Odfjell Drilling enters letter of intent for Breidablikk development with Deepsea Aberdeen

 Equinor has today awarded a letter of intent to Odfjell Drilling for the drilling and completion of the Breidablikk project with Deepsea Aberdeen.The letter of intent is subject to finalization of contract.

 

The contract is set to commence during spring 2022 with a scope of fifteen (15) firm wells and an estimated duration of 2.5 years.  In addition, there are nine (9) optional wells. The approximate contract value for the firm scope is USD 290 million (excluding any integrated services, modifications/upgrades and mobilisation/demobilisation fees). In addition, a notable performance incentive rate will apply when wells are delivered ahead of target. The rate for the optional wells will be mutually agreed based on performance and market benchmarks.

 

Simen Lieungh, CEO Odfjell Drilling AS, says: “We are delighted to secure another long term development project with Equinor and build upon our successful relationship by adding the Deepsea Aberdeen to the Equinor fleet.  The Breidablikk development presents a specific set of technical challenges which shall require innovative and creative technologies to overcome.  This award is further recognition of Odfjell Drilling’s continuous drive to meet our clients’ requirements and deliver the most efficient wells in the industry. With the development of cutting edge drilling solutions tailored for the Breidablikk development we are confident that together with Equinor and the wider One Team, the Breidablikk development will be a success. ”

The Breidablikk field ready for development

 Equinor and partners Petoro, Vår Energi and ConocoPhillips Skandinavia have decided to develop the Breidablikk field in the North Sea. Today the partnership will submit the plan for development and operation to the Minister of Petroleum and Energy, in addition to awarding contracts for subsea facilities and upgrading of the Grane platform.

The expected production from the field is about 200 million barrels, investments totalling about NOK 18.6 billion.

“The Breidablikk field is one of the largest undeveloped oil discoveries on the Norwegian continental shelf (NCS). Field development will create substantial value for the Norwegian society and the owners. We are also pleased to award two key contracts today at a total value of NOK 3.3 billion, including options. The contracts will contribute to important activity for the supply industry and secure jobs for many years,” says Geir Tungesvik, Equinor’s acting executive vice president for Technology, Projects and Drilling.

The development concept chosen for the Breidablikk field is subsea development with 23 oil producing wells from four subsea templates that are controlled from Grane. Breidablikk will be tied in to the Grane platform for oil processing prior to being brought ashore at the Sture terminal. The production from Grane will be monitored with advanced digital tools from Equinor's integrated operations centre (IOC) at Sandsli to ensure optimal production and value creation from the wells.

“I am pleased that we together with our partners have matured the Breidablikk field to development. Breidablikk shows how the industry’s combined competencies create high value and returns from a world-class infrastructure on the NCS,” says Arne Sigve Nylund, Equinor’s executive vice president for Development and Production Norway.

“Breidablikk will contribute significantly to maintaining profitable production in one of our core areas on the NCS,” Nylund adds.

Geir Tungesvik (left), acting executive vice president for Technology, Projects and Drilling, and Arne Sigve Nylund, Equinor’s executive vice president for Development and Production Norway.

The Breidablikk development will include a control cable system for electricity and communication (DC/FO). This is a relatively new technology that can reduce the costs associated with further development of the field, in addition to facilitating the use of docking stations for subsea drones on the seabed. The phase-in of Breidablikk will reduce the CO2 intensity on the Grane field.

Securing jobs in the supply industry
The contract for subsea production facilities is awarded to Aker Solutions. The contract covers the delivery of four subsea templates and up to 23 subsea trees and associated components. The contract value is estimated at about NOK 2.5 billion, including options. Around 300 man-years in Norway will be associated with the project for the supplier, with project management and engineering at Fornebu and Tranby, fabrication in Egersund and Sandnessjøen and service organisation in Ågotnes. In addition, there will be deliveries from the UK, Malaysia and Brazil.

