Contract Awards

Neptune Energy cuts CO2 emissions at Adorf with contract award to KCA Deutag

Neptune Energy announced the award of a contract to drill the Z17 well in the Adorf carboniferous gas field, north-west Germany, to KCA Deutag. Operated with power from the grid, KCA Deutag’s rig will use electrical motors in place of diesel-driven generators, removing an estimated 1,000 tonnes of CO2 emissions from the drilling operation.

Neptune has been developing the Adorf field since 2019. The Adorf Z15 and Adorf Z16 wells were also drilled by KCA Deutag and arenow in production.

Neptune Energy’s Managing Director in Germany, Andreas Scheck, said: “The Adorf carboniferous field development is an important project for Neptune. We have already increased production significantly and see a great deal of further potential from the field.

“The use of electrical motors underlines Neptune’s commitment to continue to reduce emissions from our operations.”

The deployment of emission-reduction technology is aligned with Neptune Energy’s strategy to store more carbon than is emitted from its operations and from the use of its sold products by 2030.

Ron Klunder, KCA Deutag Country Manager said: “The award of this contract further strengthens our long-term relationship with Neptune Energy and allows us, through Kenera, our new business unit, to utilise technology to cut emissions and assist Neptune in meeting their carbon reduction goals.”

Work on the Z17 well is due to commence in June this year.

As operator, Neptune Energy holds a 100% stake in the Adorf Carboniferous gas field. The current daily production is around 4,500 boe.

QatarEnergy selects Fugro to de-risk its major redevelopment project of Bul Hanine and Maydan Mahzam fields

Fugro has won a contract to deliver a highvalue multi-year seabed Geo-data acquisition and geo-consultancy services to QatarEnergy as part of the redevelopment of the Bul Hanine and Maydan Mahzam fields in offshore Qatar.

Operating from three state-of-the-art vessels (Fugro Proteus, Pacific Grouse and Bourbon Enterprise), a Fugro team of survey specialists will perform a range of in-depth geotechnical and geophysical assessments, as well as establishing environmental baseline data.

They will be joined by geo-consultancy experts who will carry out comprehensive foundation assessments and provide expert advice on pipe-soil interaction.

Fugro is a long-term strategic partner of QatarEnergy and a key provider of highquality Geo-data to the state-owned energy company. It has committed a wide range of digital technologies to the Bul Hanine and Maydan Mahzam redevelopment project, including digital data flow and processing, GIS dashboards and the full support of Fugro’s newest remote operations centre (ROC) in Doha, Qatar. The ROC team will give QatarEnergy uninterrupted access to high-quality, real-time Geo-data from all ongoing surveys to support swift, informed decision-making.

Seadrill-Sonangol JV scores new drillship contract in Angola

Offshore driller Seadrill has secured a new contract through Sonadrill, a 50:50 joint venture with an affiliate of Sonangol, for a ten-well campaign in Angola utilising the 2010-built drillship West Gemini.

The contract is worth around $161m, excluding options for up to eight additional wells, and also comes with further revenue potential from a performance bonus, Seadrill said.

Commencement is expected in the fourth quarter of 2022 with a firm term of approximately 18 months, in direct continuation of the drillship’s existing contract.

The West Gemini is the third drillship to be bareboat chartered into Sonadrill, along with two Sonangol-owned units, the Sonangol Quenguela and Sonangol Libongos. Seadrill, which owns and operates 30 rigs, will manage and operate the units on behalf of Sonadrill.

Subsea 7 awarded substantial contract

Subsea 7 announced the award of a substantial contract that will be recorded in the backlog of our Subsea and Conventional business unit in the first quarter of 2022.

The award, made to a consortium including Subsea 7, comprises engineering, procurement, construction, and installation (EPCI) of offshore facilities, subsea pipelines, and associated infrastructure.

Project management and engineering will commence immediately, and offshore activities are scheduled to commence in Q3 2024.

No further details are disclosed at this time due to contractual obligations.

Saipem Pens $150M Coral FLNG Maintenance Deal

Italian oilfield contractor Saipem has won a contract for maintenance services on the Coral Sul FLNG floating facility offshore Mozambique.

The contract was awarded by Coral FLNG S.A., a special purpose entity incorporated in Mozambique by Area 4 Partners – Eni as the delegated operator and ExxonMobil, CNPC, GALP, KOGAS, and ENH as the remaining partners.

Saipem said that the contract was worth $150 million with a duration of around 9 years, plus one optional year. The activities cover maintenance of the entire FLNG facility and onboard supervision as well as the creation of an onshore logistical base.

“The award of this new service contract confirms Saipem’s presence in the liquefied natural gas segment, within the scope of the diversification of the project portfolio and strengthens its positioning in a strategic country such as Mozambique,” Saipem stated.

As for the Coral Sul, it is the first floating LNG facility ever deployed in the deep waters of the African continent.

Coral South Project achieved a final investment decision in 2017. The construction of the FLNG hull and topside modules started in September 2019. Worth noting, BP signed a long-term deal to buy all the LNG produced by the unit.

The Coral Sul FLNG vessel was named on November 15, 2021, and left the Geoje Samsung Heavy Industries shipyard in South Korea the following day. The FLNG vessel arrived in Mozambique in the Rovuma Basin on January 3, 2022. The process of anchoring, surveys, inspections and certifications is underway to meet the schedule for the planned start of production in the second half of 2022.

