ADCO evaluate offers for NEB-3 Onshore EPC contract

The United Arab Emirates (UAE) Abu Dhabi Company for Onshore Operations (ADCO) is currently evaluating the offers for the third phase of the North East Bab (NEB-3) project onshore Abu Dhabi.

As the other projects Upper Zakum, Umm Al-Lulu or Al-Nasr, NEB-3 is part of the giant upstream projects in Abu Dhabi to help the UAE to meet their targeted quotas of production in 2018.

In line with the other producing countries sitting at the OPEC, the goal is for each member to increase its production of crude oil so that the OPEC countries together can sustain their 40% market share globally.

In that perspective, Abu Dhabi is expected to reach 3.5 million barrels per day (b/d) in 2018.

Considering that the crude oil production increase must begin with compensating the natural decline of the maturing fields, such a goal represents a major effort for the producing countries.

All the companies of the Abu Dhabi National Oil Company (ADNOC) are involved in this program where ADCO is expected to contribute in ramping up its current production of 1.4 million b/d to 1.8 million b/d by 2018.

Within ADCO assets portfolio,  the third phase of North East Bab is expected to bring 110,000 b/d additional output.

Located less than 50 kilometers southwest of Abu Dhabi City, NEB lies along the shore line with onshore and offshore oil and gas fields.

Onshore, NEB includes the Rumaitha and Shanayel oil fields.

Offshore, NEB relies on the Al-Dabbiya oil field.

In between these fields, the coast line area is considered by Abu Dhabi Authorities are environmental sensitive,.

ADCO to phase up Onshore – Offshore NEB-3 project

Since the development of the onshore part and offshore portion of NEB-3 had to be split anyway, ADCO decided to phase up the project and the organize the call for tender separately for the onshore and offshore packages of the NEB-3 project.

For the development of Al-Dabbiya as part of NEB-3 Offshore project, ADCO is still evaluating offers for the front end engineering and design (FEED) work, while Technip completed the FEED for the Rumaitah and Shanayel onshore fields development project.

In the meantime ADCO awarded the project management consultancy (PMC) contract to Mott MacDonald in 2012.

From the 13 companies qualified by ADCO for Onshore NEB-3 engineering, procurement and construction (EPC) contract, 10 submitted a technical and commercial offer.

ADCO is currently evaluating these offers in order to make a decision at the end of 2013 or early 2014.

If ADCO is still willing to reach its production goal by 2018, it will have to move the NEB-3 project into the execution phase without any delay.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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Oman Oil and IPIC to award Duqm Refinery FEED soon

The national Oman Oil Company (Oman Oil or OOC) and the Abu Dhabi sovereign founds International Petroleum Investment Company (IPIC) are reaching the final evaluation stage of the commercial and technical bids submitted by international engineering companies to carry out the front end engineering and design (FEED) of the Duqm Refinery project in the center region of Oman.

In June 2012 Oman Oil and IPIC formed a 50/50 joint venture called Duqm Refinery and Petrochemical Industries Company (DRPIC) to support one of the largest project in the Sultanate of Oman.

In a context of unrest in some North Africa and Middle-East countries, Oman is keen to ensure a sustainable economical development across all the country and especially in the regions with the less industries.

Located in the Al-Wusta Governorate on the west coast of the Sultanate along the Gulf of Oman, Duqm is so far living from a local fishing activity.

In selecting this small city to build a $6 billion capital expenditure refinery and petrochemical complex, Oman expects to balance its development between the north and the south in taking benefit on the lengthy treat on the Strait of Hormuz to export crude oil from the Gulf countries.

The Duqm Refinery project starts with accommodating a special economical zone (SEZ).

The refinery should have a capacity of 230,000 barrels per day (b/d) of crude oil.

This crude oil should be imported from the neighboring countries.

Only five bidders for Duqm Refinery FEED contract

The purpose is to produce refined products for the domestic market or export and to provide naphtha as feedstock for the petrochemical complex, to be added in a second phase.

Because of its intense trading activities to import crude oil and export refined products or even petrochemical products in the future, the Duqm refinery will be equipped with storage capacities among the largest in the world.

