A faster business flow
Pipeline deals have been constant in the region
Pipeline deals have been constant in the region, and additional drives for oil distribution could bolster the industry further.
Pipeline projects have been plentiful in the last year in the Middle East, only the US and Asia edging out the region in terms of numbers. Simdex, the pipeline database, found that 115 projects are underway for lines that run an average length of 435km, with an added 14 jobs in the pre-construction phase, according to its March 2010 report.
Kuwait took the bulk of the major projects, with the north and the west of the country seeing major construction work, as well as Kuwait City. Heavy Industries Engineering & Shipbuilding, the Safat-based firm, won a US $175 million (KD5.4 million) contract for an oil pipeline for the west of Kuwait.
Combined Group Company For Trading & Contracting - $140 million project for the construction of an oil pipeline and the related features in the north.
Elsewhere, Independent Commercial Group snapped up a $505 million project for the construction of 40-inch oil pipeline from supporting substation No. 131 to the liquid gas factory at Mina Al Ahmadei at Kuwait city.
National Petroleum & Construction Company (NPCC) in February secured $62 million upgrading of the offshore Idd al-Shargi North Dome Field in Qatar, beating strong competition that was rumoured to include Jebel Ali based J Ray McDermott and the US’ Global Offshore.
Qatar has been earmarked as the region’s fastest growing country for US exports, according to a recent report by the National US-Arab Chamber of Commerce.
These days it appears a relatively local project for the Abu Dhabi-controlled company, having announced to newswires earlier in the month that it is the latest company from the emirate shooting for international expansion. Nigeria, Kazakhstan and Libya are in its sights.
“Our traditional region is the Gulf and India,” NPCC CEO Aqeel Madhi rold the press last Monday in Abu Dhabi. “The board is encouraging us to look beyond our traditional areas.”
Closer to NPCC’s home, the UAE is also set to begin key projects. Earlier this year the Abu Dhabi Transmission & Despatch Company awarded the contract for the second phase of the Fujairah water transmission system to a consortium led by Technip and Dodsal Engineering & Construction Dubai.
It may be the first of a number of link-ups between firms looking to pool resources and come to a better resolution than all-out competition.
The system is to run from Fujairah F2 independent water and power project to a water storage facility at Al Hayer close to Al Ain.
It is a lumpsum turnkey contract, worth approximately US $610 million, and continues the collaboration between the two companies that began in July 2008 with the first phase of the pipeline, that this time looks to increase the daily throughput of the existing system from 454,600 to 1 million m3.
Paris-based Technip will spearhead the procurement, commissioning and performance testing, while Dodsal will execute the construction part of the project.
It continues an interesting development into this region for the French company, which just over a year ago created a regional organisation to boost its proximity to the GCC markets. At the end of last year it was awarded a lump sum turnkey EPC contract from Abu Dhabi Gas Industries, worth approximately $415 million for the ASAB 3 Project.
This project – to start in two years’ time with a year to complete - is a revamp of existing facilities to support an increase in oil production from the new ADCO facilities and accommodate up to 4.2 million m3 daily of additional associated gas from the Asab, Shah and Sahil oil fields.
Technip will install a new booster compression station, transfer lines, debottlenecking of existing ASAB 0 facilities and diverting feed flow from ASAB 0 to ASAB I/II by installing a new compressor, transfer lines and other facilities.
Big deals, big players
National Petroleum Construction Company $62 million upgrading of Idd al-Shargi North Dome Field (Q2 – 2010 to Q2 2012)
Independent Commercial Group
$505 million project for the construction of 40-inch oil pipeline from supporting substation No. 131 to the liquid gas factory at Mina Al-Ahmadei at Kuwait City.
Combined Group Co
$140 million project for the construction of an oil pipeline and the related features in the north of Kuwait. (Q1 2009 to Q1 2012)
Heavy Industries Engineering
$175 million project for an oil pipeline for the west of Kuwait. (Q1 2009 to Q1 2012)
Al Ghanim International
$28 million construction of an oil pipeline linking transit line 3 and the Doha power and water generating complex in the north of Kuwait. The engineering, procurement and construction involves installing 20 inch diameter and 25 kilometre-long crude pipelines running between the main crude export pipeline and the oil-fired Doha East power and desalination plant.