Recruitment required in oil and gas sector

Industry analyst Rystad Energy believes there is a massive need for recruitment in the offshore oil and gas sector. New projects are being sanctioned and activity levels in the sphere starting to increase.

It says that the negative trend in employment in the oilfield service industry is levelling out. While there was a 35 percent reduction of the workforce between 2014 and 2016, the overall headcount at the top 50 oilfield service companies remained stable from 2016 to 2017.

Companies involved in the North American shale industry faced especially large cuts from 2014 to 2016, however these companies were the ones adding to their workforce last year.

Recruitment drive

Since the end of 2017, hiring has also been picking up within the offshore sector as rising prices encourage more offshore projects to be sanctioned. In 2018, Rystad Energy expects almost 100 projects worth about USD95 bn to be sanctioned. This compares to only 45 projects in 2016. An additional 100 projects are expected to be sanctioned in 2019, says Rystad.

Together with the expected growth in shale market, Rystad expects the oil service sector’s labour market to grow by 20 percent by 2020 – a level last seen in 2010.

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CapProCon a weekly e-newsletter detailing contract awards and developments in the oil and gas, power generation, mining, civil and industrial infrastructure sectors. To learn more, click here.

This website provides just a snapshot of what’s on offer in the CapProCon e-newsletter.

The newsletter, published in association with Heavy Lift and Project Forwarding International (HLPFI) magazine, is designed for those looking to identify project logistics opportunities relating to major industrial projects around the world, while aiding decision making and planning processes.

Saudi Aramco: Arabiah EPC deal, denies profits

Bloomberg has reported that Saudi Aramco made a net profit of USD33.8 bn in the first six months of 2017, making it the world’s most profitable company.

It is almost totally free of debt and enjoys production costs running at a fraction of the industry standard. The eye-catching numbers, if accurate, mean that the secretive Saudi energy giant is more profitable than Microsoft, JP Morgan and ExxonMobil combined.

Saudi Aramco said in a statement: “This is inaccurate, Saudi Aramco does not comment on speculation regarding its financial performance and fiscal regime.”

Saudi Aramco selects Arabiah contractor

Meanwhile, the Dhahran-based petroleum and natural gas company has selected SNC-Lavalin to install additional facilities for a major gas processing facility in Saudi Arabia’s Eastern Province. SNC-Lavalin will construct the Arabiah condensate handling facility and sour water disposal unit project at the Wasit gas plant. Work is already underway with a target completion date of late 2019.

saudi aramco. SNC lavalin

The Capital Projects and Contracts (CapProCon) e-newsletter, distributed every Monday, includes dozens more updates and developments. To learn more, click here.

Capital Projects – news in brief – April 18, 2018

A quick round up of major capital projects and industry developments witnessed this week. To learn more about the CapProCon e-newsletter, click here.

New Zealand’s Prime Minister Jacinda Ardern said her government “has a plan to transition towards a carbon-neutral future, one that looks 30 years in advance”. In a bid to hit this target, New Zealand will grant no new offshore oil and gas exploration permits.

The ban applies only to new permits and will not affect the existing 22 offshore exploration blocks in the energy-rich Taranaki region. The move by New Zealand comes weeks after Shell sold its final oil and gas permits and producing assets to Austrian firm OMV.

Oil capital projects

Also the oil and gas arena, BP said it has approved the development of Ghazeer, the second phase of the giant Khazzan gas field in Oman, in cooperation with Oman Oil Company Exploration & Production. The final investment decision (FID) for Ghazeer follows the successful start-up of Khazzan’s first phase of development in September 2017.

BP also revealed that it has established a strategic alliance with Petrobras committing to exploring potential commercial agreements in upstream, downstream, trading and across low carbon initiatives, inside and outside Brazil.

In the civil infrastructure field Reliance Infrastructure (RInfra) and Tata Projects have won five contract packages for the Mumbai Metro line-4 project. Meanwhile, construction of the 473 km-long four-lane highway between Nairobi and Mombasa, Kenya, will be delayed amid concerns that the country is taking on too much debt.

The Capital Projects and Contracts (CapProCon) e-newsletter, distributed every Monday, includes dozens more updates and developments. To learn more, click here.

New Zealand capital projcts
New Zealand has banned all new offshore oil and gas exploration permits. Source: Wikimedia Commons – Wikikiwiman

Oil project awards in brief

Various oil projects were announced over the past several days. To receive these updates, plus dozens more, directly to your inbox, please subscribe to the CapProCon newsletter.