In 2012, OOC and IPIC had awarded the project management consultancy (PMC) contract to Stone & Webster acquired since by Technip in France.

With the support of the PMC, Oman Oil and IPIC qualified eight engineering companies to be invited to bid (ITB) for the front end engineering and design (FEED) of the Duqm Refinery.

Out of these eight companies, five returned a tender.

The technical bids were submitted on the first half on the year while the commercial bids were following in August.

Since then this FEED contract for the Duqm Refinery should have been awarded, but the compatibility of these technical offers with the potential licenses to be selected in parallel is taking more time than expected. 

With this FEED contract to be sanctioned on early 2014 to one of the bidders, Oman Oil and IPIC must admit that the Duqm Refinery project should start commercial operations in 2018 at the earliest instead of 2017 as previously planned. 

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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BP, ExxonMobil, Shell, Total in concessions race

In 2013, the historical international oil companies (IOCs) BP from UK, ExxonMobil from USA, Statoil from Norway, Partex from Portugal and Total from France have been racing  to at least preserve and hopefully extend in 2014 their respective concessions rights in the onshore fields of Abu Dhabi shared in joint venture with the national Abu Dhabi National Oil Company (ADNOC) in the United Arabe Emirates (UAE).

Abu Dhabi is by far the oil and gas richest Emirate within the seven emirates community of the UAE.

With proven reserves of 98 billion barrels of crude oil and 214 trillion cubic feet (tcf) of natural gas, the UAE stand in the fifth position for the oil and forth position for the gas in the Middle East by proven reserves.

The quality of these reserves and the stability of the country, the second largest economy in the region, put its concession under the spot lights for all the oil and gas companies.

These 75 years onshore concessions will end up in January 2014, so that ADNOC is currently evaluating the bids submitted by the invited companies to take over the new concessions.

The new concessions will take affect on January 2015.

The bidders had the options to call for 5% or 10% share while ADNOC should retain at least 60%.

Most of the future developments will be related to mature fields or high sulfur content gas and unconventional oil and gas reserves. 

Therefore the expertise and technology will count on ADNOC decision, beyond the financial and political aspects.

So new companies such as Statoil or Wintershall should take their stake of the cake beside the re-elected majors among which, BP, ExxonMobil, Shell and Total should stand up again.

ADCO evaluate offers for NEB-3 Onshore EPC contract

The United Arab Emirates (UAE) Abu Dhabi Company for Onshore Operations (ADCO) is currently evaluating the offers for the third phase of the North East Bab (NEB-3) project onshore Abu Dhabi.

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 IPIC qualified bidders for Fujairah Refinery Phase-1

The Abu Dhabi-based International Petroleum Investment Company (IPIC) is preparing the call for tender for the engineering, procurement and construction (EPC) contractof the Fujairah Refinery Phase-1 in the United Arab Emirates (UAE).

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ADCO to invest $1 billion in Shahil, Qusahwira, Mender

Abu Dhabi Company for Onshore Oil Operations (ADCO) is activating the South East Full Field Development (FFD) project related to Asab Sahil, Qusahwira and Mender crude oil fields in the southeast of the United Arab Emirates (UAE).

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Dana reached agreement with Sharjah Emirate on Zora

The Sharjah-based private company Dana Gas (Dana) managed to reach an agreement with the authorities of the Sharjah and Ajman Emirates in the United Arab Emirates (UAE) regarding the offshore development of the Zora gas  field in the Sharjah Western Offshore concession.

In 2008, Dana was awarded by Sharjah Emirate a 25 years concession agreement to complete the exploration and develop a block of 1,000 square kilometers offshore the west coast of the Emirate.

>>> More Information

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Emirates LNG to replace FSRU by land-based terminal

The Abu Dhabi-based companies Mubadala Petroleum (Mubadala) and the International Petroleum Investment Company (IPIC) have decided to stop the just starting first phase of the Emirates LNG project in Fujairah, United Arab Emirates (UAE), to rethink the whole concept of this liquefied natural gas (LNG) import and regasification terminal.

Originally designed by the French engineering company Technip, the Emirates LNG project was intended to be developed in two phase:

 – Phase-1: Floating storage and regasfication unit (FSRU)

 – Phase-2: Landed-base regasification and storage terminal

In July 2013, Mubadala and IPIC had awarded the engineering, procurement and construction (EPC) contract for the Emirates LNG Phase-1 to the US-based company Excelerate Energy (Excelerate).

