Revealed: 2013's Top 20 EPC Contractors

Revealed: 2013's top 20 EPC contractors

14/10/13 12:00 PM

Revealed: 2013's top 20 EPC contractors Arabian Oil & Gas Staff Staff ,, July 17th, 2013 1 Petrofac US$12 billion project backlog and constant award momentum sees regional dominance continue for irrepressible EPC giant Despite E&P spending reviews across much of the GCC energy business, one firm has continued to outstrip the competition to once again top the Oil & Gas Middle East Top EPC Contractors Annual List. In the period between June 2012 and May 2013 alone, Petrofac won US$7.15 billion worth of regional projects, and in the weeks running up to the Top EPC List’s publication, the firm trounced the pack with a further major wins in Oman and Abu Dhabi. Large contract awards have continued for the EPC powerhouse. In April of this year the company announced Petrofac Emirates, its Joint Venture with Mubadala Petroleum, has been awarded a contract by Zakum Development Company (ZADCO) for the Upper Zakum, That partnership has proved a canny bit of business for the international player, seeing the firm continue to gain market share on the lucrative and highly profitable UAE upstream market. The UZ750 contract is worth approximately US$3.7 billion and has been secured by Petrofac Emirates in consortium with Daewoo Shipbuilding & Marine Engineering Co Ltd (DSME). Petrofac Emirates’ share of the contract is valued at US$2.9 billion. Even more recently, in June, Petrofac added to its global operations and maintenance portfolio with the announcement of a new agreement, worth US$50 million, with Oman Oil Company Exploration and Production LLC (OOCEP). The contract, for an initial period of three years, will see Petrofac deliver operations and maintenance at two new production facilities on behalf of OOCEP, the upstream subsidiary of Oman Oil Company, the national oil company of Oman. These projects are OOCEP’s new Musandam Gas Plant in Bukha, Musandam, which comprises an onshore plant and utilities for receiving well fluids from offshore platforms in the West Bukha field; and the Abu Tubul onshore development in central Oman, which comprises multiple production wells, connected via a gathering and trunk line system to a gas processing plant. Both production facilities are currently under construction. In April this year Petrofac won the EPIC contract for ADMA-OPCO’s Satah Al Razboot (SARB) package 3 project, offshore Abu Dhabi. The US$500 million competitively tendered contract is thought to have commenced already for an April 2016 delivery. The SARB Project is a high priority and new field development off the northwest coast of Abu Dhabi. Drilling will be conducted from two artificial islands (SARB1 and SARB2) with the well fluid sent by subsea pipeline to a facility on Zirku Island for processing, storage and export. Under the terms of the contract Petrofac will deliver 200km of subsea pipelines for well fluid, water injection, injec tion, gas injection, flare and export, along with 3km of onshore pipeline and 55km of subsea power and communication cables. Regional success hasn’t been confined to the UAE and Oman. In December 2012 the company two engineering, procurement and construction (EPC) packages for Saudi Aramco’s Jazan Refinery and Terminal project. When complete, the refinery will produce around 400,000 barrels of oil per day and have associated terminal facilities on the Red Sea near Jazan in the south west of the Kingdom of Saudi Arabia. The combined value of the EPC contracts is around US$1.4 billion. Petrofac’s Saudi Arabia office will lead the project management http://www.arabianoilandgas.com/article-11303 http://www.arabiano ilandgas.com/article-11303-revealed-2013s-revealed-2013s-top-20-epc-contracto top-20-epc-contractors/1/print/ rs/1/print/