Wood, the maintenance and modification supplier for Grane, has performed studies for the Breidablikk project, and an option for engineering, procurement, construction and installation (EPCI) will now be exercised for the company. The work scope includes equipment installation on the Grane platform in order to receive oil from the Breidablikk subsea facility. Existing processing equipment and water purification system on the platform will be upgraded. With an estimated value of about NOK 800 million the contract is expected to create over 500 man-years in Norway. The engineering work will be performed in Sandefjord and the fabrication will take place in Stavanger.

Earlier this year TechnipFMC won a contract for pipelaying in the Breidablikk project with options for subsea installation.  The award contributes to sustaining workplaces for TechnipFMC in Norway, including the Orkanger spool base, where the pipelines will be fabricated before they are reeled onto the installation vessel.

All contracts have not been awarded, however about 70% of the value creation in the development phase is expected to go to Norwegian companies. The contracts are subject to government approval of the plan for development and operation.

Oil will be transported through the Grane oil pipeline to the Sture terminal in Øygarden municipality for storage and shipping. The field will be operated from Equinor’s Sandsli facilities in Bergen. Breidablikk is being phased in during a period of declining oil production at Grane and will help maintain the activity level on the platform.

First oil from the field is scheduled for the first half of 2024.

TechnipFMC Awarded a Significant EPCI Contract for the Equinor Breidablikk Pipelay and Subsea Installation

 TechnipFMC has been awarded a significant(1) Engineering, Procurement, Construction and Installation contract by Equinor for the Breidablikk Pipelay, including option for the Subsea Installation scope located in the area close to the Grane Field, North Sea.

The Breidablikk project is a tie-back to the existing Grane platform. TechnipFMC’s scope includes provision of flexible jumpers and rigid pipelines as well as pipeline installation work.

Jonathan Landes, President Subsea at TechnipFMC, commented: “We have collaborated closely with Equinor in order to optimize the solutions and methodology for the pipelay installation. We are honored to once again be selected by Equinor to create value with our products and services offering.”

The Breidablikk development is subject to final approval by the Norwegian authorities.

BHP to acquire an additional 28 per cent working interest in Shenzi from Hess

 BHP today announced that it has signed a Membership Interest Purchase and Sale Agreement with Hess Corporation (Hess) to acquire an additional 28 per cent working interest in Shenzi, a six-lease development in the deepwater Gulf of Mexico. Shenzi is structured as a joint ownership: BHP (Operator, 44 per cent interest); Hess (28 per cent interest) and Repsol S.A. (28 per cent interest).

 

BHP and Hess have agreed to a purchase price of US$505 million, subject to customary pre and post-closing adjustments.

 

The acquisition would bring BHP’s working interest to 72 per cent and immediately add approximately 11,000 barrels of oil equivalent per day of production (90 per cent oil).

 

This transaction is consistent with our strategy of targeting counter-cyclical acquisitions in high-quality producing or near producing assets. While our strict Capital Allocation Framework tests ensure all investments are resilient to low points in the commodity cycle, we also recognise the potential for price upside over the medium term given the global slowdown in development activity, and we are well positioned to participate in that upside. We continue to believe that the fundamentals for oil and advantaged gas will be attractive for the next decade and likely beyond.

 

BHP President Petroleum Operations, Geraldine Slattery said: “This transaction aligns with our plans to enhance our petroleum portfolio by targeted acquisitions in high quality producing deepwater assets and the continued de-risking of our growth options. We are purchasing the stake in Shenzi at an attractive price, it’s a tier one asset with optionality, and key to BHP’s Gulf of Mexico heartland. As the operator, we have more opportunity to grow Shenzi high-margin barrels and value with an increased working interest.

Refining NZ finalises plans for simplified refinery operations in 2021

 On 25 June 2020, Refining NZ announced completion of the first phase of its Strategic Review, taking forward a near-term proposal to simply refinery operations and in parallel explore with customers a possible future staged transition to an import terminal.

The Company has now finalised its proposal to operate the refinery in 2021 under the current Processing Agreement, which will enable it to extend cash neutral operations in a low-margin environment at the Fee Floor.

