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OilfieldTechnology
February
2014
Theseeightprojectsare focusedonoilproduction,eithervianew
oilfielddevelopments,suchastheUmmal-LuluandNasroilfields,
oron increasingoilproduction fromexisting fields, suchas the
1.8MillionProjectandUpperandLowerZakum fielddevelopments.
Iraqprospers
Therehasalsobeenconsiderableactivity in Iraq,wherea totalof
40majorcontractshavebeenawardedbetweenJanuary2010and
August2013.Halfof thesecontracts (20)wereawardedon fivemajor
projects–WestQurnaOne,WestQurnaTwo,Majnoon,Zubairand
SouthRumaila– thatareexpected toaccount for75%of Iraq’s future
oilproduction.
Developmentof these fieldshas required technologyand
experiencenotpresent in Iraqioil companies, so international
operatorshavebeenbrought in toprovide theskillsandexpertise
required to rehabilitateanddevelopexisting fields.This is reflected
in thepresenceof three foreignoil companies–Gazprom,Lukoiland
Shell–on the listof top twelveoperators,who togetheraccount for
17contractsacross theBadra,WestQurnaTwoandMajnoonoilfield
developments in Iraq.
In2013,operatorGazpromawardedamajorEPCcontract to
SamsungEngineering tobuild theCentralProcessingFacilities
(CPF) forPhase IIof theBadraOilfieldproject in Iraq’s
WasitProvince.Thecontract isvaluedatapproximately
US$879million.A furtherEPCcontractaward isexpected
in thenear future fora108km,18 in.pipeline to transport
gas from theCPF to theZubeidapowerplant.
Saudiperformsstrongly
Activity inSaudiArabiahasbeenslower,with21major
contractawardsmadebetweenJanuary2010and
August2013.TheKingdom’snationaloil company,
SaudiAramco,accounted for14of thesecontracts,
awardedacrosseightdevelopments in thecountry.
Similar toAbuDhabi,SaudiArabia’supstreamsector is
dominatedbyamixof large-scalegas fielddevelopments,
suchas theWasitandMidyan fields,andmaintenanceofoil
production levels throughnewand redevelopmentoilfield
projects.Contractingactivity inSaudiArabiapeaked
in2012whenaseriesof significantEPCcontractswere
awardedacrossmanyof itsenergyprojects.
Despite thedecline inactivity in2013,major
investmentscontinued tobemade,withaUS$1billion
EPCcontractawarded toMcDermottearly in theyear
forPhaseIIof theSafaniyaOilfieldUpgrade.Notably,
FosterWheelerwasawarded theFEEDcontract for the
plannedexpansionof theKhuraisOilfield inAugust2013,
which isdue tobecompleted in thesecondquarterof2014,
with tenders forEPCcontractsexpected tobe released in
mid-2014.
Leadingcontractors
The top tenmostsuccessful contractorsacross the
MENA regionwereawardeda totalof50EPCcontracts,
18FEEDcontractsandsixPMCcontracts (Figure4)across
40developmentsbetweenJanuary2010andAugust2013.
WorleyParsonshasbeenthemostsuccessfulcontractor,
securingatotalof14contracts, followedcloselybySaipem
withatotalof13contracts.WorleyParsonshasbeen
prosperous in Iraq,havingsecuredtheFEEDcontract,
andthenthesubsequentPMCandEPCcontracts forthe
giantSouthRumailaoilfield,whereaBP-ledconsortium
2014prospects
Nasr Oilfield, Abu Dhabi: Operator Adma-Opco
is close to awarding twomajor EPC contracts
for Phase II of this 65 000 bpd offshore field
development. A number of contractors have
prequalified for Package 1 (central processing
facility) and Package 2 (sevenwellhead towers
and 200 km of pipelines) and contract awards are
expected later this year.
South Rumaila Oilfield, Iraq: This field in
southern Iraq is classed as a super-giant with
an estimated 16 billion bbls of reserves. Iraq’s
Oil Ministry has agreed a new plateau target of
2.1million bpd for the field, and an EPC contract
award for the central processing facility expected
later this year.
Khazzan andMakerem gas fields: The
Omani government gave the go-ahead to this
BP-led project in December 2013, paving the
way for constructionwork to begin this year.
Bidding activity is currently underway for
two EPC contracts; one for the early development
work and one for the surface facility package.
Figure1.
Numberofcontractsbyyear(Jan2010-Aug2013). Imagecourtesyof
EICDataStream.
Figure2.
Numberofcontractsbycountry(Jan2010-Aug2013). Imagecourtesyof
EICDataStream.
