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IPIC AND MUBADALA NAME BOARD FOR $125BN MERGER
Mubadala Development and International Petroleum Investment Company (Ipic) have named the new board for their $125bn merged company, the government announcedearly this week.
The chairman of the board of the combined conglomerates will be Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of theArmed Forces, with Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs, as vice chairman.
Khaldoon Al Mubarak, the Mubadala chief executive, will be chief executive of the new merged entity, which has been named Mubadala Investment Company, whichwill be one of the world’s largest strategic investment companies with 68,000 employees.Other board members include Suhail Al Mazrouei, the Minister of Energy, who was also managing director of Ipic and chairman of Mubadala Petroleum.
The structure of the new company, including its divisions, which span aerospace and defence, information and communications technologies, metals manufacturing,as well as energy, is expected to be detailed by the new company after the board meets.
That will include the shape of the diverse energy interests covering the Masdar renewables portfolio, power utilities, as well as oil, gas and petrochemicals
investments.Of the combined group’s $125bn assets at the end of 2015, the energy portfolio made up about two-thirds of Ipic’s assets and about 10% of Mubadala’s,including Mubadala Petroleum.
The combined company will have oil and gas production outside Abu Dhabi of more than 850,000 barrels of oil equivalent per day (boepd) with refining capacityof 1.5mn bpd, including its wholly-owned subsidiary Cepsa, and 21% holding in Japan’s Cosmo Oil.
Other large parts of the portfolio include GlobalFoundries, a chip maker which accounts for about 18% of the combined company’s assets.
Some questions still to be answered are what might happen to investments that are considered as non-core. The company has not officially commented on rumours ofan investment partnership with Softbank of Japan, for example.
Four other board members were named including the following:
Hamad Al Hurr Al Suwaidi comes from Ipic and has held a number of senior government and government-related board positions in Abu Dhabi, including being a memberof the Supreme Petroleum Council.
Mohammed Al Bowardi is the Minister of State for Defence Affairs. He has been head of the water and electricity regulator in Abu Dhabi and is vice chairman of
Mubadala’s Dolphin Energy unit, which brings gas from Qatar.
Abdulhamid Mohammed Saeed, whose positions include managing director of FGB and Reem Investments.
Mahmood Al Mahmood is the chief executive of ADS Holding, a privately held financial services firm based in Abu Dhabi.
ARAMCO EXPECTS MARINE COMPLEX OPERATIONAL BY 2021

National oil giant Saudi Aramco expects a huge ship repair and shipbuilding complex that it is developing at Ras al-Khair on the kingdom's east coast to befully operational by 2021, chief executive officer Amin Nasser recently said.

The first part of the shipbuilding complex will be ready by 2018, and it will eventually make oil rigs and tankers, Nasser told reporters during a rare mediavisit to company facilities in Dhahran.

A presentation by the company showed the complex would create 80,000 jobs and allow Saudi Arabia to reduce its imports by $12bn, while increasing the country'sgross domestic product by $17bn.

Under a sweeping economic reform programme announced last month, Aramco is to play a big role in developing industrial projects as Saudi Arabia tries to diversifyits economy beyond reliance on oil exports.

EGYPT SEEKS $24BN INVESTMENT IN POWER PROJECTS

Egypt is studying new energy pricing structures to facilitate private sector investment in power projects worth $70 billion that are expected to be carriedout in the next six years, a government advisor said.Sherif Atifa, advisor to the investment ministry, told Zawya that Egypt hopes to attract investment of $24 billion in the planned power projects that aim toresolve frequent electricity shortages and support economic development in the Arab world's most populous country.

Egypt needs to increase its average power production by 5.2 gigawatts (GW) per year by 2022 to keep up with demand. The country's energy mix is largelydependent on oil and gas at 91%, with hydroelectric power providing just 8%, according to data from the Ministry of Electricity and Renewable Energy.Last year, the electricity ministry said 24 agreements and memorandums of understanding (MOU) for energy projects worth around $70 billion had been signedat an investment conference in Sharm El Sheikh, including projects for electricity generation, transmission lines, power plant expansions and renewableenergy projects utilising solar, wind and coal.In 2014, Egypt said it plans to gradually reform the country's energy subsidy policies and that energy prices would be fully liberalised by 2019 under afive-year plan to cover much-needed capacity expansions at power plants. The 2015-2016 state budget has allocated $3 billion in energy subsidies.The reform plan includes an increase in electricity prices, except on residential consumers using less than 200 kilowatt per hour a month, as tariffs havebeen frozen for this category to protect households with low income.Gas shortages and ageing state-run infrastructure have led to frequent power outages in Egypt, especially during the summer months when demand is high andelectric grids are overloaded by more than 3,000 megawatt (MW), according to the electricity ministry.Last September, Minister of Electricity and Renewable Energy Mohamed Shaker told Daily News Egypt that the country planned to add 14,400 MW to the nationalgrid within two years through three new power plants under an agreement with German industrial company Siemens. The minister was quoted as saying that theprojects represent around 40% of total capacity of the electricity grid.In June 2015, Siemens signed a $9 billion agreement with Egypt to supply gas and wind power plants to boost the country's electricity generation by 50%.

The order includes 12 wind farms in the Gulf of Suez and West Nile areas, comprising about 600 wind turbines and an installed capacity of 2 GW.Government advisor Atifa said that Egypt hoped to increase the contribution of renewables in the energy mix to 20% by 2022 from 8-9% now. He said thattotal investments in renewable energy projects currently being implemented stand at more than $13 billion.

BP AWARDS TWO NEW CONTRACTS FOR SOUTH DENIZ

BP has awarded two new contracts for its Shah Deniz stage 2 project, which is located in the Caspian Sea.