This proposal includes:

·       Reducing refinery throughput to 90,000 bbls/day (equivalent to levels at the time of commencement of the Processing Agreement in 1995) and the cessation of bitumen production;

·       c$20M reduction in opex compared with 2020 primarily through lower labour and other costs;

·       Undertaking the deferred 2020 turnaround of Crude Distillation Unit 1 and the CCR Platformer. Total capex for 2021 is forecast at $50M; and

·       Estimated restructuring costs in 2020 of c$5M, which will be funded using proceeds from asset sales.

The simplification proposal for 2021 follows the action already taken in 2020 to reset the cost base to Fee Floor levels through $70M in opex and capex cost reductions.

During the last quarter, the Company has also progressed import terminal discussions with customers. These discussions are ongoing and any decision to proceed with a conversion to an import terminal will ultimately be a decision voted on by non-customer shareholders.

Refining NZ chairman Simon Allen said: “We are pleased we have been able to find a way to continue operating the Marsden Point refinery in the most challenging environment Refining NZ has faced since deregulation of the oil industry in 1988. Our focus at this time is on operating the refinery safely and on our people who are impacted by the changes we need to make. We are working closely with local, regional and national authorities and agencies to ensure that the proposed transition is smooth and the impact on our people and the region is minimised.”

Rosneft and GNPC arrange LNG supply to Ghana and sign a cooperation agreement

 25 May 2018

 

As part of the XXII St. Petersburg International Economic Forum, Rosneft and the Ghana National Petroleum Corporation (GNPC) signed the package of documents assuming the delivery to the port of Tema (Ghana) over 12 years of the liquefied natural gas (LNG) in the volume of ca. 1.7 mmtpa (or 250 mln standard cubic feet per day), its regasification using the processing capacities of Tema terminal in order to subsequently supply the natural gas to GNPC. The obligations of the parties arising from the above documents will come into effect once they are approved by the Boards of Directors of the parties.

 

Rosneft gas supplies will allow to satisfy a quarter of Ghana's energy demand, strengthen its energy security and reinforce the country's position as the key LNG hub in the region.

 

During the forum Rosneft and GNPC also signed a framework cooperation agreement that envisages a joint study of high-priority directions of mutually beneficial cooperation in development of oil and gas fields, oil and oil product supplies.

 

Rosneft Chief Executive Officer Igor Sechin noted: "The signed documents open a new stage in the development of cooperation between Russia and the Republic of Ghana. Today, Ghana has placed itself among dynamically developing world economies with the energy demand growing year on year. Being a global energy company, Rosneft is capable of meeting this demand including also through LNG and natural gas supplies. Further, the documents open up wide exploration, production and trading possibilities for the Company."

Agreement For Construction Of Tema LNG Terminal Project Signed

 02 September 2018

Tema LNG Terminal Company Ltd., an entity controlled by Helios Investment Partners, the world’s largest Africa-focused private equity fund, on Sunday, 2nd September, 2018, signed an agreement with China Harbour Engineering Company, for the construction of a Liquefied Natural Gas (LNG) Terminal to be sited in Tema.

The LNG Terminal is being constructed on the back of a 12-year gas supply agreement that was executed between the Ghana National Petroleum Corporation (GNPC) and Rosneft, a global LNG trader and the world’s largest listed oil producer. Rosneft subsequently engaged Tema LNG Terminal Company for the provision of the regasification services.

The LNG Terminal, which will be completed in 18 months, will be Sub-Saharan Africa’s first regasification terminal, strengthening Ghana’s position as a regional trade and energy hub.

The project, which will generate some 1,600 jobs, is estimated to provide about two million tonnes of liquefied natural gas every year. This would mean that the facility would supply about 30% of Ghana’s total electricity generating capacity, displacing crude oil and crude derivatives as fuel sources for the generation of power.

In addition, a concession agreement signed between the Ghana Ports and Harbours Authority (GPHA) and Tema LNG Terminal Company Ltd, to allow for the siting and operation of the facility within the Tema port, will deliver an annual revenue in excess of $6 million to GPHA throughout the total concession period.