The Coral Sul FLNG plant is 1,400 feet long, 215 feet wide, weighs about 220,000 tons, and can liquefy 3.4 million tons of natural gas per year.

It will produce gas from the Coral offshore gas field in the Rovuma basin off the coast of the northern province of Cabo Delgado. The field has approximately 16 trillion cubic feet of gas in place. Italian oil and gas firm Eni, the operator of the project, made the discovery back in 2012.

The installation campaign is supposed to be done in a water depth of 6,500 feet. Coral Sul FLNG will be moored with 20 mooring lines with a total weight of 9,000 tons.

In recent news involving Saipem, it was awarded new offshore drilling contracts in the Middle East and West Africa for a total amount of over $400 million.

Saipem said that the two contracts were awarded in the Middle East for two high specification jack-up drilling units, consisting of drilling and workover operations for five years.

The start of operations is scheduled for the fourth quarter of 2022. These projects will involve one Saipem jack-up unit and a new high specification jack-up chartered from CIMC.

Petrofac secures second O&M contract with Cairn Oil & Gas, Vedanta

Petrofac, a leading provider of services to the global energy industry, has been awarded a new Operations and Maintenance (O&M) contract with Cairn Oil & Gas, Vedanta Limited, India’s largest private oil and gas exploration company.

Valued at approximately US$60 million, the 60 month contract encompasses services and expertise to support Cairn’s Mangala Processing Terminal (MPT) located in Rajasthan. The scope of work includes integrated O&M and auxiliary services.

This award follows in quick succession the February announcement that Cairn had selected Petrofac to provide integrated O&M services in support of its upstream oil and gas facilities at the Ravva Oil and Gas field in Andhra Pradesh. Petrofac also previously completed a lump-sum EPC contract, which Cairn awarded in April 2018 for its RDG Field Development Project.

Nick Shorten, Chief Operating Officer for Petrofac’s Asset Solutions business said:

“The award of another prominent O&M contract in India supports our growth ambitions in-country. The Mangala Processing Terminal helps generate significant revenue for the Indian economy, so we value the confidence that Cairn has in our organisation to deliver this latest scope of work. We look forward to supporting them locally, to help drive operational excellence at this important facility.”

Prachur Sah, Deputy Chief Executive Officer, Cairn Oil & Gas, Vedanta Ltd. said:

“Cairn’s association with Petrofac has advanced our performance in oil and gas operational excellence and execution. Petrofac’s global expertise and performance track record in the upstream oil and gas sector can be seen in our on-ground operations at the Ravva field in Andhra Pradesh. We are confident that their services and expertise to support Cairn’s Mangala Processing Terminal, India’s largest oil field, will help us enable our vision of doubling domestic production and achieving energy ‘aatma-nirbharta’ (self-reliance) for the country.”

Baker Hughes awarded contract for Plaquemines LNG project

Baker Hughes has been awarded a contract and granted notice to proceed by Venture Global LNG to provide an LNG system for the first phase of the Plaquemines LNG project in Louisiana, US.

The highly-efficient liquefaction train system (LTS) supplied by Baker Hughes is modularised, helping to lower construction and operational costs with a ‘plug and play’ approach that enables faster installation. Baker Hughes manufactures, tests, and transports the pre-assembled and fully integrated modular turbomachinery units for Venture Global LNG at its manufacturing and assembly facilities in Italy.

As part of the scope, Baker Hughes will also provide field services to assist in commissioning of the supplied equipment. The order builds on an award from 4Q21 for Baker Hughes to provide power generation and electrical distribution equipment for the comprehensive power island system of Venture Global LNG’s Plaquemines LNG project.

“We are delighted to continue our strong collaboration with Venture Global LNG. The Plaquemines LNG project is another great example of our extensive experience with modular LNG to provide fully integrated compression and power solutions,” said Rod Christie, Executive Vice President of Turbomachinery & Process Solutions at Baker Hughes. “As an energy technology company, Baker Hughes’ role is to provide the most efficient and lower carbon technology solutions to meet our customers specific needs, and LNG is a critical part of the energy future. We see a new LNG cycle emerging and expect demand will remain robust in the coming years.”

“Baker Hughes has been an outstanding partner to Venture Global and we look forward to building on that partnership as we ramp up construction at Plaquemines LNG,” said Mike Sabel, Venture Global LNG CEO. “I want to thank Lorenzo Simonelli and his team for their execution and delivery at Calcasieu Pass, notwithstanding the challenges of a global pandemic. Together we will continue to innovate and transform the LNG industry, bringing this essential fuel to the global market to meet the world’s growing energy needs.”

The Plaquemines LNG project order follows a similar contract for a comprehensive LNG technology solution supplied by Baker Hughes for Venture Global’s Calcasieu Pass LNG terminal in 2019, also in Louisiana. In 2021, Baker Hughes successfully completed delivery of the ninth and final block for Calcasieu Pass; all shipments were finalised ahead of schedule. Calcasieu Pass holds the global record for the fastest construction of a large scale greenfield LNG project, moving from FID to first LNG in 29 months.

The contracts were awarded under a master equipment supply agreement between Venture Global LNG and Baker Hughes for 70 million tpy of production capacity. Baker Hughes’ first equipment deliveries for the Plaquemines LNG project are expected to begin 1H23.