As major national oil companies accelerate oil and gas production, the momentum for project activity in the Middle East is picking up again. Oil & Gas Middle East lists – in no particular order or ranking – the major contracts secured for diverse projects in the sector for the month of November 2022.
Editor’s note: This list is not a ranking.
1. Drilling rigs
Company: ADNOC Drilling
ADNOC Drilling Co on March 2 signed an agreement to purchase ten newbuild hybrid power land drilling rigs for a total of $252 million. The use of hybrid power solutions is an essential element of ADNOC Drilling’s “rigorous decarbonisation strategy,” the company noted.
The rigs use a high capacity battery and engine automation in parallel with the rigs’ traditional diesel generators. The hybrid power technology system stores energy in its batteries to use when there is a need for continuous power or to provide instant extra power when there is an increase in demand, reducing a rig’s greenhouse gas emissions intensity by 10% to 15%.
Each of the rigs will have the provision to be connected to the electrical grid with minimum adjustment, depending on rig location and the availability of grid power, further reducing emissions.
2. Design and engineering services
Company: Forum Energy Technologies
Houston-based technology provider Forum Energy Technologies (FET) secured a $25 million contract from Aramco for providing the design, engineering services and supply of four electrostatic desalter systems for an onshore project at the Safaniyah oil field in Saudi Arabia.
FET has a major presence in Saudi Arabia serving the oil, natural gas, industrial and renewable energy sectors through its unit in Dammam.
According to the contract, the desalter systems will utilize FET’s Edge desalting technology, ForuMix high efficiency multiphase mixer technology, as well as in-house manufacturing capabilities at its Saudi facility.
3. Offshore EPC contracts
Company: L&T
Indian contractor L&T secured multiple offshore EPCI contracts from Saudi Aramco under a long-term agreement (LTA) framework to which a select group of international contractors have access.
“The scope of work comprises engineering, procurement, construction and installation of offshore structures and upgradation of existing facilities,” the contractor said in a press release.
The scope of work comprises engineering, procurement, construction & installation of offshore structures and upgradation of existing facilities.
The company specified that as per its classification, the major project is in the range of over $600 million.
4. Integrated logistics services
Company: ADNOC L&S
ADNOC Logistics & Services (ADNOC L&S) signed a $2.6 billion contract with ADNOC Offshore to provide integrated logistics services for its new Integrated Logistics Services Platform (ILSP), one of the largest turnkey offshore logistics offerings in the world that is expected to coordinate end-to-end management of logistics and maritime operations at its base in Mussafah, Abu Dhabi.
The agreement with ADNOC Offshore runs for five years, with the option of a five-year extension, and includes the provision of port services, warehouse operations, heavy lifting, material handling and shipping, rig and barge moves, marine terminal operations and waste management services.
5. Construction
Company: Heavy Engineering Industries and Shipbuilding Co
Kuwait’s Heavy Engineering Industries and Shipbuilding Co (HEISCO) announced in a statement that it has secured a five-year contract from Kuwait Oil Co (KOC) for the construction of flowlines and associated works in West Kuwait Area.
The value of the contract is KWD 68.5 million ($223.7 million).
In August 2022, HEISCO announces that the company submits the lowest bid for this project.