Witnessing the signing of the agreement, in Beijing, China, as part of his official visit to that country, President Akufo-Addo indicated that the Tema LNG Terminal Project is testament to the efforts his government has put in place over the last 19 months to encourage private sector participation in the growth of the economy.

The President noted that the construction of the terminal is in line with the commitment of his government to providing Ghana with constant, reliable and affordable power supply.

He stressed that “if we are going to succeed in pushing the industrial development of our country rapidly, the supply of gas, which will mean even more affordable rates of power, to our country is now a matter of very great importance for us.”

The Tema LNG Terminal Project is a private sector funded and driven project, led by established international sponsors, such as Rosneft, the world’s largest listed producer of crude oil, and Helios Investment Partners, the world’s largest Africa-focused private equity fund. As such, there was no requirement for capital from Government.

The cost of the project is estimated in excess of some $350 million, of which $200m would be spent directly in Ghana over the next 18 months.

 

China Harbour Engineering Company, which is already involved in the current Tema port expansion project, is constructing the marine facilities, whilst Jiangnan Shipyard of China will be constructing the floating regasification facility.

 

The contract was signed by Ogbemi Ofuya, the Director, Tema LNG Terminal Company Ltd, and Lin Yichong, Chairman, China Harbour Engineering Company

 

Present at the signing ceremony were the Minister for Roads and Highways, Hon. Kwasi Amoako-Atta; Minister for Railways Development, Hon. Joe Ghartey; Minister for Agriculture, Hon. Owusu Afriyie Akoto; Minister for Information-designate, Hon. Kojo Oppong Nkrumah; and the Chief Executive Officer of the Ghana Investment Promotion Centre, Mr. Yofi Grant, amongst others.

Axens Awarded Complete Residue Hydrocracking Solution Towards Naphtha Production For Shenghong

 

APRIL 24 - 2019

Shenghong Refining & Chemical (Lianyungang) Co., Ltd has selected Axens’ ebullated-bed residue hydrocracking technology H-Oil® for a capacity of 3,200,000 tons per year in combination with a 3,450,000 tons per year tons distillates hydrocracking technology HyKTM as the key units of its residue valorization for its petrochemical complex in Lianyungang, Jiangsu, China.

 

The project aims at increasing naphtha production capacity by 3,600,000 tons per year in single train units. Beyond vacuum residue, the Axens’ solution will handle steam cracker py-oil as feed to the H-Oil® unit and effluents of existing Coker to the HyK™ unit.

 

The solution proposed by Axens features the following units:

 

• H-Oil® (ebullated-bed residue hydrocracking) technology originally developed by Axens. The H-Oil® will apply supported catalysts from Shell Catalysts & Technologies in conjunction with HTI’s HCAT technology to maximize performances. The high quality unconverted residue will feed the existing coker unit.

• Maxi naphtha Distillate HyK™ (Hydrocracking) technology originally developed by Axens and applying advanced catalytic solution in combination with high efficiency heat integration thanks to ZPJE spiraled tube heat exchangers technology.

“The routing optimization between the distillate hydrocracking HyK™ unit and the H-Oil® unit allows delivering superior naphtha yields and improving coker’s feed quality. This project demonstrates superior and energy efficient technology solutions offered by Axens to support those highly integrated refinery- petrochemical complexes”, said Jacques Rault, middle distillates & Conversion Business Line Director.

 

Since 2014, the Axens’ ebullated-bed residue hydrocracking H-Oil® technology has been adopted by several Chinese refineries, public as well as private demonstrating the H-Oil® ability to cope with several refining environment and to be an energy efficient and cost effective solution.

 

This brand new state-of-the-art residue hydrocracking unit will allow Shenghong to further improve their economic resilience and competitiveness while producing highly valuable petrochemical prone feeds.

 

Axens will also supply HyK catalysts, equipment and full services offer from plant personnel training to plant start-up.