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delivery of the work scope which covers tank farms in the north and south areas of the development. The company continues to top our List of best performers thanks to its irrepressible abilty to keep winning major, regionally influential projects. The company’s group backlog at the end of May stood at US$11.9 billion, much of it derived from Middle Eastern work. In a recent interim statement Ayman Asfari, Petrofac’s Group Chief Executive commented: “We have made a good start to the year, with positive progress across our portfolio of active projects, which remains in excellent shape. We have secured a number of important new contract awards in the year to date and we continue to see many new and attractive opportunities across the Group. “Our strategy for long-term sustainable growth is based on thr ee key drivers: expanding our existing business into new geographies; developing our leading EPC offering offshore; and delivering on our plans for Integrated Energy Services.” Article continues on next page ... 2 Samsung Engineering Samsung Engineering continues its top flight status in 2013 thanks to a dynamic performance in Iraq, and its continuing major project haul in the Gulf. Samsung Engineering began the year well with a massive contract award from Gazprom Neft for the $879 million contract covering EPC for the Gas Separation Plant (GSP) on a lump sum turnkey basis in Iraq. Samsung Engineering will be responsible for building the 200 MM SCFD central processing facility within 35 months. The plant is to be located at the Badra oil field in Wasit province in south eastern Iraq. This facility will produce 170,000 barrels of oil per day by 2017 as part of the oil development plan by the Iraqi Ministry of Oil. “With our expertise in GSP projects, we will make sur e to maximize client satisfaction and contribute to the development of I raqi society,” said Steve Fludder, Senior Executive Vice President of Marketing at Samsung Engineering, speaking at the time. The largest leading EPC player in Iraq, Samsung Engineering is also executing the West Qurna Phase 2 project awarded by Lukoil in 2012. On the back of strong upstream orders, Samsung Engineering was able to confirm continuous growth through 2012, posting annual profit climb of 23%. 2012 highlights include the formation of AMEC Samsung Oil and Gas LLC (ASOG), a joint venture that will bring together AMEC’s world-renowned design engineering capability and extensive experience in offshore projects with Samsung’s leading project management expertise and shipbuilding technology. 2012 was marked by record new orders of $11.3 billion. SE announced it had been awarded the Yanbu refinery expansion project from Luberef (Saudi Aramco Lubricating Oil Refining Company) in the fourth quarter of 2012. SE’s element of the project is valued at $871 million. Article continues on next page ... 3 NPCC UAE champion contractor sees fortune favouring local capability and strong ADNOC ties Abu Dhabi-based National Petroleum Construction Co mpany has continued its surge up the league tables, raking in i ts best performance at number 3 this year. The company, which has built its impressive track record and pedigree largely working on the ADNOC Group of Companies major engineering challenges, has had another excellent year as Abu Dhabi keeps its foot on the gas in the contracts awarded department. In July 2012 NPCC and French group Technip were jointly awarded an $817 million contract to build offshore facilities at an oil field in Abu Dhabi for ZADCO. The consortium was awarded a lump sum engineering, procurement, fabrication, installation,

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commissioning and start-up contract for the Upper Zakum 750K Project in Abu Dhabi, United Arab Emirates. The field is located in the Gulf, 84km offshore Abu Dhabi. It is divided into four production artificial islands (Central, North, South, and West), with processing facilities at the Central Complex. The scope of work covers 240 kilometers of subsea pipelines and 128 kilometres of subsea composite and fiber-optic cables. Almost 30,000 tonnes of offshore structures (jackets, riser platforms, flare tow ers and bridges), including approximately 3000 tons of islands modules and bridges are included in the project sum. In June 2013 it was announced that Abu Dhabi Marine Operating Company (ADMA-OPCO) awarded NPCC a US$766 million EPC contract for the Umm Lulu field development project. Under the terms of the deal, NPCC will undertake the construction and installation of six new well-head towers along with a riser platform topside, 90km of infield pipelines, 125km of oil lines, fibre optic cables and brownfield modifications on two existing wellhead towers. The latest signing follows the recent awarding of two other EPC contracts collectively valued at $2.4 billion: the SARB Full Field Development Project with South Korea’s Hyundai Engineering & Construction Company (HDEC) and Petrofac International, Abu Dhabi. The full field development of Umm Al-Lulu and SARB oil and gas fields should contribute to an incremental production increase of 200,000 bpd. Last year NPCC announced $500m worth of capital investment to upgrade its offshore marine fleet, increasing yard capacity and generally expanding its engineering capabilities. “This covers upgrading our offsho re marine fleet, increasing yards capacity, augmenting e quipment facilities, and in addition, expanding our engineering capabilities,” said CEO Aqeel Madhi. Article continues on next page ... 