Last week Total, Borealis, and Nova Chemicals said that affiliates of the three companies will form a joint venture focusing on petrochemicals on the US Gulf Coast.

The joint venture will include the under-construction 1 mn tonne per year ethane steam cracker in Port Arthur, Texas; Total’s existing polyethylene 400 kilotonne per year facility in Bayport, Texas; plus a new 625 kilotonne per year Borstar polyethylene unit at Total’s Bayport site, following a decision on the outcome of an acceptable EPC contract.

LTHE and Saipem deals

Meanwhile, L&T Hydrocarbon Engineering (LTHE) secured a USD341.79 mn EPC contract from Al Dhafra Petroleum Operations Company for field development in Abu Dhabi. The scope of the contract includes EPCC of flow lines, gathering facilities and pipelines to transfer crude oil and gas from Haliba fields to a processing facility at Asab. It also includes the installation of 132 kV and 33 kV overhead electrical transmission lines.

Finally, Saipem won a contract valued at approximately USD750 mn for the EPCC of new facilities at Duqm refinery in Oman.

duqm refinery oil projects

Power projects approved in Southeast Asia

The Capital Projects and Contracts e-newsletter contains dozens of project updates. See below two notable projects approved in the last week.

Mitsubishi Hitachi Power Systems (MHPS) has received a full-turnkey order for the EPC of a 5,300 MW natural-gas-fired power plant. The project is planned by a joint venture of Thailand’s Gulf Energy and Mitsui & Co. The units will be installed at two plants located near Bangkok, with commercial operations due to begin in 2021 and 2023, respectively.

The plans call for two 2,650 MW gas turbine combined cycle (GTCC) power plants incorporating eight M701JAC gas turbines.

Meanwhile in South Korea, GE Power has been awarded a USD320 mn contract through its joint venture, KAPES, by Korea Electric Power Corporation (Kepco). It will provide equipment and expertise for a 4 GW HVDC transmission link from a power complex located in South Korea (pictured).

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Capital Projects and Contracts snapshot

A whole host of developments can be seen in the latest Capital Projects and Contracts (CapProCon) e-newsletter. Here’s a taster of what included in our most recent edition..

CG/LA Infrastructure has released its 11th annual Strategic 100 Global Infrastructure Report, which features a list of 100 projects representing over USD644 bn in expected investment.

In 2018, the transit sector presents the highest number of opportunities with 20 projects with a combined value of USD115 bn. High-speed rail is second with seven projects at a value of USD106 bn. Bridges and tunnels come in third place with almost USD74 bn of investment spread across 14 projects.

Elsewhere, in power generation, Mitsubishi Hitachi Power Systems (MHPS) received a full-turnkey order for the EPC of a 5,300 MW natural-gas-fired power plant in Thailand. Meanwhile, India approved the construction of 12 new nuclear power projects.

In a week where a number of the oil majors reported significant rises in net profitability, CB&I received a letter of award from Abu Dhabi National Oil Company (ADNOC). It will build the Crude Flexibility Project (CFP) , valued at more than USD500 mn, in Ruwais, UAE.

Meanwhile, in South Africa, DRA secured a contract from Exxaro Coal Mpumalanga to construct a 500 tonnes per hour coal handling and preparation plant in Mpumalanga.

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The Capital Projects and Contracts (CapProCon) e-newsletter, distributed every Monday, includes dozens more updates and developments. To learn more, click here or email

oil and gas. Capital Projects and Contracts.

Saudi Aramco megaprojects approved

Oil and gas major Saudi Aramco has signed agreements with several oil and gas service contractors for projects in Saudi Arabia. The eight deals are worth a combined USD4.5 bn.

Three agreements were signed with Técnicas Reunidas as part of Aramco’s gas compression programme. The project will improve and sustain gas production from Haradh and Hawiyah fields for the next 20 years and will bring an additional 1 bn standard cu ft per day online.

A deal was signed with Saipem for the Hawiyah Gas Plant (HGP) expansion project. This involves the construction of additional gas processing facilities to process raw sweet gas.


Aramco also signed a deal with China Petroleum Pipelines covering the free flow pipeline contract for Haradh and Hawiyah; an engineering and project management services deal was signed with Jacobs Engineering for the Zuluf field development plan; Abu Dhabi-based National Petroleum Construction Company (NPCC) will execute the pipeline and trunk line project at the Safaniyah field; and the slipover platforms and electrical distribution platform project at the Safaniyah field will be performed by McDermott Middle East.