Shenghong Petrochemical to Use Honeywell UOP Hydrogen Technology for New China Complex

 April 2, 2020 – Honeywell UOP announced today that Shenghong Petrochemical Group will use five Honeywell UOP Polybed™ pressure swing adsorption (PSA) units to supply high-purity hydrogen for a new refinery complex in Lianyuangang, Jiangsu Province in China.

 

“Petrochemical manufacturers including Shenghong Petrochemical increasingly need extremely pure, reliable and economical supplies of hydrogen, and UOP’s PSA technology continues to be among the most advanced and efficient source of pure hydrogen in the industry,” said Bryan Glover, vice president and general manager, Petrochemicals & Refining Technologies at Honeywell UOP. “Hydrogen purification is an essential component for making clean transportation fuels, remove contaminants and improve the quality of fuels and petrochemicals.”

 

Polybed PSA systems are skid-mounted, modular units complete with hardware, adsorbents, control systems and embedded process technology, enabling quick and efficient installation to reduce cost and downtime.

 

The PSA process uses proprietary UOP adsorbents to remove impurities at high pressure from hydrogen-containing process streams, allowing hydrogen to be recovered and upgraded to more than 99.9% purity to meet refining needs. In addition to recovering and purifying hydrogen from steam reformers and refinery off-gases, the Polybed PSA system can be used to produce hydrogen from other sources such as ethylene off-gas, methanol off-gas and partial-oxidation synthesis gas.

 

Since its introduction in 1966, UOP has improved Polybed PSA technology with new generations of adsorbents, enhanced cycle configurations, modified process and equipment designs and more reliable control systems and equipment. Today, Honeywell UOP has installed more than 1,100 Polybed PSA units in more than 70 countries. As a result, Polybed PSA is a proven technology with dozens of large-scale unit references globally.

DuPont Clean Technologies has been awarded contracts to supply Shenghong Petrochemical Group Co., Limited with a STRATCO® alkylation technology license, engineering, and proprietary equipment.

 

July 10, 2019 – DuPont Clean Technologies (DuPont) has been awarded contracts to supply Shenghong Petrochemical Group Co., Limited (Shenghong) with a STRATCO®alkylation technology license, engineering, and proprietary equipment. Shenghong is undertaking a project to design and construct a new alkylation unit as part of its grassroots petrochemical and refining facility with crude oil capacity of 16 million mtpa (320,000 bpsd) located in Lianyungang City, Jiangsu Province, China. The STRATCO® alkylation unit at the Shenghong Petrochemical and Refining facility will be designed to produce 440 kmta (10,987 bpsd) of alkylate product.

The STRATCO® alkylation unit will enable the Shenghong Petrochemical and Refining facility to generate low-sulfur, high-octane, low-Rvp alkylate, with zero olefins, that meets the criteria of upcoming China VI standards which will take effect prior to the startup of the Shenghong facility in 2021.

“DuPont looks forward to working with Shenghong on this exciting, new opportunity, as the company sets out to build a world-leading petrochemical industry park,” says Kevin Bockwinkel, Global Licensing Business Manager, STRATCO® alkylation technology. “We were very pleased an alkylation unit had been included in the complex configuration as Shenghong is looking for the most efficient way to make high quality fuels in its cutting-edge crude-to-chemicals plant. DuPont has a rich history of providing technology that enables customers to produce high quality alkylate, with high octane value and zero olefins or aromatics, in an extremely reliable and energy efficient way. We look forward to continuing to develop the relationship between DuPont and Shenghong – one that will last the lifetime of the alkylation unit.”

STRATCO® alkylation technology is the established global leader in the industry with over 100 units licensed worldwide and more than 33,300 kmta (850,000 bpsd) of installed capacity. STRATCO®alkylation technology is a sulfuric acid catalyzed process that converts low-value olefins into high-value alkylate, a key desirable component for clean fuel. With currently operating units dating back as far as 80 years, the STRATCO® alkylation technology is a highly effective, reliable solution for producing clean-burning fuel with high octane, low Rvp, low sulfur and zero olefins.