4 Fluor Building on its successful and important role in Abu Dhabi’s massive Shah sour gas development project, Fluor Corporation announced in March this year it has been awarded a front-end engineering and design (FEED) contract by Qatar Petroleum (QP) and Shell Global Solutions for a proposed $6.4 billion grassroots petrochemical project located in Ras Laffan Industrial City, Qatar. Throughout 2012 Fluor’s Offshore Solutions unit was working on a FEED contract ADMA-OPCO for new offshore facilities located at the Nasr Field, approximately 30km northeast of Umm Shaif Super Complex in Abu Dhabi. Fluor’s results for its fiscal year ended December 31, 2012 saw profits hit $456 million. $12.6 billion of new orders were attributed to Oil & Gas and $9.5 billion in Industrial & Infrastructure. Article continues on next page ... 5 Hyundai Heavy Best known for its marine and shipbuilding work, Hyundai Heavy has sailed up our list this year thanks to a massive delivery for ADNOC’s offshore arm, ADMA OPCO, and continuing work on Qatar’s huge Barzan Gas Project. Last summer the first of three shipments of the Integrated Gas Development (IGD) Project modules arrived in Abu Dhabi’s Das Island. Three further shipments left the South Korean port of Ulsan arriving late summer. HHI’s element of the IGD project is thought to be in the region of $1 billion. Hynudai Heavy Industries is also working through its $900 million slice of Qatar’s massive Barzan Gas project. This is scheduled for completion in 2014. HHI has also managed to keep its hand in major KSA projects over the last year too. In October 2012 HHI won a $3.2 billion order to build Jeddah South Thermal Power Plant from Saudi Electricity Company (SEC) in Saudi Arabia. Scheduled for completion


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in 2017, the power plant will produce 5% of Saudi Arabia’s entire power generation capacity. The South Korea-based company has completed or is building power and desalination projects worth $10 billion in the Middle East. Article continues on next page ... 6 Saipem Offshore specialists Saipem have continued to win big new orders despite Algerian operational issues hitting earnings to the tune of half a billion dollars. Outside of the deteriorating relationship with Sonatrach in Algeria, Saipem was able to announce in May that it has already exceeded 50% of its new contract acquisition target for 2013 in the Engineering & Construction (E&C) Business Unit. The total value of new contracts acquired from January 2013 to date in the E&C Business Unit is approximately $7.93 billion, and supports the likelihood of achieving a full-year order of approximately $14.3 billion. CEO Umberto Vergine said: “The E&C contracts acquired since January imply margins that so far represent an improvement of at least 40% compared with those acquired in 2012”. In March Saipem won new E&C Offshore contracts in North and West Africa for a total value $1.1 billion, including a contract with Burullus Gas Company in Egypt. These new orders build on Saudi Arabia’s giant Al Wasit project, due for completion next year, which brings Saipem’s work in KSA currently under execution to around $2.2 billion. Article continues on next page ... 