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19/03/2010 - Laggan and Tormore Gas Fields

UK Government Consent for West of Shetland Gas Development
The UK Government today gave consent for Total and Dong Energy to develop the Laggan and Tormore gas fields, which lie in 600 metres of water and in one of the most hostile environments in the UK.

These will be the first gas fields to be developed in UK waters at this depth and will produce more than 1 trillion cubic feet of gas in the course of the field's life.

The Industry and Government Taskforce to examine the potential for new infrastructure in the area and the Government's recent tax change to support the development of remote, deep water gas fields have been significant factors in bringing this project forward.

Business Secretary Lord Mandelson, visiting Aberdeen today, said:

"The announcement today that this ?2.5 billion investment is going ahead is a major win for the Shetlands, for Scotland and for the UK.

"The new investment will involve a new gas processing terminal which will create up to 500 jobs in the Shetland during construction and the project overall will support about 2,100 UK jobs during its lifetime.

"It will be a major technical challenge developing the deepest gas fields to date on the UK continental shelf, Laggan and Tormore. I congratulate everyone involved for their hard work and for bringing on stream this very ambitious and worthwhile project.

"The recent initiative by the Treasury in extending Field Allowance to such fields has been particularly important. I wish Total every success."

Energy Minister Lord Hunt said:

"This is a huge step forward for the wider development of the West of Shetland area which still contains about a fifth of the UK's oil and gas reserves.

"As we make the transition to a low carbon future, we must ensure we have secure energy supplies by making the best use of our indigenous energy through projects like Laggan and Tormore."

Secretary of State for Scotland Jim Murphy said:

"This news is a major boost for one of Scotland and the UK's most vital industries. Our North Sea workforce is one of the most accomplished and respected in the world and the hostile environment they will face in the deep waters West of Shetland should remind us of the dedicated contribution they make to our economy and energy security."

1. In January the Government announced an incentive to extend the "field allowance" which was announced in Budget 2009, and introduced in Schedule 44 to Finance Act 2009, to remote deep water gas fields, such as are found in the West of Shetland area.

2. The field allowance works by exempting an amount of production income from the supplementary charge. All profits generated by the qualifying field would still be subject to ring fence corporation tax (currently 30%).

3. The allowance could provide up to ?160 million worth of tax relief for each gas field in the West of Shetland region that qualifies for the support.

4. Assuming the project proceeds on schedule, the first production of gas from Laggan and Tormore is expected in 2014.

Source: Dept of Energy and Climate Change
3 Whitehall Place, London, SW1A 2AW
Press enquiries +44 (0)300 068 5226
Public enquiries +44 (0)300 060 4000
Textphone +44 (0)20 7215 6740 (for those with hearing impairment)

12/02/2010 - Saudi Aramco plans

The state owned firm Saudi Aramco has announced its spending plans for the next 5 years. The company intent to spend approximately US$ 120 billion on investments in the oil and petrochemical industries.

US$ 60 billion is to be spent in the oil sector and the remaining on branching in to petrochemicals. Saudi Aramco is the world?s biggest oil exporter and will now be working towards meeting Saudi Arabia?s gas demands and petrochemical needs.

09/02/2010 - Shtokman partners delay production start

HOUSTON, Feb. 8 ? Citing ?changes in the market situation and particularly in the LNG market,? Shtokman Development AG has delayed by 3 years the start-up of production from Shtokman gas-condensate field in the Barents Sea.

The partnership of Gazprom, Total, and Statoil said final investment decisions on pipeline gas will be made in March 2011 and on LNG before the end of 2011.

That schedule will allow for the start of pipeline gas production in 2016 and of LNG in 2017, each 3 years later than initially planned (OGJ, May 18, 2009, p. 23).

The field, discovered in 1988, holds an estimated 135 tcf of recoverable gas. It lies in 1,100 ft of water near the edge of winter sea ice.

The Shtokman partners have decided to treat offshore production facilities, the pipeline to shore, and onshore gas treatment as a stage in the first phase of the development project separate from LNG work.

The first phase targets production of 2.4 bcfd of gas from 20 producing wells drilled from three subsea templates. It includes installation of a floating production unit, construction of two dual-phase pipelines to shore, construction of a liquefaction plant at Teriberka, and a link to the North Stream pipeline serving Europe.

Oil & Gas Journal

27/01/2010 - PDVSA and Eni sign agreement to develop Junin 5 giant heavy oil field in Venezuela

Rafael Ram?rez, Venezuela?s Minister of Energy and Petroleum and President of PDVSA, and Paolo Scaroni, Eni's CEO, have today signed in the presence of Venezuelan President Hugo Ch?vez Fr?as and Vincenzo Scotti, Undersecretary of the Italian Ministry of Foreign Affairs, three strategic agreements: an agreement for the development of Junin 5, a Technology Agreement and an MoU for the construction of a power plant.

Junin 5 Agreement .

Junin 5 is a heavy oil block located in the Orinoco oil belt (Faja). The block is located some 550 kilometers south east of Caracas and covers an area of approximately 425 square kilometers..

The Orinoco belt is the world's largest deposit of heavy oil with oil in place of 1,300 billion barrels which are mostly undeveloped. Its current oil production is approximately 600,000 barrels per day..

Under the terms of the agreement, which will be finalized in the next 60 days and submitted to the relevant approvals, PDVSA will hold 60% and Eni 40% of a joint venture company (Empresa Mixta ) to develop the Junin 5 field which has 35 billion barrels of certified oil in place. The JV company plans an early production phase of 75,000 barrels per day from 2013, and a long term production plateau of 240,000 barrels per day following the construction of a new refinery in Jose..

Eni will pay a bonus of 646 million dollars, of which 300 million dollars will be paid at the creation of the Empresa Mixta and the balance in tranches subject to the achievement of project milestones..

Technology Agreement .

PDVSA and Eni will study the use of advanced hydrogenation technology for complete conversion of heavy oils into high-quality light products. Such technology would use natural gas to enable the full elimination of refinery residues. This will have significant environmental and commercial benefit, allowing Venezuela to achieve major synergies in the development of its vast heavy oil and gas reserves..

The Technology Agreement will also provide PDVSA access to Eni?s gas shale experience in the US Barnett basin as well as its worldwide studies to evaluate the potential of Venezuela?s shale basins, and selecting areas of interest for the exploitation of this fast growing energy source..

Memorandum for the construction of a power plant .

Eni is ready to present a proposal for the construction of a facility with a capacity of 1 GW in the Guiria peninsula. The power plant would provide electricity to the local residents as well as to the LNG infrastructure which will be built in the area..

Through these agreements, PDVSA and Eni will further strengthen and consolidate a strategic alliance which will allow the development of important resources for Venezuela, and also enhance their value through the use of innovative technologies which can be applied in future to Venezuelan oil and gas fields..

In Venezuela, Eni is currently co-operator with a 50% stake in the Cardon IV licence, located offshore in the Gulf of Venezuela, where the giant Perla gas field has been discovered in October 2009. The field has a reserve potential of more than 6 trillion cubic feet of gas (1 billion of barrels of oil equivalent)..

In addition, Eni is present in two offshore licenses, Petrosucre, which operates the Corocoro Field (PDVSA 74%, Eni 26%) with a daily equity production of approximately 10,000 barrels of oil, and Petrolera Guiria (PDVSA 64.25%, Eni 19.50% and Ineparia 16.25%) which operates the Punta Sur discovery.

15/12/2009 - Eni and Gazprom Celebrate 40 Years of Co-operation

Last week Eni and Gazprom celebrated the 40th anniversary of their co-operation, which dates back to the first contract between the former Soviet Union and Italy for the supply of natural gas signed in December 1969.

The relationship between Eni and Gazprom over the last 40 years has been characterized by mutual trust and several successful industrial achievements, including the construction of the Blue Stream gas pipeline which connects Russia to Turkey. This long standing relationship culminated in the broad strategic alliance signed in Moscow in November 2006.

This historic agreement sees Eni and Gazprom jointly committed to the realization of projects across the entire gas value chain and has allowed Eni to enter the Russian upstream sector through the SeverEnergia joint venture, the first Italian-Russian E&P company.

The strength of the relationship between Eni and Gazprom significantly contributes to guaranteeing the security of gas supply to Europe and Italy. In light of this, the two companies are currently studying a new large project, the South Stream, which will bring gas from Russia through the Black Sea.

The South Stream project represents the latest collaborative step, in accordance with the strategy of relationships launched in the 50s by Enrico Mattei, who initially signed the first oil contract with the Soviet Union in 1958.

Through the development and strengthening of the strategic alliance with Gazprom, the first class producer of gas, Eni intends to consolidate its leadership in the European gas market.

10/11/2009 - Takreer contracts awarded

Abu Dhabi, 4th Nov. 2009 (WAM) -- TAKREERTAKREER (Abu Dhabi Oil Refining CompanyAbu Dhabi Oil Refining Company) announced today that two Contracts worth $ 5.2 billion have been awarded to two international companies as part of the overall plan to expand the oil refining capacity in the Ruwais refinery.

The Contracts are for "Engineering, Procurement, Construction and Commissioning" (EPC) works for two packages of the Ruwais Refinery Expansion Project which comprises of seven EPC packages.

Eight companies competed for these two contracts. SK Engineering & Construction Co. from South Korea was awarded package No. 1 for a total value of US$ 2.1 billion for the Crude Distillation Unit & Associated Downstream Units and GS Engineering & Construction Corp. also from South Korea was awarded Package No. 2 for a total value of US$ 3.1 billion for the Residue Fluid Catalytic Cracking Unit & Associated Refining Units.

The Ruwais Refinery Expansion Project which consists of seven different packages is aimed at increasing the crude oil refining capacity by 417,000 barrel per day with latest advanced Technology for down stream processing units to produce higher quality products. The new Refinery has been designed to comply with U.A.E. and International Environmental Standards.

The other packages comprising of Offsites & Utilities, Tankage & Associated Interconnecting Piping, Marine Facilities and Non-Process Buildings will be concluded soon.

TAKREERTAKREER, a subsidiary of Abu Dhabi National Oil Company (ADNOC), stated that the PROJECT is due to meet commercial production by end of 2013.

? Copyright Emirates News Agency (WAM) 2009.

07/07/2009 - Tecnimont on Borouge 3

Tecnimont Awarded Polyolefins Plant Contracts by Borouge
3:47 AM EDT | July 6, 2009 | Natasha Alperowicz

Borouge, a joint venture between Abu Dhabi National Oil Company and Borealis, says it has awarded the three main contracts for front end engineering design (FEED) for its Borouge 3 polyolefins units at Ruwais, Abu Dhabi, to Tecnimont, a unit of Maire Tecnimont. The contract, which also covers utilities and offsite facilities, is valued at $22 million. It represents another milestone in the development of Borouge 3, following the appointment of Bechtel as project management contractor and the selection last week of the Linde Group to build the core unit of the complex, a 1.5-million m.t./year ethylene plant, under a contract valued at $1.075 billion. Tecnimont's FEED contract has a duration of approximately nine months.

Borouge 3 downstream units will include two Borstar polyethylene facilities, each designed for 540,000 m.t./year and two Borstar-process polypropylene plants each with capacity for 450,000 m.t./year. Borealis supplies Borstar technology. Tecnimont will also be responsible for the 350,000 m.t./year low-density polyethylene (LDPE) plant, which will also form part of Borouge 3 and serve the wire and cable industry. LyondellBasell is providing the LDPE technology. Completion of Borouge 3 is scheduled for end 2013. It will expand Borouge's total polyolefins capacity to 4.5 million m.t./year.

Tecnimont was the main contractor on the Borouge 1 polyolefins unit and is currently involved in the construction of the polyolefins units, which will form part of Borouge 2 when that complex comes onstream in the middle of next year.

19/06/2009 - Saudia Aramco, Total Award EPC Contracts for Jubail Export Refinery

Saudi Aramco Total Refining and Petrochemical Company (SATORP) finalized the awarding plan for Engineering, Procurement and Construction (EPC) contracts that constitute the thirteen different process packages of their Jubail joint venture refinery, following a meeting of the SATORP Board of Directors. The awarding of these contracts marks an important step in the execution of this 400,000 barrel per day world-class, full-conversion refinery in Jubail, Saudi Arabia, which plans to be fully operational by the second half of 2013.

