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Aker Kvaerner wins evaporator contracts
approximately 370 000 barrels per day by 2005. Jacobs’ scope includes building Plants 21 and 32-5.
SASOL/QATAR AWARD US$675M CONSTRUCTION CONTRACT South Africa’s Sasol, along with its partner Qatar Petroleum (QP), have awarded a US$675 million engineering, procurement and construction (EPC) contract to Technip-Coflexip of Italy for the construction of the world’s largest and most advanced natural gas-to-liquid (GTL) plant. The new facility, ORYX GTL Ltd, is based in Ras Laffan Industrial City, Qatar, where the world’s largest single natural gas resource is located. QP and Sasol are sole partners in the development of the US$900 million ORYX GTL plant. The EPC contract also includes responsibility for the start-up and initial operation of the plant up to the performance test phase. The construction phase is expected to be completed within three years. The plant’s front-end engineering and design (FEED) package was prepared by Foster Wheeler UK.
NEW OIL DISCOVERY FOR PETROBRAS Petrobras has just discovered oil in Brazil’s Campos Basin, through the well 9MLL-3, drilled in a 980 m water depth, resulting in roughly a 3000 m depth, next to the East Marlim Field. The reserves of the new discovery are estimated in 150 million oil equivalent barrels, at 20 degrees API. Petrobras has already started studies to develop the commercial production of the new volumes discovered, possibly
Pump Industry Analyst
using its own production system in East Marlim, now being implemented. The operation of the East Marlim system is expected to start in 2006, with an estimated production for the new discovery of 140 oil barrels per day.
SHELL PLANS DEEP SEA DRILL IN TRINIDAD & TOBAGO Drilling is set to begin off the coast of Trinidad after oil was discovered near an exploration block on which Shell holds the permit. Encouraged by the discovery of oil just 50 kms west of its exploration block, Trinidad Shell Exploration & Production (TSEP) will begin drilling this year. A semi-submersible rig will be used to test the oldest section of the seabed ever drilled in Trinidad deep waters. Non-commercial quantities of gas were discovered when the block, off Trinidad’s eastern coast, was first drilled in 1999. The recent oil discovery inspired Shell to re-evaluate the site’s 3D seismic data using pioneering technology. The project is a joint venture with AGIP and the Petrotrin, the State Oil Co.
KERR-MCGEE ANNOUNCES 2003 CAPITAL PLAN Kerr-McGee Corp is budgeting approximately US$1 billion for capital expenditures and US$250 million in exploration expenses for 2003. Average daily oil and gas production is expected to be approximately 270 000 barrels of oil equivalent. The capital budget for 2003 oil and gas operations is US$860 million. Of this, approximately US$385 million is allocated to the Gulf of Mexico, US$170 million to the North Sea, US$200 million
to US onshore and US$105 million to other international projects. Capital expenditures for chemical operations are budgeted at approximately US$130 million for 2003.
GAS DISCOVERY IN BRUNEI DARUSSALAM A joint venture, involving TotalFinaElf, Shell and local partners, has made a significant gas and condensate discovery in offshore Block B in Brunei Darussalam. The discovery confirms the potential of the deep horizons of Block B. It was made at a vertical depth of around 4400 metres, below the currently producing gas and condensate reservoirs of the Maharaja Lela Jamalulalam field. Well MLJ106 struck a column of hydrocarbons of around 100 metres.
STATOIL AWARDS SNØHVIT CONTRACT TO DRAGADOS Snøhvit operator Statoil has selected the Spanish fabricator Dragados Offshore for the NKr1450 million contract for constructing and installing the project’s gas liquefaction plant on a prefabricated barge. The liquefaction plant is to be placed on a barge currently under construction at Spain's Izar Fene shipyard. Installation will take place at the Dragados facility in Cadiz. Once this work has been completed, the barge with the processing plant will be towed to Melkøya island near Hammerfest in northern Norway. This is scheduled for 2005. Snøhvit, located in the Barents Sea, is due to produce 5.7 billion standard cubic metres of gas per year, which will be converted to liquefied natural gas. Production is set to start in 2006.
PULP & PAPER AKER KVAERNER WINS EVAPORATOR CONTRACTS The Aker Kvaerner’s Pulp & Paper business is to upgrade evaporation plants in Brazil, Sweden and Portugal, under contracts worth more than 10 million. Aker Kvaerner will increase the capacity of the evaporation plant of the Klabin Paraná Papéis pulp mill in Monte Alegre, Brazil to 430 t/h of water. Start-up will be in July 2003. Cenibra, Celulose NipoBrasileira SA in Brazil has ordered a rebuild and capacity increase of its evaporation plant which will include Aker Kvaerner’s REVAPTM technology. Start-up will be in February 2004. Rottneros Vallvik, Sweden has placed an order for the supply and installation of three evaporation units and ancillary equipment. Start-up will be in September 2003. Meanwhile, Stora Enso’s CELBI mill in Portugal has placed an order with Aker Kvaerner for the supply and installation of a new evaporator unit. Start-up will be in October 2003.