7 KBR Despite a lacklustre set of global corporate results in 2012, KBR managed an impressive regional performance, indeed, generating much if its global good news from the Middle East. 2013 began well for the American firm in the region too. Highlights include its first major seven-year contract to provide refinery maintenance services for the Saudi Aramco Total Refining and Petrochemical Company (SATORP) at a new 400,000 bpd refinery in Jubail. The contract value is approximately $165 million. “This is a milestone project for KBR as it represents a major step forward f or our Services Business Group, taking on its first longterm maintenance contract in Saudi Arabia and significantly expanding its international footprint,” said Ivor Harrington, Group President, KBR Services. In December 2012 KBR was awarded the Mansuriya Full Field Development contract to perform front end engineering and design studies and Quality Control Support Services (QCSS) for the Turkish Petroleum Overseas Company in Diyala Province, Republic of Iraq. In November KBR was awarded a contract to execute the FEED for an Integrated Gasification Combined Cycle (IGCC) project near Jazan Economic City, Saudi Arabia. The IGCC complex will provide electricity for a local refinery and export 2.4 GW of electricity to Jazan City. Article continues on next page ... 8 Hyundai E&C Another top ten entry for Sou th Korea comes in the form of Hyundai E&C. The bu ilding arm of the former Hyun dai Group conglomerate (separate from Hyundai Heavy Industries) has had a storming year in the region since the last edition of the Oil & Gas Middle East Top EPC Contractors Special Report, capped with a massive order in April 2013 for the UAE’s ADMA-OPCO. The $1.9 billion mega-contract was awarded for the construction of “SARB-4,” an offshore crude oil and gas processing project. The SARB (Satah Al- Razboot) offshore crude oil and gas processing project involves the construction of facilities to transfer oil drilled on 86 wells of the Satah Al-Razboot offshore oil field, 120 kilometers northwest of Abu Dhabi. Facilities related to collection and transport will be constructed on two artificial islands. In addition, Hyundai E&C will build a


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facility in Zirku Island to separate gas from crude oil collected in the SARB and Umm Al Lulu oil fields. The oil and gas processing facility to be constructed in Zirku Island has a design capacity of 200,000 barrels of oil per day, and 35 million cubic feet of gas. The South Korean EPC specialist is nearing completion of a $1.4 billion pipeline project in Kuwait for Kuwait Oil Company, which is expected to be handed over this summer. Article continues on next page ... 9 McDermott International Building on a hugely respected pedigree of project work spanning some of the Middle East’s most prestigious and productive offshore environments, McDermott International has continued to grow its regional project base over the past twelve months. The company signed off 2012 with a massive pair of orders for an undisclosed customer in the Arabian Gulf with a combined value of approximately US$900 million at the very end of the year. The company has also been busy carrying out a major EPC project for Al-Khafji Joint Operations, in the Hout field in the Neutral zone between Kuwait and Saudi Arabia throughout much of 2012. The KJO project comprised more than 600 tonnes of structures including a tripod jacket, deck and flare tower and 42 kilometers of 24-inch subsea pipeline. McDermott also carried out modifications to a number of existing platforms in the Hout field, through its brownfield division in Jebel Ali, Dubai. Project completion is expected in 3Q 2015. McDermott’s revenues were $807.5 million for the first quarter 2013, an increase of 11 percent compared to $727.7 million in the corresponding period of 2012. The year-over-year increase was primarily due to an approximately $48.6 million increase in revenues in the Atlantic segment, coupled with increased revenues in the Middle East. Article continues on next page ... 10 JGC CORP Japan’s JGC Corporation has been busy throughout the region on a multitude of major projects for the Middle East’s leading National Oil Companies and the region remains one of the companies most important and dynamic markets. Its most recent major award was signed off in November 2012, when the firm announced it had been awarded the LSTK contract from Saudi Aramco for the engineering, procurement and construction (EPC) services associated for the Jazan Refinery and Terminal. Jazan Refinery and Terminal, to be built in the province of Jazan, located in the southeast area of Saudi Arabia, is expected to have 400,000 barrels per day capacity and is scheduled for completion in 2016. JGC was among seven international firms selected by Iraq to bid for the development of its Nassiriya oilfield and building a refinery earlier this year. JGC’s other flagship project in the region is Qatar’s Barzan Gas Project. JGC is responsible for the onshore packages being built north east of Ras Laffan. Barzan Train 1 will come on stream in 2014, with Train 2 following in 2015. Article continues on next page ... 