When completed, the export refinery will be one of the most advanced refineries in the world and will process Arabian Heavy crude to products fulfilling the most stringent specifications, to meet rising demand for environmentally-friendly fuels. A portion of Jubail refinery's production will be consumed locally to meet spikes in domestic demand. In-Kingdom refineries, such as the Jubail joint venture, have the location advantage to effectively and efficiently supply both international and domestic demand.

The full-conversion refinery will maximize production of diesel and jet fuels, and will also produce 700,000 tons per year (t/y) of paraxylene, 140,000 t/y of benzene and 200,000 t/y of polymer-grade propylene.

"Today we are marking a major milestone in our partnership with Total, which has been strong historically but is now stronger than ever," said Khalid Al-Falih, President and CEO of Saudi Aramco. "The Jubail Export Refinery is a strategic project for Saudi Aramco and the Kingdom of Saudi Arabia, and its timely implementation will ensure that global and regional markets will be well supplied with high quality products in the next decade. Our commitment to fund a project of this scale demonstrates our confidence that energy markets will grow in the years to come, and our confidence that the Kingdom is the ideal location for energy investments by global investors."

"I am delighted that we have decided to launch the development of the Jubail refinery project with Saudi Aramco," said Christophe de Margerie, Chief Executive Officer of Total. "Today, we have passed an important milestone, which shows the quality of the strategic partnership between our two companies and their determination to bring off such a far-reaching project, even in a weaker economic environment. As a result, we will be able to meet, from 2013, the increasing demand for high-quality refined products from Asia and the Middle East."

The synergies between Saudi Aramco and Total lie in the fact that both companies bring knowledge and expertise to the joint venture company. Saudi Aramco's crude oil supply is located near Jubail, a world-class industrial area, while Total is an international oil company with a fully integrated value chain and a global presence.

The project adds value to the local economy through job creation and opportunities for further downstream investments by local businessmen. It is estimated that the refinery will create approximately 1,200 direct employment opportunities in the Kingdom, each of which typically creates five to six indirect job opportunities.

On May 6 and May 8, 2008, respectively, the Executive Committee of Total and the Board of Directors of Saudi Aramco decided to launch the project, and on June 22, 2008, a 'Shareholder Agreement' was signed in Jiddah, Saudi Arabia, by Saudi Aramco and Total S.A.

Following the signing of the agreement, SATORP was formed during the third quarter of 2008, and the project remains on schedule.

Saudi Aramco and Total will ultimately own 37.5 percent of the company each. Subject to required regulatory approvals, Saudi Aramco plans to offer 25 percent of the company to the Saudi public in an Initial Public Offer (IPO) during the last quarter of 2010.

18/06/2009 - Foster Wheeler awarded carbon capture consultancy contract

Foster Wheeler AG?s Milan-based subsidiary has been awarded a contract for engineering consultancy services related to a planned carbon capture & storage facility in the Netherlands.

Foster Wheeler Italiana S.p.A was awarded the contract by the Rotterdam Climate Initiative (RCI), for the provision of consultancy services related to RCI?s planned carbon capture, storage (CCS) and utilisation solution in the Rotterdam region.

While the value of the contract was not disclosed, it is perhaps of more interest that the CCS facility is in progress in the first place.

Established in 2007, RCI is a collaboration between the City of Rotterdam, the Rotterdam Port Authority, Deltalinqs (a representative of the plant operators), and DCMR Environmental Protection Agency of the Rotterdam-Rijnmond region.

RCI aims to achieve a 50% reduction in the Rotterdam region?s carbon dioxide (CO2) emissions by 2025, relative to 1990. RCI aims to achieve this goal by improving energy efficiency, increasing renewable energy production, and via a carbon capture, utilisation and storage initiative, involving the major CO2 emitting companies of the Rotterdam Port area.

Captured CO2 can often be utilised for a variety of applications, either captured and simply stored underground, liquefied for eventual use in the food & beverage industry, or perhaps even used for injection into oil recovery fields.

Foster Wheeler will support RCI in the economic and technical validation of engineering plans for carbon capture facilities to be developed by each individual CO2 emitter located in the Rotterdam Port area.

11/06/2009 - ERG, Shell Committed to Sicily LNG JV, Terminal Ready in 2013

ROME (Dow Jones Newswires), Jun. 10, 2009

ERG SpA and Royal Dutch Shell are still "committed" to building a liquefied natural gas receiving terminal on the Italian island of Sicily with operations starting in 2013, ERG Chief Executive Officer Alessandro Garrone told Dow Jones Newswires Wednesday.

ERG and Shell are still committed to the LNG project that will have an annual capacity of 8 billion cubic meter, ERG's CEO said in an interview on the sidelines of a conference in Rome.

The LNG project, which is equally split between the two companies, in Sicily's Priolo, suffered a setback last month when local authorities said they needed more time to consider granting permission. The original start date was 2010.

Separately, ERG's CEO also said the company has no plans to join forces with Lukoil Holdings (LKOH.RS) as part of the Russian company's efforts to enter the Italian gas market.

Garrone also said ERG, which is a major service stations player in Italy, had no plans for a venture with Lukoil in the sector in Italy. He added the company will assess possible future "cooperation" between the two in the fuel sector.

Lukoil in November 2008 finalized a joint-venture deal with ERG, which included the Russian company taking a 49% stake in ERG's Isab refinery in Priolo. ERG is Italy's biggest independent refiner by capacity.

In recent weeks, Italian media has quoted Lukoil as saying it was interested in entering such sectors.

Copyright (c) 2009 Dow Jones & Company, Inc.

10/06/2009 - E.ON hopeful on Trieste LNG green light

E.ON hopeful on Trieste LNG green light

By Upstream staff

The Italian unit of German utility group E.ON expects to obtain the go-ahead for a planned regasification terminal at Trieste later this year, according to E.ON group board member Lutz Feldmann.

The move comes amid further efforts to open up delivery opportunities for more liquefied natural gas into Europe, Feldmann told Reuters on the sidelines of a company event in Spain.

"We expect approval for the Trieste LNG regasification project in 2009," he said.

The terminal is envisaged to have a capacity to receive and feed into Italy's gas pipeline network up to eight billion cubic metres per year of LNG.

E.ON, traditionally a pipeline gas shipper to German industry and local utilities, is building up an LNG business around Europe to create more delivery options and flexibility, said Feldmann, who is in charge of M&A, legal and corporate development and new markets.

It has been nurturing plans for the terminal at Trieste - named Alpi Adriatico - in the context of its purchase of some former Endesa assets in Italy last year.

Trieste would come on top of LNG deliveries E.ON is already receiving from two terminals in Spain, and to future terminal projects which are still under construction in Britain, the Netherlands and off the coast of Livorno in Italy.

09/06/2009 - QAPCO 3 AWARD

Uhde has been awarded a lump-sum turnkey contract by Qatar Petrochemical Co. (QAPCO), a subsidiary of Industries Qatar and Total Petrochemicals of France, to build a 300,000tpy low-density polyethylene (LDPE) plant within the scope of its LDPE-3 project. The plant will be based on the Lupotech T technology licensed by LyondellBasell. Having already executed the basic engineering for this LDPE project, Uhde's scope of services and supplies will now include the project management, detail engineering and supply of equipment and materials, as well as the construction work. The latter will be executed in close cooperation with Tekfen Construction and Installation Co. of Istanbul, Turkey. The contract is worth some USD 550 million to Uhde. The new plant will produce LDPE pellets for a wide range of applications. It will be integrated into the polyethylene production area inside QAPCO's petrochemical complex in Mesaieed. The plant is planned to be completed in December 2011.

20/05/2009 - Force Majeure Declared on 52,000 B/D from Nigeria Brass Field

Italian oil major ENI Spa (E) confirmed force majeure has been declared on 52,000 barrels a day of crude from the Brass River field in Nigeria Tuesday.

Production from the field is shared, and the measure would apply to 9,000 barrels a day of ENI's equity share.

The news, which provide the company with legal protection for not meeting a contractual obligation to customers, follows reports from traders of damage to specific pipes.

Traders in West African crude estimated production from the Brass facility when running at full capacity last year at around 160,000 barrels a day.

Copyright (c) 2009 Dow Jones & Company, Inc.

29/04/2009 - IEC 61508 Product Approvals - Veering Off Course

article by Angela Summers - SIS Tech, published on controlglobal.com

IEC 61508 Product Approvals - Veering Off Course
ControlGlobal.com
Upon Close Examination It Appears That the Product Approval Process of IEC 61508 (1) Has Veered Seriously Off Course, Possibly Rendering Many Safety Instrumented System (SIS) Applications Less Reliable Than Expected or Required