The biggest contract has been awarded to FMC Kongsberg Subsea, which secured a $297mn deal for the supply of subsea production systems.

“This award continues our multi-year support for BP on this project,” said Tore Halvorsen, FMC Technologies' senior vice president, Subsea Technologies.“Our close cooperation on this project has accelerated the transition to the manufacturing stage and enabled us to reduce the lead time delivering the project.”

In addition, OneSubsea won a $66mn contract for the second of three planned batches of subsea production trees and ancillaries required for the project.

The delivery of equipment will take place in stages from 2016-2021.

TECHNIP AND BAPCO SIGN $55MN FEED DEAL

EPC contractor Technip have signed a $55mn front end engineering design (FEED) with the Bahrain Petroleum Company
(Bapco).
BAPCO Chief Executive Dr Peter Bartlett and Technip CEO, Marco Villa formalised the agreement.
Villa told the Bahrain News Agency after the signing ceremony, the $55 million deal is the beginning of a very
important project that could result in a very long standing relationship.Technip Bapco is an important reference, he added. The importance of this project, said the CEO, should be understood in the light of a global trend to enhance refineries and make them more profitable. "With the technology we offer, the refinery can cope with the continuous upgrade and the stringent regulations refineries are expected to follow by global bodies," he said.The FEED is expected to have an impact on the downstream projects, he added.
The CEO of BAPCO said that Technip and BAPCO we're collaborating on the project and the final plan would be put up to the board of directors and the rulers of Bahrain for review and further investment in the next 18 months. "What we
are doing now is getting ready to put the cost estimates to be presented before both the board and the government,"
he added.
This forms part of the BAPCO Modernisation Programme (BMP), said the Chairman of the Board, Adel Al Moayyed. He said that it is expected that Technip will complete the critical front end development work for this mega-project
by early 2016.
The BMP aims at improving gross margins and ensuring that the refinery remains competitive in the near future.
The chairman stressed on Bapco's adherence to the 'one-team' team, which he said has always been a part of the
company's work culture in a diverse multi-cultural environment reaping rich dividends for the company.

MIDDLE EAST OIL DEMAND IN AUGUST 2014

In Saudi Arabia, June 2014 oil demand was characterized by continued healthy growth. All product categories
increased during the month with the exception of jet/kerosene and fuel oil. Robust increases were recorded
in crude oil for direct burning, diesel oil, LPG and gasoline, matching the development and expansion in the
petrochemical sector as well as the road transportation sector. Growth in the road transportation sector
was also supported by gains in auto sales and the seasonal pickup in demand during the holy month of Ramadan,
while increases in crude oil for direct burning were recorded as a result of new mega projects in the country
in addition to increased usage of air conditioning during the summer months.
Oil demand also grew at a robust pace in Kuwait during June 2014 as a result of healthy increases in
transportation fuels, namely gasoline and jet/kerosene, which increased by more than 30% as compared to
June 2013. Overall oil demand increased by more than 10% in June 2014 as compared to June 2013.

In Iraq, oil demand requirements in June decreased for the first time since November 2013, down by almost
12% y-o-y, with all product categories registering declines. The outlook for 2014 Middle East oil demand
remained unchanged since last month’s projections with risks being equally distributed both to the upside
and downside. For 2014, Middle East oil demand is expected to grow by 0.31 mb/d, while oil demand in 2015 is
projected to increase by 0.30 mb/d.

Technip wins stake in $17bn Basra Gas project

Technip’s Abu Dhabi unit has been awarded a contract for Basra Gas, part of a $17 billion project to capture gas from Iraq’s southern oilfields. Basra Gas has been described as the world’s biggest flare reduction project by Shell and the largest gas project in the country’s history.

Technip’s front-end engineering design contract will cover the basic engineering design package of the natural gas liquids process units, utilities and the submission of an engineering procurement and construction package for Ar Ratawi Natural Gas Liquids production facility at North Rumaila. The French oilfield services provider did not disclose the value of the contract.

“The project is the first of the new greenfield associated gas processing facilities that will significantly

minimise gas flaring in Iraq and make energy resources available for power and domestic use,” a statement from Technip announced.

The plant began operations in April last year with an initial capacity to produce 400 million cubic feet a day, but once completed in 2017, the project will process 2 billion cubic feet a day. It captures associated gas, or natural gas found in oil deposits, from three oilfields in the south of Iraq – Rumaila, West Qurna 1 and Zubair.

Iraq’s government has a 51 per cent shareholding in Basra Gas, while Shell holds 44 per cent and Mitsubishi the remaining portion. Iraq signed the 25-year agreement with the two companies in November 2011.

L&T Hydrocarbon Wins $846 m EPC Contract for Kuwait Oil & Gas Facility

L&T Hydrocarbon - the wholly-owned subsidiary of L&T dedicated to oil and gas - has achieved a major breakthrough in the Middle East by securing a contract valued at KWD 239.7 million (approx. USD 846 million) from the Kuwait Oil Company (KOC). L&T Hydrocarbon will execute a complete Engineer-Procure-Construct contract for a Gathering Centre for KOC, a subsidiary of Kuwait Petroleum Corporation (KPC) and fully owned by the State of Kuwait.

Located in north Kuwait, the oil gathering facilities will receive crude from the Raudhatain fields.The Gathering Centre is designed for a multi-stage process that will separate 100,000 BOPD of crude oil, 240,000 BWPD of water and 62.5 MMSCFD of associated gas to meet the quality requirements of downstream operations.

The scope of L&T's contract includes project management, detailed engineering, procurement, supply, construction, testing, mechanical completion, pre-commissioning, commissioning assistance including performance testing.