UPM-KYMMENE CLOSES 2 PAPER MACHINES UPM-Kymmene Corp is closing its two oldest paper machines PM 3 and PM 4 at Blandin mill in Minnesota, effective immediately. The machines were originally built in 1931 and in 1963. The age and productive capacity of the two machines mean they are no longer competitive, irrespective of future investment. The total production capacity of the two machines
3
MARKET PROSPECTS
February 2003
SASOL/QATAR AWARD US$675M CONSTRUCTION CONTRACT South Africa’s Sasol, along with its partner Qatar Petroleum (QP), have awarded a US$675 million engineering, procurement and construction (EPC) contract to Technip-Coflexip of Italy for the construction of the world’s largest and most advanced natural gas-to-liquid (GTL) plant. The new facility, ORYX GTL Ltd, is based in Ras Laffan Industrial City, Qatar, where the world’s largest single natural gas resource is located. QP and Sasol are sole partners in the development of the US$900 million ORYX GTL plant. The EPC contract also includes responsibility for the start-up and initial operation of the plant up to the performance test phase. The construction phase is expected to be completed within three years. The plant’s front-end engineering and design (FEED) package was prepared by Foster Wheeler UK.
NEW OIL DISCOVERY FOR PETROBRAS Petrobras has just discovered oil in Brazil’s Campos Basin, through the well 9MLL-3, drilled in a 980 m water depth, resulting in roughly a 3000 m depth, next to the East Marlim Field. The reserves of the new discovery are estimated in 150 million oil equivalent barrels, at 20 degrees API. Petrobras has already started studies to develop the commercial production of the new volumes discovered, possibly
Pump Industry Analyst
using its own production system in East Marlim, now being implemented. The operation of the East Marlim system is expected to start in 2006, with an estimated production for the new discovery of 140 oil barrels per day.
SHELL PLANS DEEP SEA DRILL IN TRINIDAD & TOBAGO Drilling is set to begin off the coast of Trinidad after oil was discovered near an exploration block on which Shell holds the permit. Encouraged by the discovery of oil just 50 kms west of its exploration block, Trinidad Shell Exploration & Production (TSEP) will begin drilling this year. A semi-submersible rig will be used to test the oldest section of the seabed ever drilled in Trinidad deep waters. Non-commercial quantities of gas were discovered when the block, off Trinidad’s eastern coast, was first drilled in 1999. The recent oil discovery inspired Shell to re-evaluate the site’s 3D seismic data using pioneering technology. The project is a joint venture with AGIP and the Petrotrin, the State Oil Co.
KERR-MCGEE ANNOUNCES 2003 CAPITAL PLAN Kerr-McGee Corp is budgeting approximately US$1 billion for capital expenditures and US$250 million in exploration expenses for 2003. Average daily oil and gas production is expected to be approximately 270 000 barrels of oil equivalent. The capital budget for 2003 oil and gas operations is US$860 million. Of this, approximately US$385 million is allocated to the Gulf of Mexico, US$170 million to the North Sea, US$200 million
to US onshore and US$105 million to other international projects. Capital expenditures for chemical operations are budgeted at approximately US$130 million for 2003.
GAS DISCOVERY IN BRUNEI DARUSSALAM A joint venture, involving TotalFinaElf, Shell and local partners, has made a significant gas and condensate discovery in offshore Block B in Brunei Darussalam. The discovery confirms the potential of the deep horizons of Block B. It was made at a vertical depth of around 4400 metres, below the currently producing gas and condensate reservoirs of the Maharaja Lela Jamalulalam field. Well MLJ106 struck a column of hydrocarbons of around 100 metres.
STATOIL AWARDS SNØHVIT CONTRACT TO DRAGADOS Snøhvit operator Statoil has selected the Spanish fabricator Dragados Offshore for the NKr1450 million contract for constructing and installing the project’s gas liquefaction plant on a prefabricated barge. The liquefaction plant is to be placed on a barge currently under construction at Spain's Izar Fene shipyard. Installation will take place at the Dragados facility in Cadiz. Once this work has been completed, the barge with the processing plant will be towed to Melkøya island near Hammerfest in northern Norway. This is scheduled for 2005. Snøhvit, located in the Barents Sea, is due to produce 5.7 billion standard cubic metres of gas per year, which will be converted to liquefied natural gas. Production is set to start in 2006.
PULP & PAPER AKER KVAERNER WINS EVAPORATOR CONTRACTS The Aker Kvaerner’s Pulp & Paper business is to upgrade evaporation plants in Brazil, Sweden and Portugal, under contracts worth more than 10 million. Aker Kvaerner will increase the capacity of the evaporation plant of the Klabin Paraná Papéis pulp mill in Monte Alegre, Brazil to 430 t/h of water. Start-up will be in July 2003. Cenibra, Celulose NipoBrasileira SA in Brazil has ordered a rebuild and capacity increase of its evaporation plant which will include Aker Kvaerner’s REVAPTM technology. Start-up will be in February 2004. Rottneros Vallvik, Sweden has placed an order for the supply and installation of three evaporation units and ancillary equipment. Start-up will be in September 2003. Meanwhile, Stora Enso’s CELBI mill in Portugal has placed an order with Aker Kvaerner for the supply and installation of a new evaporator unit. Start-up will be in October 2003.
UPM-KYMMENE CLOSES 2 PAPER MACHINES UPM-Kymmene Corp is closing its two oldest paper machines PM 3 and PM 4 at Blandin mill in Minnesota, effective immediately. The machines were originally built in 1931 and in 1963. The age and productive capacity of the two machines mean they are no longer competitive, irrespective of future investment. The total production capacity of the two machines
3
MARKET PROSPECTS
February 2003