By Angela Summers, SIS-TECH

Following a careful review of a significant variety of product safety manuals, it appears that many field devices are achieving higher safety integrity level (SIL) claims than can be supported by process industry data. Appendix F.1.3 of CCPS Guidelines for Safe and Reliable Instrumented Protective Systems (2) states that ?a sampling of data for pressure transmitters from various manufacturers report theoretical mean time to failure dangerous (MTTFD) values that are three to ten times better than owner/operator prior use data.? ―a claim that some manufacturers (3) have openly validated.
Unfortunately, changes now being considered by the IEC 61508 committee will not likely improve the situation. It appears that the committee is intent on piling on additional requirements instead of addressing serious structural weaknesses. The only sensible option is for users to take control of this situation by refusing to install any field device in a safety application that has not demonstrated its required integrity and reliability in a similar non-safety operating environment. Users should demand that manufacturers stop making exaggerated performance claims, manipulating the safe failure fraction (SFF), and shifting responsibility for safe operation to the production operator when products behave unreliably. Users must also demand that safety manuals provide complete proof test procedures that achieve compliance with IEC 61511 (5) and OSHA process safety management (PSM, 6) requirements.
1. Exaggerated performance claims
Prior to the release of IEC 61508, many manufacturers provided in-service and accelerated test failure data. Following the approval of IEC 61508, manufacturers increasingly began claiming compliance based on a shelf-state analysis with seemingly perfect operating environment conditions. IEC 61508 allows manufacturers to make SIL claims based on predictive analysis without any burden of later substantiating the claims using actual field data, so technically manufacturers are not doing anything wrong. However, the theoretical dangerous failure rate, safe failure rate and probability of failure on demand (PFD) values declared in analysis reports are much better than can be achieved in actual field applications. The gap between the theoretical analysis and real world performance is egregious and pervasive.
With rare exception, these analysis reports do not provide enough information to fully illuminate the disparity between manufacturer?s claims and user experience―exactly the point being made by Thomas et al.(4) in stating ?quality and consistency in safety manuals is lacking.? The analysis reports do not provide a boundary description, installation and configuration assumptions, or a failure modes and distribution listing. Instead, the reports provide a summary table of the failure class distribution. The issue this raises is that while failure modes and effects are product-related and can be independently evaluated by the manufacturer, the failure classification is application-dependent.
There are many ways that a field device can be installed and configured, making the failure classification difficult for manufacturers, especially for commodity products. A manufacturer cannot properly assess whether a failure should be classified as safe or dangerous without first acquiring knowledge of the intended application.
For example, in a typical demand mode operation where a solenoid-operated valve controls the pneumatic supply to a valve actuator, solenoid coil burn-out is safe in a de-energize-to-trip application and is dangerous in an energize-to-trip application. All failures of the solenoid operated valve are likely dangerous in a continuous-mode application.
Users should be provided with the failure modes and effects results, not just a failure classification summary. Armed with this information, the user can then classify the failures according to their intended application and calculate an application-specific PFD and spurious trip rate.
Most reports do not clearly define the analysis boundary or describe what is included or excluded from the analysis. For a variety of reasons, many in-service failures are excluded from the product analysis reports. Some failures are deemed to occur due to product ?wear out? and excluded from the useful life analysis. Operating environment impacts, such as plugging, corrosion and electrical interference, are considered application issues that are the user?s responsibility to analyze and estimate. The restricted view of the product and its environment is a significant source of disparity between the theoretical analysis and real-world performance, but it is not the only problem.
Excessive diagnostic coverage claims are routinely made on programmable electronic field devices. Claims in excess of 90% are very common even with the restricted boundary and operating environment assumptions. A high diagnostic coverage translates directly into a high SIL Claim Limit and low reported PFD. That makes sense when the credited diagnostic actually yields safer operation and is periodically proven to work―the same rule applied to any safety device. Diagnostics must be verifiable and auditable.
Unfortunately, many manufacturer-supplied diagnostics are not capable of being tested in compliance with IEC 61511 Clauses 11.3―Requirements for system behavior on detection of a fault ―and 16.3.1.1―periodic proof tests shall be conducted using a written procedure to reveal undetected faults that prevent the SIS from operating in accordance with the safety requirements specification. Additionally, analysis reports do not include information on the product?s integrity, if the diagnostics are not configured per the safety manual or fail during operation.
The safety manual should clearly describe the analysis boundary and the assumptions with regard to installation, commissioning, configuration, diagnostics, maintenance and testing that support the SIL claim. Without such information, it is very difficult for users to comply with IEC 61511 Clause 5.2.5.3―Procedures shall be implemented to evaluate the performance of the safety instrumented system against its safety requirements―which requires a comparison of equipment reliability assumptions with field operating performance. Identified failure modes and effects should be included in the maintenance troubleshooting guide in order for in-service failures to be tracked using the same modes, thereby allowing users to periodically compare their actual operating results against manufacturer?s claims.
2. Manipulation of safe failure fraction
The IEC 61508 committee included the safe failure fraction (SFF) and associated hardware fault tolerance requirements as a way of preventing manufacturers from claiming high SILs for non-redundant devices simply based on the PFD calculation. The SFF tables were intended to ensure fault tolerance (through required redundancy) in an environment of optimistic theoretical data. However, because the SFF is calculated from the same potentially ?bad? data, the SFF is susceptible to the same error.
In practice, there is no correlation between SFF and product safety. The inverse is being demonstrated in the product approval process where it has become easier to certify a high total failure device with a high diagnostic coverage claim to SIL 3 than it is to certify one with a low total failure rate but no diagnostics.
While reviewing the various safety manuals, it became obvious that manipulation of the SFF is quite common. Many analysis reports, in direct disregard of the original intent of SFF, have included failure classifications that are not even acknowledged in IEC 61508 or IEC 61511. Contrary to what these reports frequently state, ?no effect,? ?residual,? ?don?t care,? and ?annunciation undetected? are not discussed in IEC 61508 and are not included in any failure definition.
Within some analysis reports, failure classes, such as ?no effect,? ?don?t care? and ?residual? are being loosely defined as a failure that is neither safe nor dangerous. IEC 61508 defines a failure as the termination of the ability of a functional unit to perform a required function. Similar definitions can be found in IEC 61511 and the CCPS book, Guidelines for Safe and Reliable Instrumented Protective Systems. If the device has not failed in a deterministic state―safe or dangerous―it is still functional. It has not terminated its ability to function as specified. However, the analysts have counted these non-failures as safe in the SFF calculation, thereby artificially inflating the calculated SFF value.
IEC 61508 only acknowledges two types of failure, safe and dangerous, so it must be that analysts believe that any degraded, not safe, or not dangerous failure can be assumed to be a safe failure. Ironically, though these non-failures are generally included in the SFF calculation, the analysis reports actually recommend not including them in any spurious trip rate calculation.
Some reports are defining ?annunciation undetected? as the failure of a diagnostic circuit such that it will not annunciate a future fault occurrence. The simple truth is that, if the user is not notified of the diagnostic failure, the user can not be in compliance with IEC 61511 Clause 11.3.1 which addresses the requirement of using diagnostic tests, proof tests or other means to detect dangerous faults. Dangerous diagnostic failures should not be classified as safe, but again, analysts are consistently reporting ?annunciation undetected? failures as safe and astonishingly cite IEC 61508 as a basis for their claim.
When analysts count these ?new? failure classes as safe, the product achieves a higher SFF without any measurable safety benefit. Products with mechanical components are often assumed to have a substantial percentage of ?no effect? failures thus achieving SFF values greater than the 60% or 90% values required to reduce the hardware fault tolerance requirements in accordance with IEC 61508 Tables 5 and 6. A higher SFF frequently leads to SIL 2 or 3 Claim Limits without any redundancy requirement.
For example, a diaphragm-actuated globe valve manufacturer has claimed failure rates of 9.356e-03/yr ?no effect? on a product with only 8.226e-03/yr of real safe and dangerous failures. More non-failures are included than real failures. The SFF calculated without the ?no effect? failure is 59.2%, which is below the SIL 2 claim for a type A component. With the ?no effect? failures included, the SFF is increased to 80.9%, sufficient for an SIL 2 claim.
All this to say, these ?new? failure classes appear to have been created since IEC 61508 was approved solely for the purpose of inflating the SFF; thus these ?new? failure classes are unsubstantiated theoretical constructs―the very phlogiston of safety engineering. Users should reject hardware fault tolerance claims based on such failure classes and should demand that manufacturers substantiate their claims following accepted reliability engineering principles.
3. A tendency to shift responsibility for safe operation to the operator
Many reports are issued with SIL claims assuming detected failures are configured to alarm rather than forcing the failed product to its specified safe state. This assumption allows manufacturers to report a low spurious trip rate and a low dangerous undetected failure rate, even when the product is inherently unreliable. Under IEC 61508 requirements, a product with a high total failure rate can achieve a high SIL Claim Limit as long as its failure is detected and annunciated. The SFF is not penalized by the choice to alarm rather than achieving the safe state. Therefore, the more failures that are detected, the higher the SFF becomes, regardless of the number of times or the total amount of time that the device is in the failed state, essentially dumping responsibility for process protection back on the operator.
Fault detection simply informs the user that the device is no longer capable of operating as required; it does not achieve or maintain process safety. Continuing to operate the process with a degraded or disabled SIS is a serious decision, requiring planned compensating measures that ensure safe operation and provide equivalent risk reduction. Many safety instrumented systems (SIS) are installed because the operator does not have sufficient time, is not continuously present or is not capable of achieving a consistent, reliable protective response in the time required. If the hazard and risk analysis has already taken credit for an operator appropriately acknowledging an alarm, the operator?s contribution to process hazards management has already been considered. An operator acknowledging a diagnostic alarm does not reduce the risk or make the operator stronger, faster or smarter. Only the user, through careful consideration of many application-specific factors, including the process hazard, process safety time, operator attendance, required safe state actions and operator work load, can determine if the operator is capable of providing equivalent risk reduction while the detected failure is corrected.
Manufacturers recommending that failures be alarmed rather than taking the appropriate safety action are potentially accepting significant liability. They simply do not have sufficient information about the intended operation or process risk to make such recommendations. Unfortunately, nearly every analysis report reviewed assumes that an operator is on-hand to step in and substitute for the basic process control system (BPCS) and/or SIS immediately upon receiving a diagnostic alarm, and that they will remain available to monitor the process equipment until the failed device is returned to service. Such assumptions are unrealistic, and manufacturers would be better advised to provide a detailed failure modes and effects analysis, so users armed with an understanding of what is necessary for safe operation can calculate an application-specific PFD and spurious trip rate.
4. Lack of complete proof test procedure
The user must validate and periodically demonstrate that the equipment operates according to the safety requirements specification. This demonstration includes diagnostics, alarms, manual operation and safety functionality as required by IEC 61511 Clauses 11.3, 16.2.2 and 16.3. Unfortunately, very few of proof-test procedures reviewed actually satisfy OSHA PSM requirements for a witnessed test of the equipment?s ability to operate as required.
Most safety manuals provide limited-scope proof-tests with estimated test coverage. Product operation is not fully proven by these partial tests. Since failure modes and distributions are not provided, it is not possible to determine whether the claimed proof test coverage is reasonably conservative or what failures the suggested test covers or does not cover. As already discussed, the proof test procedures do not address testing product diagnostics. Many devices have achieved a high SIL claim limit via large diagnostic coverage factors; yet, means and procedures for testing the diagnostics are not provided or discussed in the majority of safety manuals reviewed.
Safety manuals should provide proof test procedures that demonstrate equipment operation, including diagnostic, alarm and trip functions. Partial testing and diagnostics are tools for allowing more frequent validation of a subset of the failure modes, but the use of partial testing does not eliminate the need for full functional testing. Fundamentally, all protection layers must be auditable, therefore periodic proof-testing is necessary in order to prove that random and systematic errors have not degraded equipment performance. Incomplete testing cannot be accepted solely based on probabilistic techniques. Any failure that is not covered by test is a latent condition that can manifest itself anytime in the device?s life. No user should approve a device for a safety application that cannot be fully proof-tested in order to ensure proper operation according to the safety requirements specification.
Path Forward
Processes operate in a safe manner when installed equipment meets the owner?s operability, reliability, and maintainability requirements. Safety is not sustainable when unreliable equipment is used. Low reliability equipment increases maintenance costs, reduces operation?s trust in the equipment and those that specified it, and increases overall risk due to process upset, shutdown, and start-up. Users must assess how well a device works in the intended application. Prior use information is essential to ensure proper installation, commissioning, testing, and maintenance in process industry applications.
The root of the safety manual problem is an inadequate understanding by manufacturers of what is really needed by users. The manuals reviewed do not contain sufficient information to ensure compliance with IEC 61511 or OSHA PSM requirements. To better support users, manufacturers must perform reasonable and conservative analysis of their products and provide better documentation of assumptions. Users require more than a table of numbers in order to verify that analysis assumptions match their device?s application. Manufacturers are responsible for providing the ?fundamental information for that which they have control, thereby enabling users to efficiently and consistently do their job (4).? Instead, most devices are making exaggerated claims based on rather flimsy and in some cases, suspect evidence.
Unfortunately, it appears that many of these issues will not be addressed by an upcoming release of IEC 61508. Committee members are encouraged to consider seriously changes to IEC 61508 that steer manufacturers in a direction that yields safe and reliable products. Manufacturers should be required to supply a failure modes and effects analysis with failure distributions so users can track their failures against the defined modes. They should also be required to report in-service data, ensuring that product claims can be met by field performance. Manufacturers should not assume that it is safe to alarm a fault rather than forcing the product to its safe state condition. They should report the failure modes that can be detected and allow users to determine whether it is appropriate to alarm or trip based on a hazards and risk analysis of the process equipment. Finally, manufacturers should provide proof-test procedures that fully test all required product functionality in order for users to achieve and remain in compliance with IEC 61511 and OSHA PSM.
References
1. IEC 61508, Functional Safety of Electrical /Electronic/Programmable Electronic Safety Related Systems, Parts 1-7, Geneva, Switzerland (1999-2001).
2. Guidelines for Safe and Reliable Instrumented Protective Systems, American Institute of Chemical Engineers, NY, (2007).
3. http://www.emersonprocess.com/rosemount/solution/faq61508.html
4. Thomas, Harold, David Deibert, David C. Arner, and David Weir, Air Products & Chemicals, Inc., ?Safety Instrumented System Manuals-A Need to Balance Reliability and Safety,? Process Safety Progress, Vol 27, No 1 (March 2008).
5. IEC 61511, Functional Safety: Safety Instrumented Systems for the Process Industry Sector, Geneva, Switzerland (2003).
6. OSHA, ?Process Safety Management of Highly Hazardous Chemicals; Explosives and Blasting Agents, 29 CFR Part 1910.? Federal Register 57, 36, Washington, DC (1992).

21/04/2009 - ENI proceeds with Jangkrik field

Italy-based Eni has made a new hydrocarbon discovery offshore Indonesia as it aims to boost activity in the region. Eni plans to proceed with the appraisal of Jangkrik discovery and to assess the technical and commercial viability of a fast-track development of the new field.

Eni will also participate in the development of the significant gas reserves located in the Rapak & Ganal blocks in the Kutei Basin.

25/03/2009 - Sonatrach/ENI award Menzel project

The joint venture of Algeria's state-run energy company Sonatrach and Italy's Eni have awarded Italy's Saipem a $1.8bn construction contract for the development of the Menzel Ledjmet East (MLE) field in the southeast of the country.
The lump-sum turnkey contract covers engineering, procurement and construction of the natural gas gathering systems, processing plant and related export pipelines from the field, along with future developments of the associated Central Area Field Complex.