11 KENTZ Kentz has flown up the rankings this year on account of its impressive forward momentum in the regional project arena. Alongside its partners Ali Khudair Al-Harbi and Ahmed Omar Radi Engineering Consultancy (RGC) Kentz was awarde d a major technical services contract by the Royal Commission for Jubail and Yanbu in the Kingdom of Saudi Arabia in April this year. This contract, which lasts for five years, includes engineering works for electricity facilities for King Fahd Industrial Port and Jubail Port. In December 2012 Kentz confirmed the award of three individual, reimbursable, service contracts in Iraq with a total value to


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Kentz of US$55 million. Across the three projects, Kentz will provide services over the next thr ee to four years that will oversee the developm ent of inplant process facilities to deliver a combined increase in production capacity of approximately 250,000 bpd of oil and 300 mscf of gas. Kentz will be working on both new and existing upstream facilities, based in the Basra and Baghdad areas.Its full year financial report for 2012 showed revenue up 6% to US$1.56 billion and a $2.57 billion backlog. Article continues on next page ... 12 Bechtel A steady performer, Bechtel maintains its top 12 position thanks to its mega-projects being undertaken i n Saudi Arabia. Bechtel has managed the Jubail project, located in the Eastern Province of the Kingdom of Saudi Arabia, since it began in the mid-1970s. In 2004, the Royal Commission for Jubail and Yanbu asked the company to manage Jubail II, a $3.8 billion expansion of the city’s industrial and residential areas. Jubail Industrial City is the largest civil engineering project in the world today. It also is one of Bechtel’s most remarkable achievements—a city built from the ground up, requiring vast resources and logistical planning on an unprecedented scale. With a population of more than 100,000, Jubail today accounts for more than 7 percent of the kingdom’s gross domestic product. The city has evolved into a major player in the global petrochemicals market. In the UAE, Bechtel is best known for its project work on the Khalifa Port and Khalifa Industrial Zone Abu Dhabi (Kizad) in Abu Dhabi, a complex on its way to becoming one of the world’s largest combined port and industrial zone developments. Article continues on next page ... 13 Maire Tecnimont With a strong revenue stream in 2012 coming from technical services, Maire Tecnimont proved it hadn’t taken its eye off the EPC ball with a major project win in Saudi Arabia. Announced last summer, the Group has been awarded through its subsidiaries, Tecnimont and Tecnimo nt Arabia Limited, EPC contracts on a Lump Sum Turn Key basis for the implementation of a manufacturing plant in Jubail for Sadara Chemical Company, a joint venture between Saudi Aramco and The Dow Chemical Company. Completion is expected by the end of 2014. Oil, gas and petrochemical project work accounted for almost 60% of the company’s backlog at the end of March this year. The backlog of OGP work at 31 March 2013 is equal to $4.02 billion. Technimont is also a lead contractor on the $4.7 billion Habshan 5 project in Abu Dhabi, part of the giant integrated gas development (IGD) project being carried out by GASCO. The project broke ground in 2009 and is scheduled for completion in October this year. Article continues on next page ... 14 Foster Wheeler Foster Wheeer boosted its project portfolio in Kuwait, Egypt and Qatar in 2012-2013, and Middle Eastern work now accounts for over 30% of its international backlog. In September 2012 Amec and Foster Wheeler were reprted to have been selected for both Kuwait’s $14.2bn Al-Zour refinery and its $16.3bn clean fuel project on a consultancy basis. Last year the firm were also able to confirm Shell had awarded a basic engineering package for a world-scale MEG facility at Ras Laffan, Qatar. The MEG facility will be part of a new petrochemicals complex in Ras Laffan being developed by a QP and Shell JV.


