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Alstom wins Algerian order
September 2003
WILLBROS UNIT SECURES EPC CONTRACT The Oman Construction Co, a Willbros Group operating unit, has won an engineering, procurement and construction (EPC) contract for multiple pipelines in the Lekhwair field area from the company’s long-standing client Petroleum Development Oman. The project involves five 16-inch pipelines totaling 88 kilometres in length. Engineering and procurement work is expected to begin immediately, with the construction phase starting in early 2004. The project is scheduled for completion in September 2004.
GAS CONTRACTS SIGNED FOR EAST CHINA SEA A consortium including CNOOC, Shell, Sinopec, Unocal East China Sea Ltd and Xihu Oil and Gas Operating Co is to explore, develop and market natural gas, oil and condensate in the East China Sea.
The project comprises three exploration and two development contract areas of the Xihu Trough covering approximately 22 000 sq kms. CNOOC Ltd will be the operator of all five contract areas and will establish the Xihu Oil and Gas Operating Co. The first development will be in Chunxiao, where offshore production facilities are expected to come on stream in mid-2005. Production is set to reach 2.5 billion cubic metres per year within two years. The production facilities will process natural gas, oil and condensate from wells to be drilled in the Chunxiao, Tianwaitian, Can Xue, and Duanqiao fields. A 350 km subsea gas pipeline will be laid to an onshore terminal in Ningbo, Zhejiang Province. The natural gas will be marketed jointly by the contract partners to users in East China. Construction of the Chunxiao production facilities has already started. The partners are discussing the exploration and development of the other contract areas.
residual dewatering, pipeline cleaning, pipeline swabbing, air drying, nitrogen-purging and gas-in commissioning.
HALLIBURTON COMPLETES EGYPTIAN PRE-COMM WORK
E&C INDUSTRY TACKLES GLOBAL CORRUPTION
Halliburton’s Energy Services Group has successfully completed the pre-commissioning phase of the East Gas Pipeline Project in Egypt for Egyptian Natural Gas Company (GASCO). The pipeline will be used to export gas to Jordan, Lebanon, Syria, Turkey and other European countries. The 36-inch, 268 km pipeline runs from El-Arish in Egypt to Aqaba in Jordan and is split into land and offshore sections. The 250 km land line extends from El-Arish to Taba and the 18 km offshore line runs from Taba to Aqaba. Pre-commissioning included fresh water flushing,
JACOBS WINS SUNCOR CLEAN FUELS CONTRACT A Jacobs Engineering Group Inc subsidiary company is to provide engineering and procurement services for the clean fuels project that Suncor Energy Inc is initiating at its refinery in Denver, Colorado. Officials did not disclose the value of the contract, but when Suncor Energy acquired the facility from ConocoPhillips in April this year, the company said that it intended to spend US$175 million– US$225 million between 2003 and 2006 to meet clean fuels legislation and to integrate Suncor sour crude blends into the refinery’s crude slate.
ENGINEERING & CONSTRUCTION
Leading members of the engineering and construction industry, who make up the World Economic Forum’s Governors for Engineering & Construction (E&C), have established a multinational task force to develop anticorruption principles to guide companies that participate in engineering and construction procurements around the world. Working closely with Transparency International, an independent anti-corruption organization with national chapters in more than 80 countries, and Professor Mark Pieth, chairman of the OECD’s Working Group on Bribery, the E&C governing body is
committed to developing industry-wide principles and practices that would result in a level playing field based on integrity, fairness and ethical conduct. It is hoped that strong anticorruption policies within the E&C industry will promote the principles of transparency, accountability and responsibility for the long-term benefit of all stakeholders.
POWER GENERATION ALSTOM WINS ALGERIAN ORDER Under a 123 million contract, Alstom is to build a 300 MW turnkey power plant for Sonelgaz SpA in F’Kirina, Algiers. Alstom’s scope of supply includes two GT13E2 gas turbines as well as the generators, the high voltage substation and the electro-mechanical auxiliaries. The French company will also provide the civil work, erection, commissioning and testing of the power plant. All the major components for this project are Alstom inhouse products. Construction work on this fast track project will start in September 2003 and the plant is scheduled to enter operation in October 2004.
NEW MEXICAN THERMAL PROJECT FOR SNC-LAVALIN SNC-Lavalin Constructors Inc is to design and construct a 60MW combined cycle thermal power plant in Farmington, New Mexico. Under a US$48 million contract with the Farmington Electric Utility System, Redmond, Washington-based SNC-Lavalin Constructors will provide engineering and
3
MARKET PROSPECTS
The 15-year loan will contribute 10% of the total cost of the project. The 782 km pipeline will be built by PARCO’s joint-venture Pak Arab Pipeline Co on a build own and operate basis. The project is designed to transport imported and locally refined petroleum products from Port Bin Qasimi to Mahmood Kot. It includes a pumping and terminal station at Bin Qasim with pipeline connection to the oil jetty unloading system; a 26-inch diameter pipeline from Bin Qasim to a terminal station at Mahmood Kot; and an intermediate terminal and pumping station at Shikarpur. Pipeline construction has already started, with commercial operation scheduled for August 2004.