Saudi Aramco president and ceo, Amin H. Nasser, said: “Investments like these help secure Saudi Aramco’s preeminent position as a reliable supplier of energy domestically and to the world. They also reflect our concerted effort, as stated in Saudi Vision 2030, to diversify our economy, promote local manufacturing, support a sustainable environment, and strengthen our business and investment climate with the domestic private sector through fruitful international partnerships.”

Saudi Aramco megaprojets

CapProCon reported in July that Nasser, speaking at the World Petroleum Congress in Istanbul, said the role of oil as a vital source of energy is expected to continue in the long term, despite the growth of alternatives.

Nasser predicted a doubling in size of the world economy over the next 25 years, plus an additional two billion energy consumers. This will result in a lengthy energy transition that alternative sources such as renewables cannot adequately support.

“Saudi Aramco plans to invest more than USD300 bn over the coming decade to reinforce our preeminent position in oil, maintain our spare oil production capacity and pursue a large exploration and production programme centered on conventional and unconventional gas resources,” he stated at the time.

Africa: power generation ramps up with new projects

The following power generation projects have been published in previous editions of Capital Projects and Contracts (CapProCon).

300 MW Mozambique development

Ncondezi Energy has signed a deal to enter into exclusive negotiations with China Machinery Engineering Corporation (CMEC) and General Electric South Africa (GE) over a 300 MW coal power project in Mozambique.

The parties have agreed the terms of a non-binding offer (NBO) related to the development, construction and operation of the coal-fired power project, as well as an open pit coal mine in Tete province.

540 MW gas-fired Qua Iboe power plant

A joint venture including Nigerian National Petroleum Corporation (NNPC), Dangote Group and Black Rhino Group will build the 540 MW gas-fired Qua Iboe power plant (QIPP) in Akwa Ibom, Nigeria. The deal was signed with Mobil Producing Nigeria and power is scheduled to start flowing in 2021.

Three for Angola

Wärtsilä has signed a framework supply contract to supply power generation equipment for three new power plant projects under development by Dongfang Electric in Angola. The three new baseload plants will be located in Luena, Benguela and Saurimo, and will each have an electrical output of approximately 23 MW. The generator sets are scheduled for delivery in the first quarter of 2018.

Cameroon hydro

Finally, Platinum Power pre-qualified seven consortia for the design and construction of a 365 MW hydropower power generation near Makay, Cameroon.

India: a road to recovery

India. Road construction projects. Road to recovery. engineering, procurement and construction.

In a bid to kick-start India’s economy, Prime Minister Narendra Modi’s government has outlined ambitious plans to build 83,677 km (51,994 miles) of roads across the country over the next five years.

In total, USD108 bn will be allocated to the development of Indian road infrastructure. The plan includes the Bharatmala Pariyojana, which involves the construction of an extensive highway network of 34,800 km (21,623 miles) connecting western and eastern India.

The state-run National Highways Authority of India (NHAI) and the Ministry of Road Transport and Highways will also be responsible for the development of 48,877 km (30,370 miles) of road projects.

After two years of buoyant growth, the Indian economy was pegged back after Modi’s government decided to demonetise two of the country’s high-value currency notes in November 2016 and introduced a new tax regime in July this year. The government is hoping to use public sector spending to turn around the economy. At present, private investment and consumption have shrunk while industrial production has remained low.

The majority of the road construction projects will be executed on an engineering, procurement and construction (EPC) basis.

Emerging sectors

CapProCon reported last week that the FOWIND Consortium has issued a new report studying the potential for India’s offshore wind industry.

The DNV GL-led study, ‘Grid Integration Study for Offshore Wind Farm Development in Gujarat and Tamil Nadu’ is the first step in providing a path for developing a sustainable and commercially viable offshore wind industry in India.

The GWEC says that India has the world’s fourth largest onshore wind market with a total installed capacity of over 32.6 GW. However, India does have an acute need for large-scale, clean energy generation to fuel its rapidly growing economy. Offshore wind power could play a very important role here due to the large wind resources available near centres of high-energy demand. Globally, offshore wind power is becoming increasingly cost-effective with installations close to 14.5 GW at the end of 2016.

Senvion wins cold climate contract

Senvion will supply wpd with nine MM92 wind turbines designed for cold climates, which will be installed at the White Pines wind farm in Prince Edward County, Ontario, Canada. The wind farm will have an output of 18.45 MW.

The project will provide clean, renewable electricity to about 3,000 homes. Senvion and wpd also concluded a service and maintenance agreement (ISP) for 15 years.

Source: Senvion