The new facilities will support KOC's long term strategy for the development of the North Kuwait fields to increase oil production to 1 MMBOPD by 2015/2016.

The contract was won by L&T against stiff competition from European and Korean EPC majors. It represents a significant step forward in L&T's strategic growth plan in the international hydrocarbon sector. As with all other projects being executed by the L&T Group, the Gathering Centre project will maintain high standards of health, safety and environment, engineering, procurement, project and construction management, quality and delivery.

L&T's track record in Kuwait includes critical sections of oil refineries at Shuaiba and Mina Abdullah, an aviation fuel depot and supply of 22 reactors that were part of the country's 'Clean Fuel Programme'.

Hyundai Wins USD 1.94 Billion Offshore Order in UAE

Hyundai Heavy Industries Co., Ltd. (HHI), the world’s biggest shipbuilder and a leading offshore facilities contractor, announced that it received a Letter of Award (LOA) for a USD 1.94 billion order for the second package of the Nasr Full Field Development Project to build the fixed platforms and to lay subsea cables from Abu Dhabi Marine Operating Company (ADMA-OPCO) on July 7, 2014.

As per the LOA, HHI will undertake engineering, procurement, construction, installation and commissioning work for the super complex comprising a gas treatment platform, a separation platform, an accommodation platform; laying 144 km subsea power and 55 km infield cables; and modifying an existing manifold tower and two wellhead towers in Nasr oil field, 130 km northwest of Abu Dhabi, UAE.

Upon completion by the second half of 2019, the facilities will increase the daily oil production capacity of the offshore field to 65,000 barrels from the current 22,000 barrels.

SAIPEM AWARDED THREE CONTRACTS IN SAUDI ARABIA

Saipem has been awarded by Saudi Aramco three contracts in Saudi Arabia for onshore engineering and construction
activities.
Two EPC contracts relevant to the Jazan Integrated Gasification Combined Cycle project are to be located near the
city of Jizan, in southwestern Saudi Arabia.
Package 1 contract comprises the Gasification Unit, the Soot/Ash Removal Unit, the Acid Gas Removal and the Hydrogen Recovery Units. Package 2 contract includes six Sulphur Recovery Unit (SRU) Trains and relevant Storage Facilities.
The scopes of work of both packages include engineering, procurement, construction, pre-commissioning, assistance to commissioning and performance tests of the concerned facilities. These two packages are part of the current Saudi Aramco development of the largest gasifier-based power facility built in the world, adjacent to its new Jazan Refinery & Terminal project. The power plant will be based on gasification technology and the primary feedstock to the power plant will be the vacuum residue produced in the refinery as well as high sulfur fuel oil. The power plant will serve the
refinery power needs and export a large amount of power to the national grid.
As part of the Jazan Economic City, Saudi Aramco’s Jazan Refinery and Terminal Project is part of its strategic intent
to facilitate a diversified and sustainable expansion of Saudi Arabia’s economy and enable a globally competitive and
vibrant Saudi energy sector. The Jazan Refinery and Terminal Project itself will provide more than 1,000 direct jobs
in addition to 4,000 indirect jobs. Furthermore, Saudi Aramco has awarded to Saipem an EPC contract for the Loops 4 & 5 of the Shedgum-Yanbu’ Gas Pipeline,linking Shedgum to Yanbu’.
The scope of work of this third contract includes detailed design, engineering, procurement, installation, commissioning
and start up assistance for two pipelines, which will be completed in the second half of 2017.

HH SHEIKH HAMAD OPENS $100M FUJAIRAH OIL TERMINAL

The Emirate of Fujairah further cemented its place as one of the biggest world oil & gas storage hubs with the unveiling of Emirates National Oil Company’s (ENOC) new $100m oil & gas distribution terminal.His Highness Sheikh Hamad Bin Mohammed Al Sharqi, Member of Supreme Council and Ruler of Fujairah, officially inaugurated the $100 million Horizon Fujairah Distribution Terminal at the opening ceremony.

The new oil terminal built by Horizon Terminals Limited (HTL), the terminals business and wholly-owned subsidiary of ENOC, has a storage capacity of over 240,000 cubic metres and is directly linked to the oil tanker berths in the Port of Fujairah.

His Highness Sheikh Hamad unveiled a commemorative plaque to mark the official inauguration. The ceremony was attended by representatives of the Fujairah Government; Saeed Khoory, chief executive officer, ENOC; Yusr Sultan,managing director - Terminals, ENOC; and the senior management of ENOC and HTL.

Commencing its soft operations in 2013, the oil terminal is the 11th in the portfolio of HTL, and has 10 bays of tanker truck loading racks, associated facilities, an advanced maintenance workshop, and marine receipt and loading pump house. It is fully equipped to meet the growing demand for storing bulk liquid oil products such as fuel oil,naphtha, gasoline, gas oil, jet fuel and LPG, among others.

“We are thankful to His Highness Sheikh Hamad Bin Mohammed Al Sharqi and the Fujairah Government for their visionary guidance and consistent support, which has established the Emirate as one of the key global hubs for the oil and gas storage business. The terminal further strengthens the storage capacity offered by Fujairah, which will serve the needs of the Gulf region that accounts for nearly 50 per cent of the world’s crude oil reserves,” said Khoory.

The second such facility of HTL in Fujairah, the terminal is the company’s sixth in the UAE. Another new terminal is being developed in Jebel Ali with a storage capacity of over 141,000 cubic metres

TOTAL LOOKS AT BUILDING PETROCHEMS COMPLEX IN IRAQ

French oil giant Total is looking at building a ‘world-scale’ petrochemical complex in Iraq as part of its strategy to develop its activities in the Middle East’s growth markets, the company told AFP.