Other bidders were JGC Corporation, Petrofac UAE and SNC Lavalin.

Saipem was favourite for the award as it is 43 per cent owned by Eni, which is developing the field with Sonatrach.

The facilities will provide a processing capacity of 350 million cubic feet a day (cf/d) of gas and 35,000 barrels a day (b/d) of liquids.

The facilities are located in the Berkine Basin, about 1,000 kilometres southeast of Algiers.

The contract is for 36 months.

Eni took control of a 75 per cent stake in the MLE field in September 2008 after buying Canada's First Calgary Petroleums, which was developing the field, for $865m.

Eni estimates the acquisition will increase its reserves by about 190 million barrels of oil within its Algerian asset portfolio on a proven plus probable reserves basis.

09/03/2009 - Venezuela sees oil price steady this year

Wire services

World oil prices will likely remain steady this year despite being below their "fair" value, says Venezuela's finance minister, who is an ex-president of Opec.

Venezuela, one of the largest oil exporters to the US, is a price hawk in Opec and has said it could this month propose that the group cut supply to try to lift prices, which have been doggedly around $40 a barrel for weeks.

Only a few Opec members have also called for a new Opec cut even though prices are more than $100 a barrel below their high of last year.

Venezuela has budgeted this year for a price for its basket of crude of $60 a barrel.

But Finance Minister Ali Rodriguez acknowledged world oil prices were unlikely to move much in the short-term.

"I think that for this year the price will keep to current levels, maybe rise a little," he told local television.

But he added that world prices were likely to spike some time in the future if the price remained at current levels, which dissuade companies from investing to find and produce oil, Reuters reported.

09/03/2009 - McDermott lands Saudi gas field deal

Wire services

State oil giant Saudi Aramco said it has awarded a contract for the Karan gas field to US engineering and construction outfit J.Ray McDermott.

The turnkey contract provides for the manufacture and installation of four platforms and the construction of a 110 kilometre long (68 miles) subsea pipeline to carry the gas from the Karan field, Aramco said in a statement.

It did not disclose the value of the contract.

The gas from Karan will be processed at the onshore Khursaniyah gas plant with start-up production scheduled for mid-2011, Aramco said. Karan will produce 1.5 billion cubic feet per day, and will process about 1.8 billion cubic feet per day.

Aramco has awarded onshore contracts for the project to UK-based Petrofac Ltd and South Korea's Hyundai Engineering and Construction Co Ltd, Aramco has said.

The cost of the Karan project was reported to have fallen by at least 20% from previous estimates that pegged it as high as $5 billion, reported Reuters.

05/03/2009 - Croatia, Investors See No Delay for LNG Terminal

European energy firms said on Tuesday they were confident about getting a location permit early next year to build an Adriatic liquefied natural gas (LNG) terminal aimed at supplying central and western Europe.

"We're confident that we can get the location permit at the beginning of 2010 and then start building so that the terminal could become operational on target, in 2014," the head of the Adria LNG consortium, Michael Mertl, told an energy conference in Zagreb.

Analysts and energy officials have said that sticking to the timetable was essential if the terminal was to compete, as a similar project is being prepared in Italy's port of Trieste.

Earlier on Tuesday, Croatia and Hungary signed an agreement to connect their natural gas pipelines by mid-2011 to ensure a steady supply for the region. The new pipeline would allow two-way shipments after the LNG terminal is built.

Adria LNG now comprises Germany's E.ON-Ruhrgas, Austria's OMV, France's Total, German utility RWE's subsidiary Transgas and Geoplin gas company from Slovenia.

Foreign investors have slated a 25-percent stake in the consortium for Croatian partners. Those are expected to include oil group INA, whose biggest single shareholder is Hungary's MOL, state power board HEP and gas pipeline operator Plinacro.

"Croatian firms will join the consortium soon," state secretary at Croatia's economy ministry, Leo Begovic, told the conference.

The location permit depends on an environmental impact study which the government must approve before the building starts.

Mertl said the consortium was preparing the study carefully after an earlier oil pipeline project suffered due to local environmental concerns.

to avoid bad experiences and failure an earlier oil pipeline project suffered due to local environmental concerns.

The government took two years to choose the location for the terminal, but analysts believe the project will now have a high priority, following a gas crisis in January caused by the dispute between Russia and Ukraine.

The terminal, likely to be built on the northern Adriatic island of Krk, will have capacity of up to 15 billion cubic meters (bcm) of gas per year. Croatia consumes about 3.2 bcm annually.

The investment is worth some 800 million euros ($1.01 billion).

04/03/2009 - Saudi Aramco looks to cut costs

Saudi Aramco looks to cut contract costs
Wire reports

State oil giant Saudi Aramco said today it may renegotiate the terms of projects that have yet to be granted as the world's top oil exporter grapples with falling global demand for energy resources.

Turmoil in world credit markets and tumbling crude oil prices have prompted energy companies around the world to reconsider more expensive projects or cut back on spending to preserve liquidity.

Aramco is examining "more flexible, innovative new strategies to reduce financial risk in projects management", it said in a statement issued after a meeting with representatives of Saudi and foreign contractors.

The meeting, it said, aimed "at shedding the light on the company's plans towards recalculating the costs of prospective projects after the decline in prices of material and costs".

Aramco plans 144 projects until 2014, including eight "giant projects", it said without fixing a timetable for the execution of projects.

Finance Minister Ibrahim al-Assaf told Reuters in November the kingdom planned to invest $100 billion in the oil sector until 2014.

ConocoPhillips and Aramco said in November they halted bidding on the construction of the 400,000 barrel per day joint-venture Yanbu refinery in Saudi Arabia, citing uncertainties in the financial and contracting markets.

Global refining margins have been falling on weaker demand due to a slowing economy and increased supply from new export refinery capacity.

26/01/2009 - Adnoc makes billion dollar SAS awards

By Upstream staff

Abu Dhabi National Oil Company (Adnoc) has made two billion dollar awards this weekend for development of the, Sahil, Shah and Ahav fields, in a bid to boost production over the next ten years.

Sharjah-based Petrofac bagged a $2.3 billion contract for the development of the onshore Asab oil field.

Under the 44-month lump-sum contract, Petrofac will provide engineering, procurement and construction services to upgrade the production capacity of the Asab field.

In addition to the production capacity upgrade of Asab, Petrofac?s scope includes upgrading the facility?s capacity to handle more production from Sahil, Shah and other south east fields and to upgrade the associated utilities and water handling facilities.

Meanwhile Adnoc?s onshore unit Adco, awarded a 4.4 billion dirham ($1.20 billion) contract to Spain's Tecnicas Reunidas and a partner, Reuter quoted United Arab Emirates state news agency WAM as reporting on Sunday.

Adco, signed a lump-sum EPC contract with Tecnicas Reunidas and Athens-based Consolidated Contractors International Company to develop the Sahil and Shah fields, WAM said.

The three fields make up what is known as the SAS development plan, to add 60,000 barrels per day to Adco's capacity of about 1.4 million bpd.

The increase is the largest part of a wider plan for the UAE boost crude capacity to 3.5 million bpd, up from 2.8 million bpd.

Adco plans to boost output by about 400,000 bpd to 1.8 million bpd over the next 10 years.

www.upstreamonline.com

26/01/2009 - Adnoc makes billion dollar SAS awards

21/01/2009 - Enel Gets Green Light for Sicily LNG Terminal

by AFX News Limited
January 20, 2009

Italian power group Enel SpA has received final clearance from authorities for its liquefied natural gas terminal (LNG) in Sicily, Chief Executive Fulvio Conti said on Tuesday.

Investments in the project will be around 600 million euros ($778 million) and construction will probably take around 40-50 months, Conti said, speaking on the sidelines of a conference.

Enel owns 90 percent of the project, which should have a capacity of 8 billion cubic metres per year.

Enel will use gas it already has in its portfolio from Nigeria, Conti said, adding that the group was also looking to close contracts with countries like Algeria, Egypt, Qatar and the Arab Emirates.

Asked about talks to buy the 25 percent stake in Endesa held by Spain's Acciona, Conti said the company was assessing various opportunities.

"At the moment there is no concrete solution," Conti said.

Acciona has a put option on its 25 percent stake in Endesa, which can be exercised from March 2010, but reports have said Enel is interested in buying the stake earlier.

Corriere della Sera said a deal with Acciona could be reached within a week.

Conti, who had been in Abu Dhabi on Monday for a business fair, added that Abu Dhabi investment funds had expressed interest in buying stakes in its renewable energy business, Enel Green Power.

Enel intends to either sell or list a minority stake of around 30-40 percent in Enel Green Power, excluding its large hydro plants.

($1=.7705 Euro)

Copyright 2009 AFX News Limited. All Rights Reserved.

14/11/2008 - Sonatrach Taps Saipem for LPG Contract Worth $1.63B

Saipem has been awarded a new onshore contract in Algeria worth approximately US $1.63 billion (1.3 billion euro).

The Algerian oil company Sonatrach has awarded Saipem the lump sum turn-key contract for the LPG (Liquefied Petroleum Gas) processing facility project at the Hassi Messaoud oil and gas complex in central Algeria, 900 kilometers southeast of Algiers.

The contract covers engineering, procurement and construction of three LPG production trains with a total capacity of 8 million cubic meters a day.

The works will be completed by first half of 2012.

07/11/2008 - ConocoPhillips, Saudi Aramco Delay Yanbu Project

The Saudi Arabian Oil Company (Saudi Aramco) and ConocoPhillips have agreed to halt the bidding process associated with the construction of the planned 400,000 barrel-per-day export refinery at the Yanbu Industrial City, in the Kingdom of Saudi Arabia, citing uncertainties in the financial and contracting markets. The current bidding process requested bids to be submitted during December 2008. Instead, it is planned that the project will be re-bid in the second quarter of 2009.
"ConocoPhillips remains committed to working with Saudi Aramco to complete the Yanbu Export Refinery Project," said Jim Mulva, chairman and chief executive officer, ConocoPhillips. "We believe that this short delay will allow the markets to adjust from the current uncertainties and provide a stronger basis for the long-term success of the refinery."

"Although the original schedule for the Yanbu Export Refinery Project will change, Saudi Aramco remains strongly committed to completing this important project with ConocoPhillips," said Abdallah S. Jum'ah, Saudi Aramco president and chief executive officer. "We believe that a delay at this time will allow both the contracting and financial markets to better accommodate the project and will prove to be advantageous for the project company."

The companies will maintain joint engineering, start-up planning and other preparatory activities to ensure project continuity while accommodating the delay.

04/11/2008 - Foster Wheeler Wins Libya Refinery Contract

Foster Wheeler Ltd. announced Thursday that its Milan-based subsidiary Foster Wheeler Italiana S.p.A., part of its Global Engineering and Construction Group, has been awarded a contract by Zwara Oil Refinery Company Limited (ZORCO) for consultancy and project management services for a planned new 200,000 barrels per stream day crude oil refinery at Mellita, near Zwara, in the Great Socialist People's Libyan Arab Jamahiriya. ZORCO is a project company in which Tamoil Africa Holdings Ltd. holds the equity.
Foster Wheeler scope under the contract includes the optimization of the refinery configuration, the selection of the licensors and the front-end engineering design (FEED), including preparation of a cost estimate. Foster Wheeler will also prepare the tender documents for the engineering, procurement, construction (EPC) phase, will assist ZORCO in selecting the EPC contractor(s) and will act as project management consultant during the EPC phase.

Foster Wheeler's contract value for the study and FEED phase will be included in the company's fourth-quarter 2008 bookings. The remainder of Foster Wheeler's project scope will not be booked until the project receives approval by ZORCO to proceed into the EPC phase. The refinery is planned to be completed in 2014.

The planned new facility, with an estimated total investment cost of about $4 billion, includes a state-of-the-art facility aimed at producing premium quality gasoline, jet fuel and diesel with minimal fuel oil production, and related utilities, offsites and marine facilities.

