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Legal and Finance

Maersk rig gets one more Martin Linge well

Maersk Drilling was awarded a contract by Equinor for the drilling of three wells and plugging of one on the Martin Linge field offshore Norway back in April 2020.

Maersk Drilling announced the addition of one more well to the rig’s campaign.

The contract has an estimated duration of 80 days, with work expected to start in September 2021 in direct continuation of the rig’s current work scope.

The contract value of the extension is approximately $29.5m, including integrated services provided, but excluding potential performance bonuses.

The contract extension is entered under the Master Framework Agreement between Equinor and Maersk Drilling, in which the parties have committed to collaborate on technology advancements and further initiatives to limit greenhouse gas emissions.

As the first of Maersk Drilling’s rigs to be upgraded to a hybrid, low-emission rig, Maersk Intrepid in late 2020 produced an initial data point of reducing fuel consumption and CO2 emissions during drilling operations by approximately 25%, compared to the baseline average for the rig, while NOx emissions were reduced by approximately 95%.

The contract with Equinor contains a performance bonus scheme based on rewarding reduced CO2 and NOx emissions.

Morten Kelstrup, COO of Maersk Drilling said: “We’re thrilled to add this additional work scope where Maersk Intrepid will again be utilising Managed Pressure Drilling to safely and efficiently deliver a high-pressure, high-temperature well at Martin Linge.

“Our collaboration with Equinor is focused on cost efficiency and responsible, low-emission drilling, and we look forward to continuing the journey we’ve started with Maersk Intrepid’s very promising first results within emissions reductions”.

Maersk Intrepid is an ultra-harsh environment CJ70 jack-up rig, designed for year-round operations in the North Sea and featuring hybrid, low-emission upgrades. It was delivered in 2014 and is currently operating at Martin Linge for Equinor.

CONTRACT AWARDS

DNV GL secures three-year services contract for Total’s UK assets

DNV GL has been awarded a three-year contract by Total E&P UK Ltd to provide multiple services across the full portfolio of the international operator’s oil and gas assets in the UK North Sea.

DNV GL, the independent energy expert and assurance provider will provide core services such as verification, classification and flag, risk advisory services and major accident hazard awareness training. These will be carried out for assets, including the Shetland Gas Plant, Elgin Franklin, Alwyn and continuing on Culzean and Gryphon.

The company has built and maintained a strong relationship, centred on trust, with Total following the Paris-headquartered operator’s acquisition of Maersk Oil’s production assets in 2018 – for which DNV GL was the incumbent safety services provider.

Hari Vamadevan, regional director, UK & Ireland, DNV GL, said: “As one of the largest operators in the UK, this contract award from Total is a key win for DNV GL and is a great start to the year. At a pivotal time for the oil and gas industry, our work with Total will focus on areas of safety, innovation and efficiency. We look forward to aligning with Total as the company continues its substantial investment in the drive to net zero.”

Jack Downie, head of development and innovation, UK & Ireland, DNV GL, added: “This contract will see Total use a broad range of DNV GL’s services to enhance its operations, and support its low carbon goals. Throughout our conversations with the Total team, we see forward-looking motivation and the desire to further develop the value we add to its operations, while further strengthening the bond between our organisations.”

NOV Wins Offshore Wind Vessel Deal in China

Chinese shipbuilder China Merchants Heavy Industry (CMHI) has awarded NOV a contract to design and supply equipment for GustoMSC NG-14000XL-G wind turbine installation jackup vessel to be built for OHT, a Norwegian heavy transport and installation contractor.

"In close collaboration with VIND Offshore Installation, a wholly-owned subsidiary of OHT, the design is specifically tailored to create a next-generation offshore wind installation unit with a significantly reduced carbon footprint," the company, which last year changed its name from National Oilwell Varco to NOV, said.

The vessel will incorporate a GustoMSC heavy lift crane with a maximum lifting height of up to 165 meters above deck. GustoMSC, an NOV subsidiary, is a Dutch company specialising in engineering and design in the offshore energy space.

"Designed with the future in mind, the jack-up vessel is fully capable of taking on the installation and maintenance requirements of new generation offshore wind turbine generators," NOV said.

"The GustoMSC rack and pinion jacking system onboard will have a variable speed drive that is uniquely integrated to offer high performance, reliability, and safety for hundreds of moves along with the lifespan of the vessel," NOV said.

In addition, the vessel is designed with an optimal hull shape, battery hybrid solutions, and an electrical control system to reduce emissions by 20% compared with similar-sized installation vessels. To further reduce the carbon footprint, the vessel is prepared for the use of fuel cells powered by hydrogen, the company added.

