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OilfieldTechnology
February
2014
isplanningtoraiseproduction levels fromthe fieldto2.85millionbpd
fromthecurrent960000bpd.Additionally, thecontractorhasbeen
awardedonePMCcontract fortheWestQurnaTwooilfield,andthree
intheUAE.AsaFEEDcontractor,WorleyParsonshasoperated in
SaudiArabiaandKuwait,securingtwosuchcontracts inbothcountries.
Saipemhas followedcloselybehind, securing10EPCcontractsand
threeFEEDcontracts,almosta thirdofwhich (4)are inSaudiArabia.
Here the Italiancontractorhasbeenawarded fourEPCcontracts,
twoofwhicharecontracts totallingUS$1.35billion foroffshore
constructionandpipelayingworkon theWasitGasDevelopment
Programme.Theprogramme ispartofSaudiAramco’splans to
augmentgassuppliesbyadding50 trillionft
3
ofnon‑associatedgas
reserves to itsportfolio throughnewdiscoveriesby2016.
Saipemhasalsobeenprolific inAbuDhabiwhere thecontractor
hasbeenawarded threeEPCcontractswortha totalestimatedvalue
ofUS$3.6billion forpipelines, thesulfur recoveryunitand theprocess
plant for theShahsourgasdevelopment.
Reflecting thedominanceofAbuDhabi in the region in termsof
projectactivity,on thecontractorside, the top tencontractors in the
regionsecureda totalof24majorcontracts in theUAE,22ofwhichare
inAbuDhabi.
TechnipandFluorhaveboth faredwell inAbuDhabi,winninga
seriesofFEEDcontracts.Techniphassecured foursuchcontracts,
includingthecontracttocarryoutFEEDworkontheNorthEastBab
Phase3,beingdeveloped inassociationwiththe1.8MillionProject.
FluorhassecuredthreeFEEDcontracts intheEmirate,with
Figure3.
Top12mostactiveoperators(Jan2010‑Aug2013). Imagecourtesyof
EICDataStream.
involvement intwoofAbuDhabi’soffshoreprojects, the
SARBdevelopmentandtheNasrOffshoreoilfield.
In total,FrenchcontractorTechniphasbeen
awardeda further twoFEEDcontractsand three
EPCcontracts,with the remainingcontracts inDubai,
Egypt, IraqandSaudiArabia.
Due to thescaleofmanyprojects in the
MiddleEast,high‑valueEPCcontractsareprevalent,
and theseare frequentlyawarded toconsortiums
that togethercancombinespecialistskills to
addresscomplexworkscopes. Inaddition to its
nine individual contractawards,Techniphasbeen
awardeda further fourEPCcontracts totalling
US$3.5billion, inpartnershipwithAbu‑Dhabibased
NationalPetroleumConstructionCo (NPCC).
The largest of thesecontracts isaUS$1.7billion
EPCcontract tobuild thecentral processing facilities
for ZADCO’sUS$10billionproject to increase
production from theUpper Zakumoffshoreoilfield.
NPCC itself hasbeenawarded fiveadditional
individual contracts,worthanestimated
US$2.3billion for fabricationandpipelayingprojects
inAbuDhabi andQatar.
Contractingrelationships
In theMENA region, themost notablecontracting
relationshipshavebeenbetweenSaudi Aramcoand
contractorsSaipemandMcDermott International,
withbothcontractorsbeingawardeda total of
four EPCcontractseachby theoperator.
Inaddition to itsworkon theWasitGas
DevelopmentProgramme, Saipem’ssuccessfulbids
include further fabricationand installationwork for
offshoremodulesonboth theManifaandSafaniya,
Zuluf,Berri andMarjanoffshoreoilfieldprojects.
McDermott’smajor contractswithSaudi Aramco
arealsodominatedbyoffshore fabricationwork,withawards
forwellheadplatforms, auxiliaryplatformsandproductiondeck
moduleson theSafaniya, Zuluf,Berri,MarjanandKaran fields.
Saipemhasalso faredwellwith the region’smostprolific
operator, ADNOC, securinga total of threeEPCcontracts, all for
workon theShahsourgas fielddevelopment inAbuDhabi. Thebids
includeoneof the largest singlecontractsawarded in thisperiod, a
US$1.9billionEPCcontract for thepipelinepackage.
Aside from these twoplayers, there isabroadspreadof awards
acrosscontractorsoperating in theMENA region, from leading
Europeancontractors to thosebased in theUS, Australiaand India, as
well asanumberofdomesticcontractors.
AbuDhabi is leadingoil andgasdevelopment in theMENA region
and, althoughcontractingactivityhascooledoff thisyearelsewhere,
this is largelydue todelays rather thana lower level ofproject
activity. Significantprojects in Iraq,OmanandSaudi Arabiaare
expected tostartawardingcontractsnext year,whilenewphaseswill
come intoplayonexistingprojects.With investment levelsexpected
to remainhigh, thesemajor contractsshouldprovideabundant
opportunities for thesupplychain.
Note
For thepurposesof this report,MiddleEastandNorthAfrica
(MENA)aredefinedas: Algeria,Bahrain, Egypt, Iran, Iraq, Israel,
Jordan,Kuwait, Lebanon, Libya,Morocco,Oman,Palestine,Qatar,
Saudi Arabia, Syria, Tunisia,UAEandYemen.
Figure4.
Top10mostactivecontractors(Jan2010‑Aug2013). Imagecourtesyof
EICDataStream.