"We are indeed extremely pleased to be awarded this prestigious contract by ZORCO," said Marco Moresco, chief executive officer, Foster Wheeler Italiana. "We have strong roots in Libya and we look forward to leveraging our in-depth refinery expertise to build on the excellent working relationships established in the past."

"This is a flagship project in North Africa requiring deep technical knowledge, experience and flexibility," said Ali Shamekh, chairman, ZORCO Ltd. "We are very pleased to award the contract to Foster Wheeler Italiana and we will join forces for the successful implementation of the Project."

Foster Wheeler Ltd. is a global engineering and construction contractor and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs over 14,000 professionals with specialized expertise dedicated to serving clients through one of its two primary business groups. The company's Global Engineering & Construction (E&C) Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, environmental, pharmaceuticals, biotechnology and healthcare industries. The company's Global Power Group is a world leader in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services. The company is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, N.J.

27/10/2008 - Italian LNG - Update GDF

France's GDF Suez hopes to start an offshore liquefied natural gas (LNG) terminal in Italy in 2012, the executive of its Italian division said on Wednesday.

Italy has scarce natural resources and relies on natural gas imports to cover about 85 percent of its needs. The country is trying to diversify its supplies to reduce its dependence on gas imports from Russia and Algeria.

Italy has only one operating LNG terminal with an under 4 billion cubic meter (bcm) capacity, owned by ENI, the energy giant.

GDF Suez has received the initial approval from local authorities to build the terminal 30 km off the Adriatic coast south of the port of Ancona, said Andrea Galeti, head of business development at its Italian division.

GDF Suez wants to complete a multistage authorisation process by the end of 2009 and make the terminal operational in 2012, Galeti told an energy conference in this Italian city.

"Our group has a strong will to go ahead with this project," Galeti said, adding that he expected the permitting process to be less than smooth.

Authorization of big industrial projects can take years in Italy, often because of local opposition.

It took more than 10 years for ExxonMobile, Qatar Petroleum and Italy's Edison to push through an 8 bcm LNG terminal.

The 600 million euro ($771.3 million) project will see GDF Suez build a ship-based terminal with an initial capacity of 5 bcm that can be doubled if a second ship is added, Galeti said.

GDF Suez was not afraid of competition from Exxon, whose terminal -- the first to be built in Italy since the 1970s -- is expected to be up and running in 2009, he said.

Nor was GFD Suez afraid of another authorized project led by Germany's E.ON and Italian utility Iride to build an offshore LNG terminal of up to 5.2 bcm near Livorno, not far from Pisa, Galeti said.

"There is room for everyone in Italy. We have gas and we are not afraid of competition," he said.

Galeti said GDF Suez may offer a minority stake in the project to a third party and some potential investors have already shown interest. No talks were under way, he added.

Valter Pallano, chief executive of Livorno's project -- OLT Offshore LNG Toscana -- said he expected the 600 million euro terminal to be operating in 2011. Its authorized capacity is 3.75 bcm, but it can be extended to 5.2 bcm, he said.

18/10/2008 - Asia ethylene capacity to rise 60% by 2015

from Oil & Gas Journal:

David N. Nakamura
Refining/Petrochemical Editor

HOUSTON, Oct. 13, 2008 -- The Asia-Pacific region is experiencing a massive expansion during which it will increase its ethylene production capacity to more than 64 million tonnes/year (tpy) from 40 million tpy by 2015, according to a report from FACTS Global Energy, Honolulu.

The report, "Asia's Petrochemical Industry: Implications for Future Naphtha Demand," said a wave of additions will take place during 2009-11, with strong peaks in first-quarter and fourth-quarter 2009.

Most of the new capacity will be added in China. The second-largest global producer of ethylene, China will add 14 million tpy by 2015 to its existing 10 million tpy of production capacity. "Firm and likely additions" will occur mainly in 2009 (4.95 million tpy) and 2011 (3.8 million tpy), according to the report.

China will increase its naphtha consumption from to about 825,000 by 2010 and more than 1.1 million b/d in 2015 from 600,000 b/d in 2007.Because most of the new ethylene production capacity is based on naphtha feedstocks, its consumption also will increase greatly. China will become the largest naphtha consumer in Asia by 2011, according to the report.

Contact David N. Nakamura at davidn@ogjonline.com

11/10/2008 - Deposito EDISON a San Potito e Cotignola

da LA STAMPA" 11 OTTOBRE 2007

PASSO AVANTI PER LA SICUREZZA ENERGETICA
GAS, IL GOVERNO DICE SI A UN DEPOSITO EDISON - E' IL PRIMO DAL 2001

A regime potra' immagazzinare 1 miliardo di metri cubi.

L'Italia fa un passo avanti sulla strada della sicurezza energetica (anche se le trappole delle regolamentazioni sono infinite e non si puo' mai dire): ieri la Edison ha ottenuto dal Ministero dell'Ambiente - d'intesa con quello dei Beni Culturali - il giudizio favorevole di compatibilita' ecologica per un nuovo deposito di gas naturale a San Potito e Cotignola, in provincia di Ravenna.
Il decreto di VIA rappresenta il primo favorevole a un centro di stoccaggio in Italia dall'ormai abbastanza lontano 2001; ora la pratica passa al Ministero dello Sviluppo Economico, che dovrebbe rilasciare la concessione definitiva nel giro di qualche mese.

Con il nuovo centro di stoccaggio il Paese riduce la sua debolezza strategica nel metano, che riguarda sia le forniture sia le infrastrutture di trasporto sia i depositi, anche in vista di eventi climatici eccezionali o il blocco o riduzione dell'import.
Ovviamente i ricorsi al TAR o le iniziative di forze pubbliche locali o nazionali possono ancora affossare tutto.

Se tutto andra' bene il deposito di Cotignola comincera' a essere costruito nel 2008 ed e' progettato per immagazzinare 915 milioni di metri cubi di gas, erogandone fino a 7,2 milioni di metri cubi al giorno. Edison si avvicina cosi' all'obiettivo del Piano Industriale che prevede uno sviluppo del suo sistema di stoccaggio di gas fino a 2,2 miliardi di metri cubi nel 2012 (pari a oltre il 10% della capacita' italiana); ci si arrivera' anche attraverso il potenziamento delle attuali strutture di Collalto (Treviso) e Cellino (Teramo) e con lo sviluppo di un nuovo centro a Mafalda Sinarca.

All'inizio dell'estate l'Autority per l'Energia ha definito "pericolosamente insufficiente" la capacita' di stoccaggio del gas importato, che risentiva del mancato ampliamento della capacita' dei depositi di Stogit (Gruppo Eni) di Settala, in provincia di Milano, per la mancata autorizzazione del Ministero dell'Ambiente.

01/10/2008 - Galsi, Snam Rete Gas commit to pipeline construction

MILAN, ITALY: Galsi and Snam Rete Gas signed an agreement confirming the mutual commitment to, and setting out the conditions for, the construction of the Italian section of a new pipeline importing gas from Algeria to Italy, via Sardinia.

The Galsi project includes the international subsea section, from the Algerian coast to the south of Sardinia, near Cagliari, and the Italian section comprising the overland section crossing Sardinia (to the Olbia area) and a new subsea section to Tuscany (near Piombino), where the pipeline will be connected to the Italian national transport network.

The pipeline will be approximately 559 miles (900 km) in length overall, of which 373 miles (600 km) will be offshore and at a maximum depth of around 9,186 feet (2,800 m) between Algeria and Sardinia. The initial transport capacity will be 282.5 Bcf per year.

The agreement addresses the development, realization and start-up of the Italian section of the project. According to the agreement, Galsi will develop the engineering and obtain the main permits and authorizations required, while Snam Rete Gas will build the pipeline and subsequently manage the gas transport activities.

The agreement reached confirmed the commitment of Galsi and Snam Rete Gas to invest resources in the construction of one of the biggest natural gas procurement projects in Italy's history and one that represents, beyond the new technological challenge, the first step towards a methane supply for Sardinia, a region that currently does not have natural gas available.

This agreement represents another strategic stage in the process of opening up the gas market in Italy and in Europe, since it will allow the importation and sale of natural gas along a new route and allow new operators to embark on the Italian market. The agreement follows a memorandum of understanding signed on Nov. 7, 2007, and it lies in the framework of the subsequent inter-governmental agreement between Italy and Algeria signed on Nov. 14, 2007.

Galsi is a joint venture between Sonatrach (41.6 percent), Edison (20.8 percent), Enel (15.6 percent), Sardinia Region (11.6 percent) and Hera Trading (10.4 percent). Snam Rete Gas, in which Eni owns a majority interest, is the main Italian operator transporting and dispatching natural gas over the national territory.

28/07/2008 - Snamprogetti-Chiyoda Consortium Wins Algeria LNG Project

Algeria's state energy conglomerate Sonatrach signed a contract with a consortium of Italy's Snamprogetti SPA
The 277 billion Algerian dinars ($4.49 billion) contract is for the construction of a liquefied natural gas train in the western Mediterranean port of Arzew with a production capacity of 4.7 million tonnes a year, the statement said.

The project, to be financed 100 percent by Sonatrach and to be fed by gas from Algeria's Gassi Touil and Rhourd Nouss gas fields, is part of Algeria's plans to raise gas exports to 85 billion cubic metres a year in 2012 from 62 billion at present.

The plant is to be built in 48 months under the terms of the contract, which was signed on Saturday, said Sonatrach, Africa's biggest gas exporter and biggest company by revenue.

Sonatrach had provisionally awarded the work to a consortium of Britain's Petrofac
Sonatrach at the time gave the two companies 10 days to provide guarantees they could build the train in 50 months within the price they had offered. But on July 22 Sonatrach announced documents subsequently submitted by Petrofac and IKPT did not meet Sonatrach's requirements and Sonatrach would open discussions on the work with the Snamprogetti-Chiyoda consortium, the runners-up in the tender competition

14/05/2008 - Saudi Aramco and Total Confirm Jubail Refinery Project

The Saudi Arabian Oil Company (Saudi Aramco) and Total have both confirmed their decision to invest in a 400,000 barrel per day world-class, full-conversion refinery in Jubail, Saudi Arabia.
The refinery will process Arabian Heavy crude to high quality refined products that will meet the most stringent global product specifications and is expected to begin operations at the end of 2012. The refinery will benefit from the proximity to the Arabian Heavy crude supply system and from the excellent facilities of the Jubail industrial city such as King Fahad Industrial Port, power and water grids and residential area.

"At Saudi Aramco we are pleased to announce our commitment to strengthen our strategic partnership with Total by moving forward with the Jubail export refinery project. Our vision of this world-class refinery is to further expand the Kingdom's refining and petrochemical infrastructure and create job opportunities here at home. This facility will provide our customers, both domestic and international, with high quality fuels and petrochemicals?" Khalid G. Al-Buainain, Saudi Aramco Senior Vice President of Refining Marketing and International said.
"Launching this project is a major achievement, enabling Total and Saudi Aramco to build a strong strategic partnership. By developing this world-class project in Jubail, Saudi Aramco and Total will contribute to supply growing demand for transportation fuels and petrochemicals, especially in Asia and the Middle-East, but also in Europe where the deficit of diesel is growing", President of Total Refining and Marketing.
In a comprehensive, joint Front-End Engineering and Design (FEED) study launched in May 2006, Saudi Aramco and Total have selected state- of- the- art proven technologies for a full conversion refinery scheme geared to maximizing the production of diesel and jet fuels. In addition, the project will produce 700,000 tonnes per year (t/y) of paraxylene, 140,000 t/y of benzene and 200,000 t/y of polymer grade propylene.
A joint venture company for the refinery will be formed during the third quarter of 2008. Saudi Aramco will initially own 62.5% of the company and Total will own the remaining 37.5%. Subject to required regulatory approvals, the parties are planning to offer 25% of the company to the Saudi public while the two founding shareholders each intend to retain a 37.5% ownership interest. Saudi Aramco and Total will share the marketing of the refinery's production.
Saudi Aramco and Total are planning to release invitations-to-bid for the project's construction in June 2008 with a view to awarding all packages during the first quarter of 2009. Orders for long-lead items will be placed as soon as the third quarter of 2008. The project will be introduced to the lending community in the second part of 2008 with a targeted financial close in early 2009.

source: oilvoice.com

17/04/2008 - Callidus builds steam flare tip for Petro-China

Callidus Technologies LLC is exporting an internal steam flare tip to China which is one of the largest tips ever made. The flare tip is part of a complete flare system sold to Petro-China, and is one of the largest elevated flare systems in the world.
When the internal steam tip, which is 80 inches in ircumference, is positioned on top of the system, the flare will stand 648 feet just 138 feet shy of the height of the CityPlex Towers in Tulsa.