“Through this initiative, OHT firmly establishes its position as a leading, fully integrated Transport and Installation (T&I) company for offshore wind. In doing so, we are responding to client concerns about the lack of capable vessel capacity in the booming offshore wind market,” said OHL Chief Executive Officer Torgeir E. Ramstad.

“Developing this project with OHT and VIND Offshore Installation has been very exciting. Their focus on reducing emissions was inspiring, as well as their bold approach on targeting the upcoming supply shortage foreseen in the offshore wind installation market,” said GustoMSC Commercial Director Rutger Baan.

“We continue to expand upon and provide our core engineering, manufacturing, and project management expertise as the world expands its energy portfolio to lower-carbon sources and appreciate the opportunity to provide a total integrated package consisting of the design and supply of equipment for this wind turbine installation jack-up vessel.”

CMHI in Jiangsu will construct the vessel and will deliver it to OHT in the first half of 2023.

OHT, which has made a name for itself by transporting offshore oil and gas drilling rigs, dredgers, and other heavy machinery, has plans to transition from oil & gas to renewables by focusing its transportation fleet on offshore wind foundation, and turbine installation tasks.

The group plans to exit oil & gas markets entirely within 2026, with the exception of sustainable oil & gas decommissioning projects.

As for NOV, which has also been known for years as oil and gas equipment provider, it too is getting increasingly involved in the offshore wind space.

The company has, through GustoMSC, recently won a contract to design the first-ever Jones Act compliant offshore wind turbine installation vessel (WTIV). The vessel will be built by Keppel AmFels for Dominion Energy.

Chevron awards Worley engineering services contract

Worley has been awarded a global contract for early phase engineering services by Chevron USA, through its Chevron Technical Centre division (Chevron).

Under the contract, Worley will provide early phase engineering services to Chevron’s global upstream and downstream projects, both onshore and offshore, over a five-year period. The services utilise Worley’s digital design and optimisation tool, SeleXpress.

The contract will be executed by Advisian, Worley’s global consulting business, and will be led by the Houston office, supported by the global capability of Worley.

“As a global professional services company, we are pleased that Chevron has selected Advisian to help develop its upstream and downstream capability. This contract continues Worley’s long-standing global relationship with Chevron and supports Worley’s strategic focus on digital transformation and delivering a more sustainable world,” said Chris Ashton, Chief Executive Officer of Worley.

Petrofac Wins Two Contracts Worth About $300 Mln In Oman - Quick Facts

TecnhipFMC awarded EPCI contract for North El Amriya and North Idku

Petrofac Limited said Thursday it has been awarded two contracts, together worth around $300 million through Petroleum Development Oman or PDO.

Petrofac noted that the first contract is a direct EPC contract for PDO's Marmul Main Production Station or MMPS - Gas Compression project. The scope of work for the 30-month, lumpsum turnkey contract includes engineering, procurement, construction, commissioning, startup and initial operational support. The facility is located at Marmul in the South of Oman, about 800 kilometres from Muscat.

The second contract is a project delivery contract with Petrofac's partner and main PDO contract holder Arabian Industries Projects LLC, for selected PDO concession areas in the North of Oman.

The scope of this seven-year contract is for provision of reimbursable engineering services, integrated project support and management services, and has an option to extend for three years.

TechnipFMC has been awarded a significant integrated Engineering Procurement Construction and Installation (iEPCI™) contract by NIpetco and PetroAmriya, two Joint Ventures between Energean and Egyptian Natural Gas Holding Company (EGAS) and Egyptian General Petroleum Corporation (EGPC) for a subsea tieback located offshore Egypt on the North El Amriya and North Idku concession.

TechnipFMC will design, manufacture, deliver and install subsea equipment including the subsea production system, subsea trees, production manifolds, umbilicals, flexible pipelines, jumpers and associated subsea and topside controls.

This is the second project that TechnipFMC will execute for Energean using its integrated subsea model, thereby reducing the overall cost, project interfaces and associated delivery risks. TechnipFMC is currently partnering with Energean to develop the Karish gas field development in the Mediterranean Sea offshore Israel.

Jonathan Landes, President Subsea at TechnipFMC, commented: “We are proud and honored to be selected for this important development offshore Egypt. This project award showcases TechnipFMC’s position as the market and technology leader for integrated projects globally and demonstrates the benefits of our iEPCI™ solution for subsea developments. We will continue our long-term, collaborative relationship with Energean and are pleased to work again with EGPC and EGAS for the development of gas production in Egypt.”

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