Pump Industry Analyst
WILLBROS UNIT SECURES EPC CONTRACT The Oman Construction Co, a Willbros Group operating unit, has won an engineering, procurement and construction (EPC) contract for multiple pipelines in the Lekhwair field area from the company’s long-standing client Petroleum Development Oman. The project involves five 16-inch pipelines totaling 88 kilometres in length. Engineering and procurement work is expected to begin immediately, with the construction phase starting in early 2004. The project is scheduled for completion in September 2004.
GAS CONTRACTS SIGNED FOR EAST CHINA SEA A consortium including CNOOC, Shell, Sinopec, Unocal East China Sea Ltd and Xihu Oil and Gas Operating Co is to explore, develop and market natural gas, oil and condensate in the East China Sea.
The project comprises three exploration and two development contract areas of the Xihu Trough covering approximately 22 000 sq kms. CNOOC Ltd will be the operator of all five contract areas and will establish the Xihu Oil and Gas Operating Co. The first development will be in Chunxiao, where offshore production facilities are expected to come on stream in mid-2005. Production is set to reach 2.5 billion cubic metres per year within two years. The production facilities will process natural gas, oil and condensate from wells to be drilled in the Chunxiao, Tianwaitian, Can Xue, and Duanqiao fields. A 350 km subsea gas pipeline will be laid to an onshore terminal in Ningbo, Zhejiang Province. The natural gas will be marketed jointly by the contract partners to users in East China. Construction of the Chunxiao production facilities has already started. The partners are discussing the exploration and development of the other contract areas.
residual dewatering, pipeline cleaning, pipeline swabbing, air drying, nitrogen-purging and gas-in commissioning.
HALLIBURTON COMPLETES EGYPTIAN PRE-COMM WORK
E&C INDUSTRY TACKLES GLOBAL CORRUPTION
Halliburton’s Energy Services Group has successfully completed the pre-commissioning phase of the East Gas Pipeline Project in Egypt for Egyptian Natural Gas Company (GASCO). The pipeline will be used to export gas to Jordan, Lebanon, Syria, Turkey and other European countries. The 36-inch, 268 km pipeline runs from El-Arish in Egypt to Aqaba in Jordan and is split into land and offshore sections. The 250 km land line extends from El-Arish to Taba and the 18 km offshore line runs from Taba to Aqaba. Pre-commissioning included fresh water flushing,
JACOBS WINS SUNCOR CLEAN FUELS CONTRACT A Jacobs Engineering Group Inc subsidiary company is to provide engineering and procurement services for the clean fuels project that Suncor Energy Inc is initiating at its refinery in Denver, Colorado. Officials did not disclose the value of the contract, but when Suncor Energy acquired the facility from ConocoPhillips in April this year, the company said that it intended to spend US$175 million– US$225 million between 2003 and 2006 to meet clean fuels legislation and to integrate Suncor sour crude blends into the refinery’s crude slate.
ENGINEERING & CONSTRUCTION
Leading members of the engineering and construction industry, who make up the World Economic Forum’s Governors for Engineering & Construction (E&C), have established a multinational task force to develop anticorruption principles to guide companies that participate in engineering and construction procurements around the world. Working closely with Transparency International, an independent anti-corruption organization with national chapters in more than 80 countries, and Professor Mark Pieth, chairman of the OECD’s Working Group on Bribery, the E&C governing body is
committed to developing industry-wide principles and practices that would result in a level playing field based on integrity, fairness and ethical conduct. It is hoped that strong anticorruption policies within the E&C industry will promote the principles of transparency, accountability and responsibility for the long-term benefit of all stakeholders.
POWER GENERATION ALSTOM WINS ALGERIAN ORDER Under a 123 million contract, Alstom is to build a 300 MW turnkey power plant for Sonelgaz SpA in F’Kirina, Algiers. Alstom’s scope of supply includes two GT13E2 gas turbines as well as the generators, the high voltage substation and the electro-mechanical auxiliaries. The French company will also provide the civil work, erection, commissioning and testing of the power plant. All the major components for this project are Alstom inhouse products. Construction work on this fast track project will start in September 2003 and the plant is scheduled to enter operation in October 2004.
NEW MEXICAN THERMAL PROJECT FOR SNC-LAVALIN SNC-Lavalin Constructors Inc is to design and construct a 60MW combined cycle thermal power plant in Farmington, New Mexico. Under a US$48 million contract with the Farmington Electric Utility System, Redmond, Washington-based SNC-Lavalin Constructors will provide engineering and
3
MARKET PROSPECTS
The 15-year loan will contribute 10% of the total cost of the project. The 782 km pipeline will be built by PARCO’s joint-venture Pak Arab Pipeline Co on a build own and operate basis. The project is designed to transport imported and locally refined petroleum products from Port Bin Qasimi to Mahmood Kot. It includes a pumping and terminal station at Bin Qasim with pipeline connection to the oil jetty unloading system; a 26-inch diameter pipeline from Bin Qasim to a terminal station at Mahmood Kot; and an intermediate terminal and pumping station at Shikarpur. Pipeline construction has already started, with commercial operation scheduled for August 2004.
Pump Industry Analyst