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Outside of the GCC, a subsidiary of Swiss-headquartered EPC giant Foster Wheeler also signed a three-year framework agreement with Apache’s joint venture company in Egypt. for the development and implementation of upstream projects in Egypt. Foster Wheeler reported three record-setting performance milestones as in 2012: $2.4 bn in scope new orders; $2.2 bn in scope backlog; and 17 mn man-hours in backlog. Article continues on next page ... 15 Chiyoda Corporation By far the largest announcement of the past year for Japan’s Chiyoda Corporation has been the awards to its joint venture with Taiwanese CTCI Corporation for the Engineering, Procurement, Supply, Construction and Commissioning (EPSCC) of the $1.5bn Laffan Refinery 2 (LR 2) Project in Qatar. LR2 will have a daily production capacity of 60,000 barrels of naphtha, 53,000 barrels of jet fuel, 24,000 barrels of gasoil and 9,000 barrels of liquefied petroleum gas (LPG). Laffan Refinery 2 is expected to be fully operational by the third quarter of 2016. In March the company made clear its intention to boost its Middle Eastern workload with the creation of a joint venture company in conjunction with Consolidated Contractors Company. The name of the company is Chiyoda CCC Engineering Limited (CCEL) having its regional headquarters in Abu Dhabi, United Arab Emirates. The JV will operate an engineering company targeting certain hydrocarbon processing industries specifically within the Middle East. In late 2012 its JV operation with CB&I was awarded the FEED contract for an onshore natural gas liquefaction facility project in Mozambique. Article continues on next page ... 16 Worley Parsons WorleyParsons is another of our top 25 which has benefitted hugely from the work on offer rebuilding and rehabilitating Iraq’s upstream industry. In October 2012 the company was awarded a $90m contract extension by BP Iraq NV, and its partners PetroChina and the State Oil Marketing Organisation (SOMO) of the Republic of Iraq, to continue providing Engineering, Procurement and Management services to boost production from the super-giant Rumaila oilfield in Southern Iraq. In November 2012 WorleyParsons was awarded a three year contract by LukOil to provide PM services for West Qurna-2 oil field development project in Iraq. WorleyParsons will provide personnel to support West Qurna-2 EPC activities. Earlier this year WorleyParsons extended its current Maintain Potential Programme contract with Aramco for a further 2 years. WorleyParsons Arabia has held this contract for 11 years. The company is also engaged with Maersk Oil Qatar on a four year General Design Contract to conduct engineering design modifications for the Al Shaheen offshore oil production facilities operated by Maersk Oil in Qatar. Article continues on next page ... 17 Jacobs Engineering Jacobs Engineering has continued to build its Middle Eastern upstream and downstream business awards over the past year. In February this year the company was awarded a contract from Saudi Aramco Lubricating Oil Refining Co. (Luberef) to provide project management consulting (PMC) services for an expansion project at its lube oil refinery in Yanbu, Saudi Arabia. Officials did not disclose the contract value, however noted that the overall expansion project cost is estimated at approximately $1 billion. The Luberef award built on a successful 2012, in which Jacobs Engineering won a design contract from Saudi Kayan


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Petrochemical Company, an affiliate of SABIC, to develop a process design package (PDP) and FEED package for the build of an UHMWPE plant in the Industrial City of Jubail. Jacobs is currently two years into a major 5-year contract with Saudi Aramco for general engineering and project management services (GES+). The GES+ contract is five years and covers all EPC management services for Aramco’s Capital Program. Article continues on next page ... 18 CH2M HILL CH2M HILL, and for the purposes of this list, its wholly owned subsidiaries Veco Engineering and Halcrow, provides a spectrum of services to regional upstream clients. Its joint venture with the Olayan Group of Saudi Arabia, called CH2M Olayan serves the growing infrastructure needs of the Kingdom, a savvy bit of business when one considers the projected government spend of $400 billion in five years to meet the needs of its rising population. VECO has won a raft of complex projects in Abu Dhabi , from several packages for GASCO at Bu Hasa & Ruwais to field developments at ADCO’s onshore fields. At Bab, VECO had the FEED for developing the Habshan 1 reservoir. At Bida Al Qemzan, VECO is working on $300 million of engineering and procurement for completion in 2014. At SAS, VECO scooped the PMC contracts for the $3.2 bn package A, supervising Pe trofac which won the Asab EPC, and the $1.2 billion package B, where it is supervising Tecnicas Reunidas and CCC at the Sahil and Shah fields. The firm has also overseen the study for offshore produced water. Article continues on next page ... 