The head of Total’s refining and chemicals division, Patrick Pouyanne, said he signed a preliminary accord with Iraq’s industry ministry in November 2013 to examine the feasibility of the complex in the southe Iraqi port of Basra.

“They are exploratory discussions at this stage that should be confirmed in coming months,” a company spokeswoman said.Total did not put a value on the mooted project, or a time frame.

Total wants to boost its refinery and chemicals activities in the Middle East and Asia, where it sees better long-term prospects than in Europe, where competition is pressuring margins.

Pouyanne told AFP that Total wanted to reinforce its downstream activities. “Given its past and present in Iraq, the group is naturally interested in adding value to the gas resources in this country.”

Total currently invests 15 per cent of its capital in the Asia-Middle East zone, and wants to bring that to 30 per cent by 2017.

UAE’S TAQA PLANS $1.2BN INVESTMENT IN KURDISTAN OILFIELD

Abu Dhabi National Energy Company (Taqa) plans to invest about $1.2 billion developing the Atrush oil and gas block in the autonomous Kurdistan region, the head of Taqa’s Iraq operations said on Monday.
Taqa plans to invest more than $300 million in the first phase of the project. Abu Dhabi National Energy Company(Taqa) plans to invest about $1.2 billion developing the Atrush oil and gas block in the autonomous Kurdistan region,
the head of Taqa’s Iraq operations said on Monday. Taqa, which is majority owned by the government of Abu Dhabi,won approval from the Kurdistan Regional Government (KRG) to develop the block in late 2013.It expects to invest more than $300 million in the first phase of the project, with first oil from the 30,000 barrel per day (bpd) first phase expected in early 2015. Subject to KRG approval and further field appraisals, a second phase could add 30,000 bpd of oil production, along with some associated gas for the domestic market.

“Iraq is very much core to Taqa,” Leo Koot told Reuters in an interview on the sidelines of a conference in Abu Dhabi.“The investment in the next three phases will be similar to the first phase and production should be around 100,000 to 120,000 bpd of oil in four years,” he said. Deals between foreign investors and the KRG to develop oilfields have angered the federal government in Baghdad, which rejects them as illegal.Abu Dhabi’s former state utility is expanding a power plant in Kurdistan, which should be completed in mid-2015, but it also hopes to build gas-fired power plants in southern Iraq to help Baghdad to overcome power shortages. “We’ve had good discussions with the Iraqi government,” Koot said, declining to go into details about the plant talks.

DUBAI WINS EXPO 2020

DUBAI TO HOST WORLD EXPO 2020

In a strong showing that was only to be expected, the UAE beat the competition in the crucial voting rounds to grab the rights to host Expo 2020.

The World Expos, held every five years, is a trade exhibition that attracts millions of visitors to the host country. The UAE made it clear early in its campaign that it was determined to host the event.

Dubai set the tone for their win in the very first round of voting, leading all other aspirants, including heavyweights Russia and Turkey.

The UAE’s performance improved with each vote. They improved their first round showing of 77 votes by gaining 10 more votes in the second round, while heavyweights Russia improved by only two. This gave credence to the fact that any political maneuverings that had been expected by countries had been negated by the sheer confidence of the UAE’s performance. President His Highness Shaikh Khalifa Bin Zayed Al Nahyan called His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, to congratulate him on the win.

Crucial ballot

The crucial ballot to determine the winning bid took place at the Organisation for Economic Cooperation and Development centre (OECD) after a series of 20-minute presentations by the bidding candidates.

The UAE set the pace with Reem Al Hashemi, Minister of State and Managing Director of the Bid Committe, make the inaugural address. Her speech and the video presentation that followed was brimming with sincerity and simplicity and two qualities have always been the UAE’s hallmark.

“Today I stand before you delivering the most important speech of my life. We would be honoured and privileged to hostExpo 2020 in Dubai. We began this journey with a view that we were willing to understand what the future would be and we explored ideas and thoughts. Then we defined the road map for Dubai Expo 2020. I hope in this journey you have understood us better: that we remain determined to deliver an inclusive expo. His Highness Shaikh Mohammad Bin Rashid

Al Maktoum attended this assembly in the initial stages and he instructed us to deliver the strongest possible bid. Today, we are joined by 10 Federal Ministers and under the guidance of Shaikh Ahmad Bin Saeed al Maktoum we deliver to you the strongest file we can. The Expo team we formed in 2011 is still with you today.”

The bid for Expo 2020 is in line with Dubai’s ambitions for the future. It sends out a strong message to the rest of the world with this unprecedented win, the first for a Middle Eastern country. They are willing to ‘connect minds and create the future’according to the tenets of their bid. and nowhere could that be more possible than in the UAE.

“All our future plans fall into place with Expo 2020,” said Shaikh Ahmad. “The Expo is not just for the UAE and its neighbouring regions, it is also for at least two billion people who live in this extensive region. It is for everybody.” An estimated total funding of €6.5 billion have been earmarked for this event with €5.2 billion s anticipated as capital investment for the Expo’s infrastructure environment.

Dubai’s economy is set to receive an added value boost of roughly €17.7 billion. More exciting, however, will be the innumerable opportunities that will be created boosting the growth of tourism and logistics in the UAE and ME.An estimated 25 million visitors are set to arrive in the country as a result of a successful bid, thus influencing tourism, trade, infrastructure and investment. Sultan Bin Saeed Al Mansouri, Minister of Economy, however, feels that this number is conservative and by the time people transfer the merits of Dubai by word of mouth the total could swell to 100 million.

A total of 270,000 jobs will also be conceived to cater to an expanded economy.