To deliver the FSRU corresponding to this first phase, Excelerate had planned to allocate one of the eight units currently in construction at the Daewoo Shipbuilding and Marine Engineering (DSME) shipyard in South Korea.

According to these FSRU units work in progress, Excelerate should have been able to deliver the Emirates LNG vessel mid 2015.

In the Emirates LNG consortium, Mubadala and IPIC share 50/50 the working interests whereas Mubadala is the Abu Dhabi Sovereign Wealth and IPIC and Abu Dhabi state-owned company.

This concentration of interests coming from Abu Dhabi into a Fujairah project is motivated by the reliance of the Abu Dhabi Emirates economy on the Strait of Hormuz.

With Fujairah giving direct access to the Gulf of Oman and thus to the Indian Ocean without depending from the Strait of Hormuz, Abu Dhabi secures its export of crude oil but also its import of natural gas.

Mubadala and IPIC to retender Emirates LNG in 2014

Abu Dhabi is importing gas from Qatar and needs alternative source of supply to feed its power generation and water desalination facilities and continue to boost its oil production and petrochemical sector.

Because of the increasing threat on the Strait of Hormuz through the tension with Iran, Abu Dhabi had decided to develop its Emirates LNG project on fast track.

Despite all the additional capital expenditure, Mubadala and IPIC in charge of the project decided to phase it with this FSRU option that could guaranty to be in operations in 2015.

Then Mubadala and IPIC had more time to build the second phase in concrete buildings in an adjacent site of the Fujairah combined power generation and water desalination facilities.

The FSRU and land-based terminal were designed with total capacity of 1.2 million cubic feet per day (cf/d) of gas or 9 million tonnes per year (t/y) of LNG.

In the recent context where the USA resume discussions with Iran in the perspective of relaxing tensions in the Gulf, Abu Dhabi may have considered that the degree of urgency that has led to design and build the Emirates LNG project in two phases including the FSRU was not longer so relevant.

Therefore, Mubadala and IPIC are now working to design and build this Emirates LNG project in Fujairah in a single phase, all grounded.

In that perspective, Mubadala and IPIC will invite all the engineering companies in competition for the Fujairah Emirates LNG phase-2 to retender for the whole project in 2014.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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Indorama takes seat in Tacaamol Al-Gharbia Complex

The Thai chemical company Indorama Ventures (Indorama) and the local Abu Dhabi National Chemicals Corporation (ChemaWEyaat) signed an agreement to establish the joint venture Abu Dhabi Chemicals Integration Company (Tacaamol) to design and build the first phase of the Madeenat ChemaWEyaat Al Gharbia (MCAG) project in the Western Region of Abu Dhabi, along the boarder of Saudi Arabia. 

For some years, the Emirates of Abu Dhabi is working to balance its upstream activities with the added value generated by the downstream sector in expanding its petrochemicals capacities.

In 2008, Abu Dhabi Emir established ChemaWEyaat as a joint venture between Abu Dhabi National Oil Company (ADNOC), the Abu Dhabi Investment Council and the International Petroleum Investment Company (IPIC) in order to channelize the best resources from the upstream side toward the petrochemical sector.

At that time Abu Dhabi was targeting to invest up to $25 billion capital expenditure in the giant Madeenat ChemaWEyaat Al-Gharbia Master Planning project.

As Tacaamol means integration, Abu Dhabi has conceived the Madeenat ChemaWEyaat Al-Gharbia Master Planning project as an integrated petrochemical complex similar to Sadara in Saudi Arabia.

If integration favors the process optimization and related costs, it also adds complexity in the design and construction pushing forward the expected date of first production.

So ADNOC and IPIC decided to split the Madeenat ChemaWEyaat Al-Gharbia Master Planning project in three phases.

As a first phase, the Madeenat ChemaWEyaat Al-Gharbia (MCAG) project should require $10 billion capital expenditure.

This first phase MCAG will itself be also phased up in a manageable way and in respect with the different partnerships required by ChemaWEyaat to licence the best processes with international chemical companies.