19 Leighton Offshore Leighton Offshore rises up our rankings this year on account of its continuing success in Iraq, notably the EPC work on the Iraq Crude Oil Export Expansion Project, one of the most important strategic projects in the Iraqi Ministry of Oil’s Master Plan, which aims to increase export capacity by 4.5 million bpd within 5 years. Phase one of the $733 million project was completed in 2012. Leighton Offshore has since been awarded a contract for the replacement of floating hoses on the SPM system operated by Qatar Gas. Ras Laffan Terminal Operations, operates and maintains two SPM CALM buoys approximately 54 Km offshore from Ras Laffan Industrial City, Qatar. In 2012 Leighton operated and maintained the Iraq Offshore Crude Oil Export system, successfully managing the export of over 140 million barrels of oil. Leighton Offshore has recently completed the Single Point Mooring System for the Tanzanian Ports Authority. The project comprised the Design, Engineering, Procurement, Fabrication, Installation and Pre-Commissioning of a replacement offshore SPM and pipeline system for the import of crude oil. Article continues on next page ... 20 SNC-LAVALIN SNC-Lavalin has built on 20 years of success in the Gulf with a major General Engineering Services Contract by Khafji Joint Operations (KJO), a joint venture between the Aramco Gulf Operations Company (AGOC) and the Kuwait Gulf Oil Company (KGOC) towards the end of 2012. The five-year contract will see SNC-Lavalin carry out a range of front-end studies, perform detailed engineering, and provide procurement and construction management support for onshore and offshore hydrocarbon and industrial projects. “We’re very pleased to secure this contract, which further e xtends our hydrocarbon footprint with Ar amco and provides a first opportunity to work with the Kuwait Gulf Oil Company,” said Ric Sorbo, Senior Vice-President and General Manager, SNC-Lavalin http://www.arabianoilandgas.com/article-11303-revealed-2013s-top-20-epc-contractors/1/print/

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Group Inc. The SNC-Lavalin Fayez Engineering (SLFE) joint venture was formed partly in response to Saudi Aramco’s General Engineering Services Plus (GES+) initiative. Under the GES+ initiative, SLFE will be invited to bid on front-end engineering and select detailed engineering services contracts to support Aramco’s capital program. Article continues on next page ... 21 Larsen & Toubro India’s L&T has had a significant boost in 2013 thanks to a major contract signed with Saudi Aramco. In June, a Joint Venture Company of L&T - Larsen Toubro Arabia, secured a large EPC contract for setting up gas processing facilities, for the Midyan Gas Fields, with a capacity to treat 75 MMSCFD of gas and 4500 BPD of condensate, and the laying of over 90 km of gas and condensate product pipelines. The project is scheduled to be completed in 37 months. The concept for the Midyan Gas Processing Facilities Project is to collect gas and process it in a modular gas plant, and export treated gas to a proposed power plant in a location approximately 90 km from Midyan. L&T crossed another landmark on April 17, 2013, when the Jack-up Rig, ‘Sagar Uday’, was flagged off from L&T’s Sohar Modular Fabrication Facility in Oman. The 120-metre tall rig had undergone a major refurbishment that involved replacement of several critical systems. Commencing operations in 2007, the L&T Modular Fabrication Yard is the only facility of its kind in the Sultanate with the capability to undertake modular fabrication for the hydrocarbon sector. Article continues on next page ... 