CB&I WIN $70M SAUDI CRUDE STORAGE TANK EPC PROJECT

US EPC contractor CB&I announced it has been awarded a contract valued in excess of US$70 million by Petrofac
Saudi Arabia Co. Ltd.The project scope includes the engineering, procurement and construction of crude oil storage tanks at a grassrootsrefinery being constructed in Saudi Arabia.
"CB&I has provided tank and plate structure engineering, procurement, fabrication and construction services for
projects in Saudi Arabia since the 1930s," said Luke Scorsone, president of CB&I's Fabrication Services operating
group."Today, we operate a world-class fabrication facility, equipment yard and project office in Saudi Arabia.
This presence, along with our commitment to local clients, has led to safe, high-quality and reliable performance
in Saudi Arabia over the last eight decades."

DANA GAS AWARDS ZORA FIELD CONTRACT

Dana Gas has awarded Adyard Abu Dhabi the contract for the offshore platform components for its Zora gas field located offshore Sharjah and Ajman in the UAE.

The shared field between the Sharjah and Ajman Governments is located around 40 km off the coasts of the two emirates.The aim of the Zora project is to extract the reserves from the Zora field through an offshore facility and to transport the reserves via a 35km subsea pipeline to an onshore gas processing facility. The facility will be located in Sharjah onshore area.

Patrick Allman-Ward, chief executive officer of Dana Gas, said: “This contract is the first strategically significant development towards bringing the Zora gas field on-stream. The capital investment of $160 million in the project during the project execution phase will contribute to the local and regional economy.”
The US$17 million contract for the fabrication of an offshore platform will include the manufacture and erection of the structure and the different deck levels. Adyard will also prepare the finished platform for safe and secure loading onto a transportation vessel. The platform will eventually be installed in a water depth of 24 meters, along with associated facilities.
The UAE-based firm said that it expects to start delivering 40 million cubic feet per day of gas in the first half of 2015 from the Zora gas field.Dana Gas is 100 per cent operator of the field and the Zora facility will be the firm's first operation located in Sharjah.Rashid Al Jarwan, Executive Director, Dana Gas added: “Dana Gas is proud to play its positive role in developing the Zora gas field, marking the first exploration and production project for the company in the UAE and GCC region."

KENTZ AWARDED TWO EPC CONTRACTS FOR MIDDLE EAST

Kentz has been awarded two engineering, procurement and construction (EPC) contracts in the Middle East region, valued at US$18mn.

The first contract was provided by Abu Dhabi Gas Industries Limited (GASCO) for the replacement of the existing controlsystem and associated electrical and instrumentation services in the onshore oilfields of Habshan.
The scope of the contract also covers multi-discipline engineering and construction disciplines with upgrades to theinjection compressors, including the replacement of the existing control system with new technology, compressorauxiliary panels and gas turbine field instrumentation, according to company sources.
Kentz added that the second contract was for an unnamed Abu Dhabi client, whereby the company is expected to executemultiple services under the management of a specialist contractor.
CHINA SONANGOL SIGNS DEAL TO BUILD CRUDE OIL REFINERY IN DUBAI

Authorities in Dubai have confirmed that a Memorandum of Understanding (MoU) has been signed with China Sonangol to build a crude oil refinery in the emirate. The agreement was signed by Sheikh Ahmed Bin Saeed Al Maktoum, chairman of the Dubai Supreme Council of Energy (DSCE) and Sam Pai, chairman of China Sonangol.

Authorities said the state-of-the-art refinery will process end products of crude for domestic as well as targeted international markets.A project consortium will also be created to oversee the front-end engineering, design, green-field project financing and process flow management.Dubai-based Noor Investment Group is expected to be the financial advisor to DSCE.

DAEWOO WINS $709 MILLION CONTRACT AT AKKAS FIELD

Daewoo Engineering and Construction has been awarded an EPC contract to upgrade the Akkas gas field in western Iraq according to Dow Jones.The South Korean company is said to have completed the project worth US$708.6 million within 46 months, the newswire said citing a statement released by Iraq’s cabinet.According to the statement Daewoo will commission a central processing facility at the field which is in the Anbar province of Iraq. The field lies near

the border with Syria.
Korea’s Kogas is developing the Akkas field, which holds an estimated 5.6 Tcf of gas. In April gunmen attackedfacilities on the field killing three people before abducting two workers and setting their camp alight. At the time,the field was still not producing any gas.The attack was thought to be a result of the increasing amount of armed groupactivity in the region as a result of the war in neighbouring Syria.
SAUDI ARABIA AWARDS $22.5B METRO RAIL CONTRACTS