In that respect the agreement signed between Indorama and ChemaWEyaat to create the joint venture Tacaamol is providing the first stone to the MCAG project.

Foster Wheeler won PMC for Tacaamol Aromatics

In this Tacaamol joint venture, ChemaWEyaat and Indorama will share the working interests such as:

 – ChemaWEyaat 51% is the operator

 – Indorama 49%

For this first phase of the MCAG project, ChemaWEyaat and Indorama intends to build through their Tacaamol joint venture an aromatics plant including:

 – 1.4 million tonnes per year (t/y of paraxylene (PX)

 –  500,000 t/y of benzene.

 – Petrochemicals tank farm

 – Export jetty

In 2012, ChemaWEyaat had selected Foster Wheeler to provide the project management consultancy (PMC) services for the MCAG project.

In September 2013, ChemaWEyaat had mandated CH2M Hill to carry out the front end engineering and design (FEED) work of the Madeenat ChemaWEyaat Al-Gharbia project.

With Indorama joint venture, ChemaWEyaat is partnering with a polyester global leader producing PET and PTA all over the world.

ChemaWEyaat and Indorama are planning to invest $1 billion capital expenditure in this Tacaamol Aromatics project as a first phase of the Madeenat ChemaWEyaat Al-Gharbia (MCAG) project to come on stream in 2020.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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UAE to lead bio-fuel technologies in the Gulf countries

Petrixo Oil & Gas (Petrixo) from Dubai and a consortium made of Etihad Airways (Etihad), Abu Dhabi Oil Refining Company (Takreer) and Masdar Institute of Science and Technology from Abu Dhabi multiply initiatives in the United Arab Emirates (UAE) to take the lead of the bio-fuel technologies in the Middle-East region.

In January 2014, Etihad, Takreer and Masdar supported by the US aircraft manufacturer Boeing and the French Total major companies, performed a 45 minutes flight with a Boeing 777 powered by local bio-jet fuel.

The purpose of this exercise was to highlight the local capability of the key players along the whole supply chain to grow raw materials and refine them in the UAE in order to meet the qualifications required for aviation jet fuel.

The bio-oil was produced from a selection of salt-tolerant plants that can grow up in the UAE.

Then Total and Takreer worked together to refine this locally produced bio-oil in Takreer refinery.

This initiative is part of Masdar-led  Sustainable Bioenergy Research Consortium innovation program.

Through this program, Masdar, Boeing, Etihad, Takreer and Total are researching the most prolific plants and optimized bio-technologies to grow them up in the Middle-East environment to produce aviation quality bio-fuel.

For the local Authorities in the UAE, the goal is run all their fleets with bio-fuel in reducing by 50% the carbon dioxide emission along the whole cycle compared with conventional fossil fuel.

In long term, Abu Dhabi is preparing the transition of its economy for the after fossil fuel era.

Petrixo to invest $800 million in Fujairah bio-fuel refinery

In Dubai where the oil and gas resources are limited, the opportunity to develop bio-fuel technologies is a short term target with immediate benefits.

In this perspective Petrixo project to build the first bio-fuel dedicated refinery in the Middle-East is a major step forward.

Using canola, corn, soybean and sunflower as raw materials Petrixo is planning to build a refinery with a capacity of 20,000 barrels per day (b/d), equivalent to 1 million tonnes per year (t/y), of green fuel.

Petrixo Refinery should produce a large range of bio-fuels including:

 – Bio-Diesel

 – Bio-jet fuel

 – Bio-Naphtha

 – Bio-LPG (liquid Petroleum Gas)

In order to develop its bio-fuel refinery project, Petrixo selected the Free Zone and Port of Fujairah in the north of the UAE.

Requiring $800 million capital expenditure, this bio-fuel refinery should cover 640,000 square meters in Fujairah.

In the meantime that UAE becomes self-sufficient in producing the raw materials as feedstock of bio-fuel refinery, Petrixo will have the opportunity to supply the green oil from the global market.

Petrixo completed the pre-feasibility study and selected the technologies to support engineering, procurement and construction (EPC) phase of the Fujairah bio-fuel refinery, the first of that kind in the Middle-East.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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