and KBR Production Services.
ICA FLUOR TO BUILD PEMEX REFINING COMPLEX ICA Fluor has signed a US$690 million contract for the engineering, procurement and construction services for Package II of Pemex Refinación’s Lázaro Cárdenas refining complex in Minatitlán, Veracruz, México. Package II includes three main work areas: auxiliary services, a water treatment plant and works to integrate all services of the refinery. The project is scheduled to be completed by the end of 2008.
CHEVRONTEXACO FINDS OIL IN CAMBODIA Chevron Overseas Petroleum (Cambodia) Ltd (COPCL) has discovered oil in four exploration wells in offshore Cambodia Block A. Oil pay logged in the wells ranges from 41 ft to 139 ft. Analysis of samples indicates the oil is 44 degree API crude. The 6278 sq km block, encompassing the Khmer Basin with water depths averaging 240 ft,
4
was awarded to COPCL and its partners in March 2002. The drilling program will conclude with one more exploration well that is expected to be completed in February 2005.
PULP & PAPER METSO TO DELIVER EQUIPMENT TO MYLLYKOSKI Metso Paper will supply almost 40 million worth of equipment for groundwood pulp and paper making processes to Myllykoski Group’s paper mills in Germany, Finland and the USA. Metso Paper will rebuild MD Plattling’s PM 11 in Bavaria, Germany. The rebuild of the paper machine will comprise a new headbox, a wire section, rebuild of the press section as well as modifications of the dryer section. The delivery will also include auxiliary equipment for the machine sections to be rebuilt. Metso will also renew the groundwood department of the mill. The rebuilt PM 11 will start up in December 2005. Metso Paper will also deliver the main equipment of a peroxide bleaching plant for PM 6-7 of Myllykoski Paper’s Anjalankoski Mill in Finland. In addition to the main equipment, the order includes preparation of the bleaching chemicals as well as Metso Automation’s process control system. The plant will be ready for production in early 2006. Metso Paper will also expand Madison Paper Industries’ pressure groundwood plant in Madison, Maine, USA. The delivery will include a new grinder and the extension of Metso Automation’s process control system. The project is scheduled to be delivered in October 2005.
SHIPBUILDING HHI TO BUILD WORLD’S LARGEST CONTAINERSHIPS Hyundai Heavy Industries Co Ltd (HHI) has secured a contract to build four 10 000 TEU ultra-large containerships from Chinese shipping company Cosco. This is the world’s largest containership ever to be built. The ordered vessels will have the capacity to carry 10 000 units of 20 feet containers and will measure 349 m in length, 45.6 m in width, and 27.2 m in depth. Each ship will be fitted with a 94 000-horsepower engine for a service speed of 25.8 knots or 48 km/h. The ships are expected to be delivered in 2008. According to HHI, shipowners want bigger and speedier containerships to remain competitive. In order to meet this market trend, HHI has already completed the design development of a 12 000 TEU containership. HHI has also received orders for two 8600 TEU containerships from Germany’s Hapag Lloyd and for one 35 000 cubic metre LPG carrier from Orix of Japan.
MINING FW/ SNC-LAVALIN TO DEVELOP GORO NICKELCOBALT PROJECT Foster Wheeler (Qld) Pty Ltd, in a joint venture with SNC-Lavalin Australia Pty Ltd, is to provide engineering, procurement and construction management services for Goro Nickel SA’s US$1.878 billion Goro nickel-cobalt project in New Caledonia.
The CEG joint venture will provide services as part of Goro Nickel’s integrated team, led by Inco Australia Management Pty Ltd. The A$200 million contract follows CEG’s involvement in a comprehensive study to re-examine the project, which identified value improvement measures and provided detailed engineering to optimize project capital costs. The Goro mine will be designed for an estimated annual capacity of 60 000 tonnes of nickel and over 4000 tonnes of cobalt. Based on the final results of the project review, construction should begin in early 2005 and be carried out over a period of approximately 35 months. Initial production is estimated to begin in September 2007.
AKER KVAERNER TO PROCEED WITH CHILEAN PROJECT RioChilex SA has contracted Aker Kvaerner to undertake the engineering, procurement and construction management for the development of the Spence copper project in Chile in a US$50 million contract. The Spence project will develop the copper ore deposit located in Chile’s Region II, near Calama in northern Chile. The project includes an open pit mine, crushing, conveying, dynamic heap leaching, dump leaching, solvent extraction and electrowinning facilities. Consistent with the corporate goals of both BHP Billiton and Aker Kvaerner, an objective for this project will be zero harm for people, the environment and the community. Aker Kvaerner was awarded the initial work in April 2003 which included a revision of the existing feasibility study including several trade-off studies.