It is the world’s largest public transport system under development

Riyadh: The Saudi Arabian government awarded $22.5 billion (Dh82.6 billion) in contracts to three foreign-led consortiaon Sunday for the design and construction of the first metro rail system in the capital, Riyadh.The project, which will involve six rail lines extending 176 kilometres and carrying electric, driverless trains, isthe world’s largest public transport system currently under development, Saudi officials said.
US construction giant Bechtel Corp. heads a group which won a $9.45 billion contract to build two lines, the governmentannounced. Its partners include Germany’s Siemens Aktiengesellschaft and US-based AECOM.A consortium led by Spain’s Fomento de Construcciones y Contratas, and including France’s Alstom Transport andSouth Korea’s Samsung C&T Corp, won a $7.82 billion contract for three lines.Italy’s Ansaldo STS headed a group that won a $5.21 billion order. Its partners include Canadian firm Bombardier and
India’s Larsen & Toubro.Design work will start immediately and construction will begin in the first quarter of 2014, the government said.The project is expected to be completed in 2019.
Employment
The project “will be a major driver of employment and economic development,” said Ebrahim Bin Mohammad Al Sultan,head of the government body overseeing the project. “It will also help to reduce traffic congestion and improve airquality.” Flush with cash after more than two years of high oil prices, Saudi Arabia is pumping billions of dollarsinto infrastructure projects designed to improve living standards and ease social discontent in the wake of the 2011uprisings elsewhere in the Arab world.Last August, the government approved a $16.5 billion plan to modernise thetransport system in the holy city of Makkah,including creating a bus network and a Metro system.It is also buildingseveral other rail systems, including a 2,750-km line running from Riyadh to near the northern border with Jordan.Saudi officials said Riyadh’s population was projected to grow from 6 million to over 8 million in the next 10 years,making the Metro vital to ease congestion and pollution in the capital’s streets.In addition to raising living standards, the government says it wants to upgrade the country’s infrastructure to helpthe economy diversify beyond oil, making it less vulnerable to any future plunge of global oil prices.
The contracts may provide a welcome financial boost to some Western construction companies struggling with slow economicgrowth in their home markets and state austerity policies in debt-choked Europe.
JEBEL ALI NEW TERMINAL EXTENSION OPENED, UP & RUNNING

DP World Chairman welcomes mega-vessel to Jebel Ali port's new 1 million TEU Terminal 2 expansion.HE Sultan Ahmed Bin Sulayem, Chairman, DP World, officially opened the new extension to Container Terminal 2 (T2) at flagship Jebel Ali Port, welcoming one of the largest container ships afloat, the MSC La Spezia.A red carpetwelcome was given to the 366-metre long vessel, which has 14,000 TEU (twenty-foot equivalent container units)capacity.

The expansion adds 1 million TEU to take capacity at Jebel Ali Port to 15 million TEU, extending the T2 quaywall by 400 metres to 3,000 metres. This allows the simultaneous handling of six mega ships. Together withContainer Terminal 3, which is now under construction, Jebel Ali Port will reach 19 million TEU capacity by 2014and will be able to handle 10 of the giant new generation vessels at the same time – the only port in the regionable to do so.

During a quay-side ceremony, HE Bin Sulayem presented the ship’s master, Captain Dirk Radig, and Nigel Fernando,Mediterranean Shipping Company (MSC) General Manager, with a commemorative gift to mark the occasion. The ceremonywas also attended by HE Jamal Majid Bin Thaniah, Vice Chairman, Mohammed Sharaf, Group Chief Executive Officer,Mohammed Al Muallem, Senior Vice President and Managing Director, DP World, UAE Region and other senior DP Worldofficials.

DNO INTERNATIONAL EXPANDS EXPLORATION IN OMAN, YEMEN

DNO International ASA, the Norwegian oil and gas company, announced that it has been selected by the Ministry of Oil

and Minerals of the Republic of Yemen as successful bidder for onshore Block 84. The Company also announced that it
has separately entered into a farm-in agreement with respect of Block 36 onshore in the Sultanate of Oman.
DNO Yemen AS has been awarded a 59.5 percent participating interest (70 percent paying interest) and operatorship of
Block 84, joining Turkey's Dogan Enerji Yatirimlari Sanayi ve Ticaret A.S. with a 25.5 percent participating interest
(30 percent paying interest) and Yemen Oil and Gas Corporation, a state company, with a 15 percent participating
interest. The partners will acquire new 3D seismic and drill two exploration wells during the first exploration period.
The Block 36 farm-in agreement provides for the transfer to DNO Oman AS of a 75 percent participating interest
(100 percent paying interest) from Allied Petroleum Exploration Inc. The Company will assume operatorship and fund
reprocessing of existing and acquisition of new 2D seismic data and drilling of two exploration wells.
"Block 84 in Yemen and Block 36 in Oman expand our footprint in two core areas in which we have extensive subsurface
knowledge and operating history," said Bijan Mossavar-Rahmani, DNO International's Executive Chairman. "And we are
building up our pipeline of exploration prospects with a focus on materiality and early execution," he added.
Block 36 is located in the Rub al Khali basin and covers a surface area of more than 18,000 km2. Two exploration
wells previously drilled in the block have confirmed the presence of source rock in the basal Silurian hot shale,
an organic-rich shale that has sourced the majority of the oil and gas fields discovered in the Arabian Peninsula
and North Africa. Multiple stacked potential reservoir units have also been identified and mapped on the existing
seismic data comprising 10,000 km of 2D seismic data complemented by high-resolution gravity and aeromagnetic surveys.Technical work to date suggests potential lead sizes in excess of 100 million barrels.
Block 84 onshore Yemen covers a surface area of 731 km2 and is located in the Masila-Seiyun Basin, adjacent to
Block 14 where more than one billion barrels of oil have been discovered. The Company already holds interests in five
onshore Yemen Blocks, two of which, Blocks 43 and 47, are also located in the Masila-Seiyun Basin.
Completion of the Block 36 transfer is subject to satisfaction of certain conditions, including approval by the
Ministry of Oil and Gas of the Sultanate of Oman. The award of Block 84 is subject to customary government approvals
and ratification of a Production Sharing Agreement.
DAELIM WINS $293M EPC CONTRACT FOR SAUDI BUTANOL PLANT

Saudi Kayan Petrochemical Company (Saudi Kayan) announces that the Saudi Butanol Company (SaBuCo) signed a contractualagreement with Daelim (a South Korean based manufacturing company) on July 5, 2013 to construct the Butanol plant at acost of SR 1,100 Million. Construction is scheduled to begin in January 2014 with project completion anticipated forMay 2015.