"Winning this order, . . . destined for the
largest petrochemical facility in China, further
confirms Callidus as a leader in combustion/
environmental technologies worldwide"
said William P. Bartlett, CEO and founder of Callidus.
Building the tip was a crew at Callidus fabrication and manufacturing facility in
Beggs. The company has been working on the flare tip which includes the derrick,
piping, stacks and tip for 14 weeks.
The tip is now crated and will be trucked to a port in Houston, then shipped to a port on the northern coast of China.
At that time, the tip will be trucked to Dushanzi, which is in the mountains in northwestern China. The flare tip is but a portion of the entire facility, which has more than
60,000 workers.
According to Brian Duck, partner and vice president of the flare division, the flare system will have the combined energy generated
at maximum continuous flow equivalent to heating approximately 500,000 average-size homes or 75 billion Btu per hour.
Callidus engineers designed the system, which they said will reduce the emissions to
the lowest rate possible.
Petro-China is one of the largest energy companies in the world and is engaged in a
broad range of activities related to petroleum, natural gas, exploration, production, refining, transportation and marketing of oil and gas.
Callidus has offices in China and India, and was given the 2007 Governor s Award
for Excellence in Exporting.

news from: www.tulsaworld.com

17/04/2008 - Case Study: Electric Heaters in Fuel Gas conditioning focusing on Al-Shaheen Field

EXHEAT using its knowledge and expertise in the design and manufacture of electric process heating equipment, has been successful in winning a number of orders for the Maersk Al-Shaheen offshore installation. Custom designed products were incorporated including but not limited to Fuel Gas Conditioning Systems, Dehydration Systems and Tail Gas Treating Units.
EXHEAT specializes in manufacturing Electric Heaters for use in Zone 1 and Zone 2 Hazardous Areas with accompanying certification such as ATEX, IECx, CSA, and NEC amongst others.

EXHEAT Heating Design Solutions at Al-Shaheen are:

- 2,620kW Fuel Gas Super Heater and Control Panels
- 1,070kW Condensate Heater and Control Panels
- 2,400kW Glycol Heater and Control Panels
- 1,232kW of Tail Gas Heater and Control Panels

Overview and EXHEAT Contribution
Fuel Gas Conditioning System:
High Pressure Gas is normally available from an HP Gas Compression System. The HP gas is cooled in the fuel gas cooler and then throttles to a fuel pressure that covers requirements of the gas compressor turbine. The cooled and throttled gas is then routed to the fuel gas KO drum where gas and liquid are separated; the KO drum also provides buffer volume during compressor start up. Gas from the KO drum is filtered in the fuel gas filters and finally super heated before leaving the package. The filtered and super heated gas is then routed to various consumers via a distribution system. EXHEAT supplied custom designed 1,050kW fuel gas super heaters and has recently won business for the supply of 1,570kW fuel gas super heaters which are yet to be installed in the service.

Condensate from the KO drum is super heated, and throttled under level control before leaving the skid. The condensate is in liquid form and the flux density requirement to heat the condensate is very critical. EXHEAT specializes in designing such heaters, and EXHEAT supplied 280kW condensate heaters and has recently won business for 790kW condensate heaters which are yet to be installed in the service.

Fuel Gas Dehydration: Glycol Regeneration
Glycol Dehydration is a liquid dessicant system for the removal of water from natural gas and natural gas liquids (NGL). Lean, water-free glycol (purity >99%) is fed to the top of an absorber where it is combined with the wet natural gas stream. The glycol removes water from the natural gas by physical absorption and is carried out at the bottom of the column. Upon exiting the absorber the glycol stream is often referred to as "rich glycol". The dry natural gas leaves the top of the absorption column and is fed either to a pipeline system or to a gas plant.

After leaving the absorber, the rich glycol is fed to a flash vessel where hydrocarbon vapors are removed and any liquid hydrocarbons are skimmed from the glycol. Due to the composition of the rich glycol, a vapor phase will form when the pressure is lowered leaving a high hydrocarbon content. After leaving the flash vessel, the rich glycol is heated using an electric heater and fed to the stripper (also known as a regenerator). EXHEAT is recognized as one of the world leaders in the design and manufacture of electric process heaters for glycol regeneration and associated thyristor control systems, and has won orders to supply 2,400kW glycol heating solutions for this project.

Tail Gas Treatment:
The raw natural gas is pipelined to a gas processing plant where the initial purification is usually the removal of acid gases (hydrogen sulfide and carbon dioxide). There are many processes but amine treating is the most widely used process. In the last ten years, a new process based on the use of polymeric membranes to dehydrate and separate the carbon dioxide and hydrogen sulfide from the natural gas stream is gaining acceptance.

The acid gases removed by amine treating are then routed into a sulfur recovery unit which converts the hydrogen sulfide in the acid gas into elemental sulfur. The residual gas from is commonly called tail gas and that gas is then processed in a tail gas treating unit (TGTU), when it is super heated to recover and recycle residual sulfur-containing compounds. EXHEAT has developed electric process heaters specially suitable for this service and have won orders to supply 1232kW tail gas heating on this project.

Article presented by Fasi Rahman, Proposals Engineer, Petrochem Department, Exheat UK

28/03/2008 - SAIPEM CONTRATTO OFFSHORE IN NIGERIA DA OLTRE 1,3 MLD DLR

Saipem si e' aggiudicata il contratto per lo sviluppo sottomarino del giacimento offshore di Usan, situato circa 160 chilometri a sud di Port Harcourt, in Nigeria. Il contratto, si legge in una nota della societa' del gruppo Eni, ha un valore complessivo di oltre 1,3 miliardi di dollari ed e' stato assegnato da Elf Petroleum Nigeria (Total) in qualita' di operatore della concessione esplorativa OML 1381 dove e' situato il giacimento di Usan. Riguarda l'ingegneria, l'approvvigionamento, la fabbricazione, l'installazione e le attivita' di assistenza relative alla messa in servizio di condotte sottomarine (per 61 chilometri), ombelicali (per 72 chilometri) e risers2 che collegheranno 42 teste pozzo sottomarine al sistema di produzione galleggiante (FPSO, Floating Production Storage Offloading). Il contratto, inoltre, comprende la realizzazione del sistema di esportazione del greggio costituito da una boa di ancoraggio e due linee di esportazione e di parte del sistema di ancoraggio dell'FPSO. Le attivita' di fabbricazione saranno svolte in Nigeria, presso il cantiere di Rumuolumeni, di proprieta' di Saipem. I lavori in mare saranno svolti dai mezzi navali altamente specializzati Saipem FDS e Saipem 3000, in profondita' d'acqua comprese tra i 730 e gli 850 metri, tra il quarto trimestre 2010 e il quarto trimestre 2011.

19/03/2008 - Foster Wheeler for SARAS, Italy

HAMILTON, BERMUDA, March 19, 2008--Foster Wheeler Ltd. (Nasdaq: FWLT) announced today that Milan-based Foster Wheeler Italiana S.p.A., part of its Global Engineering and Construction Group, has been awarded an engineering, procurement, and construction management contract by Saras S.p.A. for the revamp of the mild hydrocracking unit at the Sarroch refinery in Sardinia, Italy.

This project is part of an important refinery upgrade.

The terms of the contract, which will be included in Foster Wheeler?s first-quarter 2008 bookings, were not disclosed.

This award follows the successful completion by Foster Wheeler of the front-end engineering design for the mild hydrocracker revamp and the procurement of major items. The revamp?s objectives are the upgrade of the mild hydrocracker?s capacity, performance and conversion, while achieving a longer catalyst life duration.

The revamp includes major modification to the reaction section, including installation of a new pretreat reactor, as well as upgrading the gas compression circuit and installing a new high-pressure amine wash section.

?We are very pleased to be awarded this revamp project by Saras,? said Marco Moresco, chief executive officer, Foster Wheeler Italiana S.p.A. ?We have been working with Saras for a number of years at this refinery. We have an alliance-type frame agreement with Saras under which we undertake work at this refinery and, under this agreement, we have developed a strong, successful and cooperative working relationship with our client.?

?The upgrading of our refinery at Sarroch, one of Europe?s largest and most complex refineries, is proceeding at a fast pace,? said Dario Scaffardi, general manager, Saras S.p.A. ?This latest award to Foster Wheeler demonstrates our continued satisfaction with its professionalism"

29/02/2008 - OLT Offshore - Saipem

Italy's OLT Offshore LNG Toscana and oilfield services firm Saipem (SPMI.MI: Quote, Profile, Research, Stock Buzz) have signed a 390 million euro ($592.5 million) deal for the construction of a regasification plant off the coast of Livorno, central Italy.

OLT Offshore said it in a statement on Friday it had also signed a deal with gas transmission network Snam Rete Gas (SRG.MI: Quote, Profile, Research, Stock Buzz) to build a connecting pipeline.

OLT Offshore said the regasification plant, with a capacity of 3.75 billion cubic meters of liquefied natural gas a year, would be functioning from 2011.

OLT Offshore is made up of utility Iride (IRD.MI: Quote, Profile, Research, Stock Buzz), Endesa Europea, Golar LNG and OLT Energy Toscana.

26/02/2008 - Technip awarded contract for refinery in Greece

Technip has been awarded by Motor Oil (Hellas) Corinth Refineries S.A. a contract for the engineering, procurement and construction management (EPCM) of a crude oil distillation unit at the Corinth refinery, Greece.

This unit will have a production capacity of 60,000 barrels per day. It is scheduled to be operational at the beginning of 2010.

The investment for the new unit will be approximately ?180 million.

This project is part of the refinery expansion program. Following the installation of the new unit, the total capacity of the refinery will exceed 170,000 barrels per day.

Technip?s operations and engineering center in Rome (Italy) will execute this contract. It marks a new step in the long-standing and successful collaboration between Technip and Motor Oil, for whom Technip has already carried out several contracts in the Corinth refinery.

14/02/2008 - Peter Brotherhood delivers AKER SMART 1 FPSO turbines

PETER BROTHERHOOD DELIVERS AKER SMART 1 FPSO TURBINES

Specialist engineering company Peter Brotherhood Ltd has delivered three 5 MW steam turbine driven generator sets to Aker Floating Production of Norway.

The turbines will be installed on the top deck of the Aker Smart 1 FPSO (floating production, storage and offloading) vessel which will operate in the Indian Ocean and will be maintained by Aker Borgestad Operations AS.

Aker Smart 1 will be deployed in India?s MA-field which is located at water depths of 1,000 to 1,400 metres, some 60 kilometres offshore from eastern India. The operator of the field is Reliance Industries Ltd. Production start-up will take place in two phases: oil production is scheduled in the first half of 2008 and gas production towards the end of 2008.

The three steam turbine driven generator sets each consist of a turbine, gearbox and generator, all mounted on a common bedplate which incorporates the oil system and a separate water cooled condenser mounted directly below the turbine?s exhaust.

Aker Floating Production ASA chose Peter Brotherhood because of the company?s extensive experience in manufacturing steam turbine driven generator sets for installation on FPSO vessels. These sets have to incorporate features to enable them to operate reliably in a floating environment where they can be affected by, for example, the pitch and roll of a ship.

Peter Brotherhood?s managing director Stephen Fitzpatrick said: ?This was an important order to secure as Aker Floating Production is planning to launch a number of Smart FPSOs over the coming years. We have now installed 36 turbines on board 22 FPSO vessels which have a total power output of over 300 MWe.?

Peter Brotherhood has been designing and manufacturing steam turbine driven generator sets for FPSOs since 1981 and has installed turbines on vessels which are moored off the coast of West Africa, Indonesia, Thailand, Brazil and Australia and in the North Sea.