22 TARGET ENGINEERING Target Engineering is part of the Arabtec Holdings PJSC (owning 60% equity in the Company), the largest UAE based construction group. Target has enhanced its EPC capability internally as well as through acquisition. It now competes in the Oil & Gas and Energy projects for specialised marine, mechanical & electrical related design and engineering projects. The Company enjoys a niche in marine construction having undertaken technically challenging marine construction projects – 31 artificial islands in Abu Dhabi, Installation of Sub Sea Pipelines 2-3 kms into sea at Ras Abu Fontas, Dubai and in Ruwais. Some of the current projects being executed by the Company include – the Shah Gas Development Project for Abu Dhabi Gas Development Company, the Sea Water Cooling System for Ruwais NGL 4 project for GASCO / Petrofac – GS Engineering Joint Venture. Major ongoing projects in Qatar include the Qatar Petroleum - Halul Island Accommodation Facilities and the Ras Abu Fontas A2 Sea Water Intake & Pump Station for QEWC. Target’s work in hand as of 31 December 2012 was $310m, with the turnover for 2013 estimated to be $477 million. 23 Wood Group Wood Group has continued to expand its regional EPC offering and has had a stellar year in Iraq. Recently Shell Iraq Petroleum awarded a commissioning services contract to Wood Group-Consolidated Contractors Company to commission the first phase of the Majnoon field, near Basra in Southern Iraq. Majnoon is one of the world›s largest oil fields, estimated by the Iraqi government to hold about 38 billion barrels of oil. The one-year contract is effective June 2013. WGCCC will be responsible for the provision of skilled resources, tools, services and test equipment to assist the start-up, commissioning and testing of the new production facilities in the Majnoon field. New production facilities include well site facilities, a central production facility and all new-build facilities and utilities required to operate the field, including pipelines and infrastructure. http://www.arabianoilandgas.com/article-11303-revealed-2013s-top-20-epc-contractors/1/print/

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In November Wood Group PSN was awarded a contract by DNO to provide engineering and project support services to the Tawke field, in the Kurdistan region of Iraq. WGPSN is assigning a team of 30 engineers to the contract, mobilised into Kurdistan as required. Operating in Abu Dhabi, Oman, Qatar, Bahrain, and now Iraq, the company also recently invested $1.2 million in establishing a new engineering office in Gurgaon, India. Article continues on next page ... 24 SK E&C SK E&C has worked on a list of large projects in the Gulf over the last year. In Kuwait, the company continues progress on several gas projects, inclusing the $724 million EOC deal to build Booster station 132, which will handle 250 million cu ft a day of gas as part of Kuwait’s strategic investments in developing the country’s gas infrastructure. Commissioning is due to start in Q3 2012 with completion in Q1 2013. At the Wasit gas development in Al Sharqiyah, Saudi A rabia, SK E&C has been handed the EPC for an NGL f ractionation plant, with Saudi firm Mohammed Al Mojil group as subcontractor. The plant, being built by SK E&C under a LSTK contract due to complete in April 2014, will process non-associated gas from the offshore Arabiyah and Hasbah fields. The company also won the EPC for sulphur recovery units and a 1.7 billion cu ft a day gas processing unit. The company has also scooped downstream Saudi contracts for SATORP, and at Yanbu, and was also awarded the construction contract for the Zaha Hadid-designed $300 million King Abdullah Petroleum centre in Riyadh. SK E&C won a $34 million communication contract in Qatar in 2012. Article continues on next page ... 25 Lamprell A tough year for Lamprell as seen the f irm slide in our rankings, but a strong fu ndamental business proposition and expertise in the rig building and EPC engineering work will likely see the firm bounce back stronger over the coming twelve months. The year saw exceptional challenges faced by the Group, including underperforming key contracts, deteriorating financial position and investigation by the FSA. However, changes made at the Board level and within the management structure to address these issues has encouraged the firm to refocus on its core capabilities, and operational highlights include the delivery of four jack-up rigs over the past 18 months, in addition to two new build land rigs and numerous upgrade and refurbishment projects, relating both to jackup and land. The company has a current backlog of US$ 1.3 billion, with bid pipeline approximately US$ 4.1 billion. Lamprell is constructing an additional four rigs for a key client, National Drilling Company (NDC), and construction on all four rigs is underway at the Group’s Hamriyah facility in the UAE.

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Revealed: 2013's Top 20 EPC Contractors

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