SaBuCo is a special purpose joint venture company established by Saudi Kayan, Sadara Chemical Company (a joint venturedeveloped by the Saudi Arabian Oil Company and The Dow Chemical Company), and SAAC (Saudi Acrylic Acid Company whichis owned by TSOC, an affiliate of Tasnee Company and Sahara Petrochemicals Company) for the purpose of owning andfinancing a butanol production facility. The design capacity of this plant is 330,000 metric tons per annum of n-butanoland 11,000 metric tons per annum of iso-butanol. It is scheduled to start its trial run in the second quarter of 2015.The trial period is expected to last between 3 to 6 months with the financial effect realized in the financial
statements after announcing the commercial operation.
PETROFAC WINS US50M OMAN CONTRACT

Sharjah-based oilfield services company Petrofac have signed a US$50 million operations and maintenance deal with

Oman Oil Company Exploration and Production (OOCEP).
The three year contract will see Petrofac deliver operations and maintenance at two new production facilities that
are currently under construction, Musandam Gas Plant in Bukha and Abu Tubul gas facility.
Petrofac will design and implement an Operations Management System on behalf of OOCEP and manage the initial
transition from the commissioning to full operating phase.
Bill Dunnett, Managing Director, Petrofac Offshore Projects & Operations said: “This contract award reflects our
strong track record in supporting and enabling asset owners through the provision of operations and maintenance
services, both in the North Sea and in the Middle East and North Africa."
OOCEP’s new Musandam Gas Plant comprises an onshore plant and utilities for receiving well fluids from offshore
platforms in the West Bukha field; and the Abu Tubul onshore development in central Oman will comprises multiple
production wells, connected via a gathering and trunk line system to a gas processing plant.
“Musandam Gas Plant and the Abu Tubul onshore development are critical assets for developing Oman Oil’s oil and
gas capability,” Salim Al-Sibani, CEO of OOCEP added.
WORLEYPARSONS AWARDED CONTRACT FOR AL SHAHEEN FIELD

Maersk Oil Qatar A/S (Maersk Oil) has awarded WorleyParsons Qatar WLL a four year "General Design Contract"

to conduct engineering design modifications and material definition for works associated with the Al Shaheen
offshore oil production facilities operated by Maersk Oil in Qatar. The Al Shaheen field is located in
Block 5 offshore Qatar and is operated under a production sharing agreement on behalf of Qatar Petroleum.
WorleyParsons Qatar will provide brownfield design engineering services ranging from front-end engineering
to detailed design, to yield enhanced operation, production, safety and efficiency improvements for the
existing facilities; and if so defined by Maersk Oil, design services for additional production and/or
operational facilities.
Under the "General Design Contract", WorleyParsons Qatar will perform a significant volume of professional
services man-hours with an estimated revenue of approximately USD$90 million.
The contract also provides a framework for the development of a mutually agreed set of key performance
ndicators, with an incentive scheme designed to promote and reward efficient performance and continuous
improvement.
Commenting, WorleyParsons’ CEO Andrew Wood stated: "We are delighted Maersk Oil has selected WorleyParsons
Qatar to be its partner for this programme. The breadth of scope of the services to be provided showcases
the capability we have in our Improve offering to assist our clients in managing their assets."
CHIYODA JV NETS QATAR REFINERY DEAL
A joint venture of Japan-based Chiyoda Corporation and Taiwanese CTCI Corporation has bagged the contract for the Engineering,Procurement, Supply, Construction and Commissioning (EPSCC) of the $1.5bn Laffan Refinery 2 (LR 2) Project. The Minister of Energy and Industry, Dr Mohamed bin Saleh al-Sada, Chiyoda Corporation chairman, Takashi Kubota and CTCI chairman and CEO, John T Yu formally signed the EPSCC contract for the second condensate refinery at Ras Laffan Industrial City, said a statement. To be constructed adjacent to the existing refinery, LR2 will have a daily production capacity of 60,000 barrels of naphtha,53,000 barrels of jet fuel, 24,000 barrels of gasoil and 9,000 barrels of liquefied petroleum gas (LPG).
AMEC awarded $528 million new refinery contract by KNPC, Kuwait

AMEC, the international engineering and project management company, has been awarded a $528 million Project Management Consultancy (PMC) contract by the Kuwait National Petroleum Company (KNPC) for a new oil refinery at Al Zour, Kuwait.

When completed in 2018 the multi-billion dollar refinery is expected to be the largest in the Middle East and will increase Kuwait’s refinery capacity by 615,000 barrels per day. It will be a key part of Kuwait’s long term strategy, producing cleaner fuels to meet its electrical power generation growth and demand while adhering to the latest environmental standards.

Hyundai wins Kuwait Bridge contract

Kuwait's Combined Group Contracting Company has signed a contract with South Korea's Hyundai Engineering & Construction Company.

The pact has been signed to design, build and maintain a major bridge in the Gulf state. Kuwait's Combined Group Contracting Co. will own a 21.5 per cent stake in the Sheikh Jaber al-Ahmad al-Sabah project.

Bahrain plans to set up $8bn rapid transport grid

Bahrain has earmarked BD3 billion ($8 billion) to set up a rapid transport grid.

GCC countries have already approved a $30 billion project to set up a 2,200km GCC Railway Network.

GCC states have also approved a series of railway transport projects in their respective territories amounting to a total of $106.2 billion.

Strabag Oman wins USD 207 million infrastructure contract

Strabag Oman has won an OMR 80 million contract from the Ministry of Transport and Communications to build access roads and a range of infrastructure at Duqm port.