03/02/2008 - SABIC partners in OSOS petrochemicals project

Subject to this MoU, SABIC will enter as a partner in the OSOS Petrochemicals project at Yanbu industrial city. According to this agreement, SABIC will complete in no more than 2 months, the exploration and review of all works, studies and agreements prior to updating the respective economic feasibility study.

A final agreement will then be signed, should the two parties agree on the study.

The total value of this project is estimated at USD1 billion.

SABIC will hold 35 percent in the joint venture.

Products will include the following: Polybutylene terephthalate (PBT), 60,000 tons; Butanediol (BDO), 50,000 tons; Tetrahydrofuran (THF), 3,500 tons; Malic anhydride acid (MAN), 85,000 tons.

Polybutylene terephthalate is used in various applications including electronic chips, the automotive industry and computer and communications equipment.

The SABIC share of the total global PBT production will be 15 percent.

Butanediol is an intermediate product used in polyurethane and PBT.

Tetrahydrofuran is used in Polytetramethylene Ether Glycol (PTMEG), drug compounds and is also used as a solvent.

The Malic anhydride acid will be used within the plant

01/02/2008 - Eni CEO: 2008 Oil, Gas Production Close to 2M b/d

AFX News Limited Friday, February 01, 2008

Eni SpA CEO Paolo Scaroni said he sees the group's oil and gas production close to 2 mln barrels of oil equivalent per day (boepd) in 2008.

Speaking at a Milan university, Scaroni said Eni continues to grow more than all the other oil companies.

"In 2000, oil production was below 1 mln barrels per day," he said. "In 2008, we will produce close to 2 mln barrels per day."

Eni has already said it sees full-year 2007 production in line with the 1.77 mln boepd seen in 2006, based on an average Brent price of 55 usd per barrel.

Copyright 2008 AFX News Limited. All Rights Reserved.

14/12/2007 - NCP project awarded

Chevron Phillips Chemical Company LLC (Chevron Phillips Chemical) announced today that Daelim Industrial Co., Ltd., of South Korea, and JGC Corporation, of Japan, will provide the engineering, procurement and construction services for Saudi Polymers Company?s NCP Project (Saudi Polymers).

Saudi Polymers will construct and operate an integrated petrochemicals complex at al-Jubail, a Saudi Arabian industrial city located on the Persian Gulf. Once complete, Saudi Polymers will include a world-class olefins cracker, and will produce ethylene, propylene, polyethylene, polypropylene, polystyrene and 1-hexene. Saudi Polymers will begin construction in January 2008, with project completion expected in early 2011. Commercial production is scheduled to begin in September 2011.

JGC will perform the engineering, procurement and construction services for Saudi Polymer?s 1.2 MM tpa cracker, 200 kta metathesis facility and 100 kta 1-hexene facility. The cracker and metathesis technologies will be provided by Lummus, and the 1-hexene technology provided by Chevron Phillips Chemical.

Daelim will provide engineering, procurement and construction services for Saudi Polymer?s 2 x 550 kta polyethylene trains, 400 kta polypropylene train and 2 x 100 kta polystyrene trains.

Saudi Polymers Company is a new limited liability company incorporated in the Kingdom of Saudi Arabia created to execute the NCP Project. Saudi Polymers will be initially owned 50 percent by Arabian Chevron Phillips Petrochemical Company Limited (ACP), a wholly-owned subsidiary of Chevron Phillips Chemical Company LLC and 50 percent by Saudi Industrial Investment Group (SIIG). Ultimately Saudi Polymers Company will be owned 35 percent by ACP and 65 percent by National Petrochemical Company (Petrochem), a new joint stock company incorporated in the Kingdom of Saudi Arabia.

Saudi Polymers Company will be the third petrochemical complex built by Chevron Phillips and SIIG at al-Jubail.

http://www.cpchem.com

14/12/2007 - New contract for Tecnimont

Rome, December 14, 2007 - Maire Tecnimont SpA has announced today the acquisition of an important contract in Russia. The contract has been signed by Tecnimont SpA ? one of the operating companies of Maire Tecnimont - and Tobolsk Polymer LLC ? a company belonging to JSC Sibur Holding. A 510,000 TPA Propane Dehydrogenation (PDH) plant will be realized in the existing industrial complex of Tobolsk (Western Siberia), using the innovative UOP?s Oleflex TM technology. The plant will be among the largest ones worldwide in terms of production capacity.

JSC Sibur Holding is the leading player in petrochemical sector with about 90 production plants in the Russian Federation. The PDH project is part of a larger investment plan in the polyolefin sector (PVC etc) to be realized in other Sibur productive complexes in the country. The contract consists of the development of engineering design (FEED) and the further conversion into EPCM (Engineering, Procurement and Management of Construction).

The contract value will be defined at the end of the conversion and it is not exactly quantifiable at the moment. Anyway Maire Tecnimont ? on the basis of its technical features ? is confident that the contract price will be of significant value.

Thanks to this contract, Maire Tecnimont on the one side strengthens its current significant presence in the Russian Federation with a new prestigious client. On the other side, the company enters the PDH technological sector which offers interesting perspectives of growth. This positive forecasted trend are based on the growing demand for propylene, which is a row material utilized in several petrochemical productive processes. The PDH technology enables to produce propylene starting by propane gas on a competitive price basis in comparison with the traditional process based on liquid hydrocarbons.

(c) MaireTecnimont Group

18/09/2007 - Qafco 5 update

Qatar Fertilizer In Talks On Qafco 5

Qatar Fertilizer Co. has entered into negotiations with an Italian/South Korean consortium for the main contract on its Qafco 5 expansion at Mesaieed. The contract was retendered in the summer because of difficulties over cost with one of the two original contractors.

29/08/2007 - TECHNIP AWARDED CONTRACT BY STATOIL FOR INSTALLATION OF GJOA INFIELD PIPELINES IN NORWAY

Technip has been awarded a contract by Statoil, worth approximately ? 24 million (NOK 190 million) for the fabrication and installation of the infield pipelines on Gj?a. The Gj?a field is located in the blocks 35/9 and 36/7 on the Norwegian Continental Shelf, approximately 45 km west of Sognefjorden, and 60 km northeast of Troll C. The water depth in the area is between 360 to 380 meters.

The project consists of fabrication and installation of 25 km of oil and gas production and gas lift pipelines (14?, 12? and 4.9?).

Technip?s operations and engineering center in Oslo (Norway) will execute the contract. The pipelines will be welded at Technip?s spoolbase located in Orkanger (Norway). The Apache, a pipelay vessel from Technip?s fleet specialized in the reel lay method, will install the pipelines. Offshore installation is scheduled for 2009.

28/08/2007 - TECHNIP AWARDED A FRONT-END ENGINEERING DESIGN CONTRACT FOR A GRASSROOTS REFINERY IN QATAR

Technip has been awarded by Qatar Petroleum a lumpsum front-end engineering design (FEED) contract, worth approximately USD 60 million, for the Al Shaheen refinery to be built in Messaieed, Qatar.

Technip?s operations and engineering centers in Paris (France) and Abu Dhabi (United Arab Emirates) will execute the contract.

The contract covers:
- a grassroots refinery with a nominal capacity of 250,000 barrels per day of crude oil, producing high quality products (mainly gasoline, diesel oil and jet fuel), and
- a crude oil pipeline from the Al Shaheen field to Messaieed (90 km offshore and 110 km onshore), as well as other required import/export facilities.

The refinery will incorporate some of the most technologically advanced conversion units for upgrading bottom of the barrel products.

The facilities are scheduled to be operational by the end of 2011.

Technip has extensive experience in Qatar, learned, among others, from an important FEED performed for the same client for the Ras Laffan condensate refinery and from major ongoing projects (such as Qatargas II, Qatar 3 and 4, RasGas (3) and AKG-2).

With eight grassroots refinery projects performed in the last ten years, Technip has been consistently recognized as one of the global market leaders in the refining field.

21/08/2007 - Foster Wheeler new contract for IES Mantova

Foster Wheeler Ltd's Milan-based subsidiary, Foster Wheeler Italiana S.p.A., part of its Global Engineering and Construction Group, has been awarded a contract by Italiana Energia e Servizi S.p.A. (IES) for the engineering, procurement and construction supervision services for a modernisation project at IES' Mantua refinery in northern Italy. The refinery modernisation aims to produce automotive diesel complying with European Union ultra-low-sulfur specifications and reduce refinery emissions to the environment.

The project has been awarded to Foster Wheeler under the terms of a three-year general framework agreement for engineering, procurement and construction management services signed with IES in 2006.

The contract includes new gasoil hydrodesulfurization, sulfur recovery and amine washing units, a new flare system and utilities and offsites. Foster Wheeler will also upgrade the existing mild hydrocracking and gasoil hydrodesulfurization units, steam and electrical systems.

"We are extremely pleased with this award by IES, which follows our successful execution of the front-end engineering design for this modernisation project," said Marco Moresco, chief executive officer of Foster Wheeler Italiana. "We will spare no efforts in continuing to deliver our best performance to IES."

"We look forward to strengthening our business relationship with Foster Wheeler Italiana," said Adolfo Vannucci, managing director of IES. "Our approach to the management of this project is on a collaborative partnership basis and we are confident that Foster Wheeler will provide us with superior performance in the successful implementation of this project."

10/07/2007 - Nuovi contratti per SAIPEM

San Donato Milanese (MI), 9 luglio 2007 : Saipem si e' aggiudicata due nuovi contratti offshore in Kazakhstan ed Egitto per un importo complessivo di 230 milioni di dollari USA.

Kazakhstan

Il primo contratto e' stato assegnato da Agip KCO a un consorzio formato da Saipem ed Aker Kvaerner nell'ambito della fase sperimentale dello sviluppo del campo Kashagan, nel Mar Caspio. Il contratto riguarda i lavori preliminari per la connessione e la messa in opera delle strutture a mare e quelli preliminari di completamento da svolgersi presso il cantiere di Kuryk.

I lavori riguarderanno anche le attivita' di conversione, approvvigionamento e preparazione di cinque mezzi navali da adibire a moduli di alloggio temporaneo, a uffici e strutture per la generazione di energia elettrica, a deposito delle attrezzature e a magazzino.

Egitto

Il secondo contratto e' stato assegnato da Petrobel al consorzio formato da Saipem e PMS, e riguarda la posa di una condotta da 32 pollici che colleghera' l'impianto di trattamento del gas di El-Gamil ad una piattaforma situata nel giacimento gas Denise Pliocene, circa 60 chilometri al largo dalla costa egiziana a una profondita' d'acqua di circa 85 metri. Saipem fornira' l'ingegneria, il project management, il trasporto e l'installazione della condotta, oltre ai lavori di messa in servizio. Le attivita' a mare saranno svolte dal mezzo navale Crawler nella seconda meta' del 2007.

Saipem (controllata al 43% da Eni) e' leader nella fornitura di servizi di ingegneria, di procurement, di project management e di costruzione per l'industria petrolifera, con distintive capacita' di progettazione ed esecuzione di contratti offshore e onshore, ed un forte orientamento verso attivit? in acque profonde, aree remote ed ad alto contenuto tecnologico, quale la valorizzazione del gas naturale e degli oli pesanti

07/07/2007 - Technip Awarded Services Contract for Fort Hills Oil Sands Project

Technip has been awarded by Fort Hills Energy L.P. a contract for the transformation of heavy oil from the bitumen sands of the Fort Hills Oil Sands project. This services contract includes front-end engineering design, detailed engineering, procurement, construction and project management for the primary upgrader, to be constructed near Edmonton in Alberta, Canada.

The project covers a diluent recovery unit (DRU), a delayed coking unit (DCU), and related facilities. The DRU will recover the solvent from the diluted bitumen pipelined from the Fort Hills mine site to the upgrader. The DCU will upgrade the heavy bitumen into lighter hydrocarbons through coke extraction. The hydrocarbons will be further processed in other sections to become synthetic crude oil, which will then be refined into consumer products such as gasoline and diesel.

Technip's operations and engineering center in Rome, Italy will execute the contract, beginning with the confirmation of the existing design basis memorandum and associated cost estimate.

Fort Hills Energy L.P. consists of Petro-Canada with a 55% working interest, UTS Energy Corporation with a 30% working interest and Teck Cominco Limited with a 15% working interest. Petro-Canada Oil Sands Inc. (PCOSI), a wholly owned subsidiary of Petro-Canada, is the contract operator for the project.