In addition to the establishment of shipyard access, docks and warehouses the contract awarded by the Ministry of Transport and Communication of the Sultanate of Oman also comprises the construction of six, four and two lane expressways.
STRABAG was also commissioned to build drinking water and fire fighting water lines, waste water systems, irrigation systems and the electricity and telecommunications infrastructure.
Saipem awarded new E and C onshore contract of USD 350 million

Saipem won a new onshore E&C contract worth approximately USD 350 million in Saudi Arabia. The Lump Sum Procure and Build contract has been awarded by the Emarat of the Makkah Province for the implementation of new Storm water Drainage System within the framework of the Jeddah Storm water Drainage Program Package 8, to be developed in Jeddah, on the Western coast of Saudi Arabia.

The contract encompasses procurement, installation, construction and assistance during the commissioning of a new rainwater drainage system, serving the Northern side of the City of Jeddah.

The system, scheduled to be completed in 18 months will mainly be running in the Southern and Western areas around the King Abdulaziz International Airport of Jeddah and will provide a long term drainage solution into the Red Sea.

McDermott International bags two projects by Saudi Aramco

McDermott International has recently been awarded two projects by Saudi Aramco in the Abu Safah, Marjan and Safaniya fields in the Arabian Gulf.

The two projects consist of six topsides and a bridge that connects to the existing Marjan facilities. In addition, the project will require other associated modifications and brownfield work. The combined total weight of the structures will exceed 4,000 metric tonnes.

The North Dome project comprises procurement, construction and installation of two wellhead decks for Abu Safah and Marjan, and an auxiliary platform and access bridge for Marjan.

The second project comprises procurement, fabrication, transportation and installation of three electrified production deck modules in the Safaniya and Marjan fields.

Qatar refinery to start expansion

Qatar will start work on expanding the recently inaugurated Ras Laffan condensate refinery in early 2011.

The 146,000 barrels per day (bpd) Ras Laffan plant, which currently produces 24,000 bpd of gas oil, 52,000 bpd of kerosene and jet fuel and 8,000 bpd of liquefied petroleum gas (LPG) will be aimed at markets in Southeast Asia and Europe.

Contracts for the second phase of the refinery are expected to be awarded by the first half of next year.

The biggest product stream at the plant will be the petrochemical feedstock and gasoline component naphtha.

Naphtha output at the refinery will be 63,000 bpd, and Asia will be the main export market for the light fuel.

Kerosene and jet fuel produced at the refinery will be shipped mainly to western markets, and the gas oil output will be redirected into the local Qatari and regional Middle Eastern markets.

State-funded Qatar Petroleum operates the Ras Laffan refinery and has a 51 percent stake. Other shareholders are Total with 10 per cent, Exxon Mobil with 10 per cent, Cosmo with 10 per cent, Idemitsu with 10 percent, Mitsui with 4.5 per cent and Marubeni with 4.5 per cent.

Siemens signs USD 201 million power deals with Qatar

Trade Arabia reported that Siemens has signed 2 major contracts worth a total of USD 201.3 million with Qatar General Electricity & Water Corporation that aim to improve the power infrastructure in Doha.

Under the first contract, worth USD 188 million, Siemens will supply to Kahramaa equipment for Phase 10 of the Qatar Power Transmission System Expansion project that will ensure uninterrupted power supplies to households, business centers, shopping malls, hospitals and schools throughout Doha.

The equipment includes gas insulated switchgear, power and earthing transformers, shunt reactors, protection relays, relay protection panels and substation control systems for substations located in and around the capital.

The Phase 10 project will be broken down into two stages with Stage 1 consisting of six 66/11 KV turnkey substations and Stage 2 comprising seven 132/66/11KV turnkey substations. Both stages are set to be completed over 2 years. The second contract signed today, worth USD 13.3 million includes the installation of approximately 17,000 smart meters and the supply of communication modules for 15,000 water meters.

Arabtec wins AED 561 million deal for Dubai airport expansion project

Arabtec Holding has won a AED 561 million contract from Dubai Aviation City Corporation to carry out infrastructure works related to the Dubai International Airport expansion project.

The project, which includes structural works, mechanical engineering and plumbing, and site works at Terminal 2 of Dubai International Airport, will have duration of 25 months once it commences.
Fluor plans to set up gas project in Abu Dhabi

Fluor Corporation has been named program management consultant (PMC) for the Shah Gas Development Project by Abu Dhabi Gas Development Company, in a contract worth $160 million.

Fluor will perform PMC services for the main process packages of the project and will oversee the overall program. The project is located in Shah, about 220 kilometers southwest of Abu Dhabi city.

The project will be led by Fluor’s Aliso Viejo, California operations centre along with its Abu Dhabi office. The project team will include up to 110 professionals with an expected completion in 2014.

Punj Lloyd bags contract to build bulk oil terminal in Dubai

Engineering and construction firm Punj Lloyd has bagged a contract from Horizon Terminals, an Emirates National Oil Company (ENOC) subsidiary, to build a bulk oil terminal.

The terminal inside the Jebel Ali Free Zone, along with a 60-km jet fuel pipeline to the Dubai International Airport, will have state-of-the-art oil terminal facilities with storage tanks having a capacity of 141,000 cubic metres, ENOC said in a statement.
Al Sufouh Tram Project (UAE)
Engineering,Procurement, Supply, Construction and Commissioning (EPSCC) of the $1.5bn Laffan Refinery 2 (LR 2) Project.
The Minister of Energy and Industry, Dr Mohamed bin Saleh al-Sada, Chiyoda Corporation chairman, Takashi Kubota and
CTCI chairman and CEO, John T Yu formally signed the EPSCC contract for the second condensate refinery at Ras Laffan
Industrial City, said a statement.
To be constructed adjacent to the existing refinery, LR2 will have a daily production capacity of 60,000 barrels of
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