14/06/2007 - Samsung new contracts in Saudi Arabia

Samsung Engineering has recently been awarded of two contracts in Saudi Arabia worth a combined $1.4 billion.

The first one is for a 3,300-m.t./day ammonia plant at Ras al-Zour, based on Uhde technology,with Saudi Arabian Mining Co. (Riyadh).

The complex is due onstream at the end of 2010.

Samsung's other contract, worth $400 million, is from Saudi Kayan and covers construction of a previously announced amines complex at Al Jubail.

07/06/2007 - Saipem Awarded New Onshore Contract in Algeria

Saipem has been awarded a new onshore contract in Algeriafor an oil treatment plant, located in Hassi Messaoud, some 800 kilometressoutheast of Alger.

Sonatrach has awarded a consortium composed of Saipem, as leader, and the company Lead Contracting, an EPC contract encompassing the engineering, procurement and construction of a crude oil treatment and stabilisation plant (UBTS, Unit? de Traitement du Brut et de sa Stabilisation). The plant will be composed of three trains with a capacity of 100,000 oil barrels per-day each, one maintenance unit, four stocking units of 50,000 cubic meterseach and a 45-km pipeline transporting oil, water and gas. Works are expected to last 37 months.

The contract has a total value of approximately euro 950 million, approximately 700 million of which is attributable to Saipem.

The project, aiming to enhance crude quality, as well as to improve safety and production rates, will contribute significantly to the production optimisation programme of Sonatrach's Hassi Messaoud field, given the extent of the field's reserves, their quality and the complexity of the reservoirs.

25/04/2007 - TECHNIP AWARDED CONTRACT FOR THE BYACO ACETIC ACID PLANT IN CHINA

Technip has been awarded an engineering, procurement and construction management (EPCM) services contract by BP-YPC Acetyls Co. (Nanjing) Ltd. (BYACO), the 50/50 joint venture between BP and Sinopec/YPC, for an acetic acid* plant located in Nanjing, Jiangsu province (China).

This plant will have a capacity of 500,000 tons per year of acetic acid and will be based on BP?s world leading Cativa? technology.

Technip?s operations and engineering center in Rome (Italy), with the support of the center in Shanghai (China), will execute the contract in a team integrated with the client.

This contract comes after the front-end engineering design (FEED) contract completed by Technip in 2006 for the same plant.

The plant is expected to come on stream in the first half of 2009.

*Acetic acid: an organic acid used as a chemical reagent or solvent in numerous industrial applications such as paints, glues, inks, polyester plastics and pharmaceutical products.

source: Technip mailing list

16/04/2007 - Foster Wheeler Awarded Contract by ERGMED for Expansion of Gasification Complex in Italy

Foster Wheeler Ltd. (NASDAQ: FWLT) announced today that its Milan-based subsidiary Foster Wheeler Italiana S.p.A., part of its Global Engineering and Construction Group, has been awarded a contract by ERG Raffinerie Mediterranee (ERGMED) for engineering, procurement assistance and construction management services for the expansion of the integrated gasification combined cycle (IGCC) complex at ERGMED's Priolo refinery in Sicily.

The terms of the contract award, which were included in Foster Wheeler's fourth-quarter 2006 bookings, were not disclosed.

Foster Wheeler, in a joint venture, designed and built the original IGCC plant, which transforms refinery residues into synthesis gas, which is burned to produce more than 550 megawatts of electricity. Completed in 2000, this was the first IGCC plant in the world to use asphalt as a feedstock, and has since demonstrated excellent reliability and performance.

As part of the expansion of the IGCC complex, a third gasifier will be added. The new gasifier will use gasification technology licensed by General Electric, which company acquired the Texaco technology used in the two existing gasifiers.

Associated facilities will be added to the existing gasifiers and new pressure swing absorption and membrane packages will be installed in order to produce 20,000 nominal cubic meters per hour of hydrogen. With the addition of the third train, the total gasification capacity will be 146.5 tonnes per hour. The project is expected to reach mechanical completion by the second quarter of 2009.

"We are extremely pleased to be awarded this project," said Marco Moresco, chief executive officer of Foster Wheeler's Italian operating unit. "This award allows us to continue to build on our excellent and long-standing relationship with ERG and to consolidate our position as a leading player in gasification technology and IGCC plant design."

"We have awarded this important project, a key investment for the ERG Group, to Foster Wheeler because its expertise in gasification technology and its management capabilities are renowned worldwide," said Prof. Giuseppe Gatti, president, ERG Power & Gas.

14/04/2007 - Borouge awards two major contracts for Borouge 2 expansion project

Borouge, a leading provider of innovative, value creating plastics solutions, today awarded contracts valued at approximately US$ 3 billion for Borouge 2, the major expansion project at the company?s production facilities in Ruwais, Abu Dhabi in the United Arab Emirates.

The two contracts awarded today comprise:

A contract worth approximately US$ 1.855 billion for the construction of three new Borstar? technology polyolefins units and associated material handling facilities, laboratory facilities and marine works to Tecnimont S.p.A. of Italy, awarded on a lump sum turnkey basis
A contract for an estimated value of US$ 1.234 billion with Tecnicas Reunidas S.A. of Spain, awarded on a convertible lump sum basis to construct the offsite and utility facilities for the expanded plant

The contract with Tecnimont S.p.A. Italy will see the development of two Borstar polypropylene plants with a combined annual capacity of 800,000 tonnes and a new Borstar Enhanced PE plant with an annual capacity of 540,000 tonnes to complement the existing 600,000 tonnes per year unit. Preliminary work on the polyolefins unit will begin immediately and is scheduled to be completed in 2010.

The contract with Tecnicas Reunidas S.A. will see the supply of utilities to all the associated EPC packages for the Borouge 2 project. Preliminary work will begin immediately and is also scheduled to be completed in 2010.

These contract awards represent an important step in the Borouge 2 project which will triple Borouge?s annual production capacity to two million tonnes of polyolefins. This increased capacity will enable Borouge and its customers to supply high performance products in an increasingly broad range of demanding applications.

Borouge has already signed a US$ 1.3 billion contract with Linde Engineering for the construction of a new ethylene cracker. The contract was awarded to Linde on a lump sum turnkey basis, with preliminary work already under way and completion scheduled for 2010.

source: Borouge Web Site

22/03/2007 - New revamping in Italy

Recently, Raffineria di Milazzo (RAM), joint venture between Agip Petroli and Kuwait Oil Company, has awarded Techint Italia the revamping of the gasoil hydrodesulphurization plant.

This agreement confirms and delivers continuity to the existing liaison to RAM, under which Techint Italia has successfully completed the construction of a ??turn-key?? benzene desulphurization plant two years ago. Back then, innovative technology was applied, under license of the CD Tech Company of the ABB Lummus Global Group.

The contract involves the execution of the EPC activities related to the exchange train?s modification with the insertion of eight exchangers, the supply of a new reactor (ca. de 5 m diameter, 16 m high and around 150 mm thick), the connection lines, the related instruments and the connection to the control room and the electric substation.

The public opinion and the segment operators? growing sensitivity about the reduction of polluting agents produced by the combustion of engine powered vehicles, demands greater investments in this kind of plants, which imply remarkable benefits to the environment.

The project?s objective is to reduce the fuel?s sulphur content (below 8 ppm in weight), in order to fulfill legal regulations. Besides, the plant?s production capacity will be increased, growing from 50.000 to 62.000 gasoil low-sulphur barrels per day (bpd).

The works shall be executed during 28 months and their completion is planned for February 2009.

source: Technint web site

NEWS

19/03/2010

Laggan and Tormore Gas Fields

12/02/2010

Saudi Aramco plans

09/02/2010

Shtokman partners delay production start

27/01/2010

PDVSA and Eni sign agreement to develop Junin 5 giant heavy oil field in Venezuela

15/12/2009

Eni and Gazprom Celebrate 40 Years of Co-operation

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News

19/03/2010 - Laggan and Tormore Gas Fields

12/02/2010 - Saudi Aramco plans

09/02/2010 - Shtokman partners delay production start

27/01/2010 - PDVSA and Eni sign agreement to develop Junin 5 giant heavy oil field in Venezuela

15/12/2009 - Eni and Gazprom Celebrate 40 Years of Co-operation

10/11/2009 - Takreer contracts awarded

07/07/2009 - Tecnimont on Borouge 3

19/06/2009 - Saudia Aramco, Total Award EPC Contracts for Jubail Export Refinery

18/06/2009 - Foster Wheeler awarded carbon capture consultancy contract

11/06/2009 - ERG, Shell Committed to Sicily LNG JV, Terminal Ready in 2013

10/06/2009 - E.ON hopeful on Trieste LNG green light

09/06/2009 - QAPCO 3 AWARD

20/05/2009 - Force Majeure Declared on 52,000 B/D from Nigeria Brass Field

29/04/2009 - IEC 61508 Product Approvals - Veering Off Course

21/04/2009 - ENI proceeds with Jangkrik field

25/03/2009 - Sonatrach/ENI award Menzel project

09/03/2009 - Venezuela sees oil price steady this year

09/03/2009 - McDermott lands Saudi gas field deal

05/03/2009 - Croatia, Investors See No Delay for LNG Terminal

04/03/2009 - Saudi Aramco looks to cut costs

26/01/2009 - Adnoc makes billion dollar SAS awards

26/01/2009 - Adnoc makes billion dollar SAS awards

21/01/2009 - Enel Gets Green Light for Sicily LNG Terminal

14/11/2008 - Sonatrach Taps Saipem for LPG Contract Worth $1.63B

07/11/2008 - ConocoPhillips, Saudi Aramco Delay Yanbu Project

04/11/2008 - Foster Wheeler Wins Libya Refinery Contract

27/10/2008 - Italian LNG - Update GDF

18/10/2008 - Asia ethylene capacity to rise 60% by 2015

11/10/2008 - Deposito EDISON a San Potito e Cotignola

01/10/2008 - Galsi, Snam Rete Gas commit to pipeline construction

28/07/2008 - Snamprogetti-Chiyoda Consortium Wins Algeria LNG Project

14/05/2008 - Saudi Aramco and Total Confirm Jubail Refinery Project

17/04/2008 - Callidus builds steam flare tip for Petro-China

17/04/2008 - Case Study: Electric Heaters in Fuel Gas conditioning focusing on Al-Shaheen Field

28/03/2008 - SAIPEM CONTRATTO OFFSHORE IN NIGERIA DA OLTRE 1,3 MLD DLR

19/03/2008 - Foster Wheeler for SARAS, Italy

29/02/2008 - OLT Offshore - Saipem

26/02/2008 - Technip awarded contract for refinery in Greece

14/02/2008 - Peter Brotherhood delivers AKER SMART 1 FPSO turbines

03/02/2008 - SABIC partners in OSOS petrochemicals project

01/02/2008 - Eni CEO: 2008 Oil, Gas Production Close to 2M b/d

14/12/2007 - NCP project awarded

14/12/2007 - New contract for Tecnimont

18/09/2007 - Qafco 5 update

29/08/2007 - TECHNIP AWARDED CONTRACT BY STATOIL FOR INSTALLATION OF GJOA INFIELD PIPELINES IN NORWAY

28/08/2007 - TECHNIP AWARDED A FRONT-END ENGINEERING DESIGN CONTRACT FOR A GRASSROOTS REFINERY IN QATAR

21/08/2007 - Foster Wheeler new contract for IES Mantova

10/07/2007 - Nuovi contratti per SAIPEM

07/07/2007 - Technip Awarded Services Contract for Fort Hills Oil Sands Project

14/06/2007 - Samsung new contracts in Saudi Arabia

07/06/2007 - Saipem Awarded New Onshore Contract in Algeria

25/04/2007 - TECHNIP AWARDED CONTRACT FOR THE BYACO ACETIC ACID PLANT IN CHINA

16/04/2007 - Foster Wheeler Awarded Contract by ERGMED for Expansion of Gasification Complex in Italy

14/04/2007 - Borouge awards two major contracts for Borouge 2 expansion project

22/03/2007 - New revamping in Italy

NEWS