OGME2016Top30EPCContractors:0110

IndrajitSen,June12th,2016
1.Petrofac
Petrofacishelpingsecureitsbrightfutureintheregionthroughitscommitmentto
nationalisationschemes.
Forthesecondtimeinarow,UKbasedglobaloilfieldservicesgiantPetrofachas
earnedthetopspotintheOil&GasMiddleEastTop30EPCContractorslist.In
mid2015,Petrofacwasawardeda$780mncontractbytheKuwaitOilCompany
(KOC)foritsmanifoldgrouptrunkline(MGT)system.Thelumpsumengineering,
procurementandconstruction(EPC)projectisintegraltoKOCsplanstoincreaseandmaintaincrudeproductionoverthenext
fiveyears,Petrofacstatedatthetime.
Alsolastyear,a$900mnworthcontractwasawardedbyPetroleumDevelopmentOman(PDO)toprovideEPCservicesforits
YibalKhuffproject.ThefourandahalfyearcontractwillseePetrofacprovidereimbursabledetailedengineering,and
constructionandcommissioningmanagementsupportservicesandprocurementonanincentivisedpassthroughbasis.
Earlierthisyear,SaudiAramcoawardedPetrofactheEPCcontractforitsgreenfielddevelopment,workingonthesulphur
recoveryplantaspartofSaudiAramcosFadhiligasprogramme.
Despiteallegationssurroundingaseniorcompanyexecutivepayingabribeworth$2mntosecureacontractinKuwait,Petrofac
enjoysanesteemedreputationofbeingnotjustamajorEPCcontractingfirm,butalsoforsupportingvariousnationalisation
schemes.InSaudiArabia,Petrofachastrainedaround140youngSaudinationalstobecomeengineersintheoilandgas
sectorinthekingdom.AdozenSaudiwomenhavealsobeenhiredinthecompanysKhobarofficeininformationtechnology,
projectcontrols,contracts,administration,organisationaldevelopmentandcorporatesocialresponsibilityroles,Petrofacstated.
2.Larsen&Toubro(L&T)
ProgressingupthelistthisyeartobagthesecondspotisIndianconstructiongiantLarsen&Toubro(L&T).Thecompany,ina
consortiumwithSingaporebasedEmasAMC,recentlywonamassiveEPCcontractworthmorethan$1bnfromSaudiAramco
fortheexpansionoftheoffshoreHasbahsourgasfield.Workontheexpansionschemeincludesbuildingplatformsand
pipelines,withthefieldssupplyfeedingtheFadhiligasplant,a$6bncomplexthatwillincludeagasprocessingunitand
sulphurrecovery.
Itisthesecondmajorcontractwinfortheduoinrecentmonths:EmasAMC,aunitofEzraHoldings,alsoteameduplastyear
withthefirmtosecurealongtermcontractwithAramcotoworkonoffshorefacilities.TheexpansionofHasbahwillsupply
2bnstandardcubicfeetperday(scfd)ofgastotheFadhiliplant,forwhichAramcoawardedaconstructioncontractlastyear.
InAprilL&THydrocarbonEngineering(LTHE),asubsidiaryofLarsenandToubro,wontwoorders,worth$370mnfromstate
ownedPetroleumDevelopmentOman(PDO).Thefirstoftheseisanengineering,procurementandconstruction(EPC)dealfor
theSaihNihaydahDepletionCompressionPhase2(SNDC2)project.ThesecondisanEPCdealforphasetwooftheKauther
DepletionCompression(KDC2)project.
Lastyear,LTHEcommissionedthe$400mnplusUmmLuluPhaseI&NasrPhaseIFieldDevelopmentprojectsoftheAbuDhabi
MarineOperatingCompany(ADMAOPCO).ModificationswerealsomadetoZADCOsUmmAlDalkhCentralProcessingPlatform
andtheUmmShaifplatformintheNasrfieldtoimproveproduction,andanewmultiphasesubseaexportpipelinewas
installedatTotalsAbuAlBukooshfacilities.
3.SNCLavalin
ThirdonourlistisCanadabasedcontractorSNCLavalin.InMarchthecompanyannouncedthatithadbeenawardeda
significantoilandgascontractintheMiddleEastwithanapproximatevalueof$800mn.Theprojectwillinvolvedeveloping
theinfrastructureandprocessingfacilitiesforagasfield,withSNCLavalinslumpsumturnkeyengineering,procurementand
construction(EPC)scopeontheprojectincludingconnectinggasproducingwellsintothemainprocessingplant.

Latelastyear,QatargasawardedacontracttoSNCLavalinforawaterrecyclingfacilityatitsLaffanRefinery2plantinRas
LaffanIndustrialCity.SNCLavalinisprovidingengineering,procurement,supply,constructionandcommissioningservicesfor
therecyclingfacilitytohandletreatedindustrialwaterfromtheLaffanRefineries1and2.Thecontractisexpectedtobe
completedinQ12017.SNCLavalinwasalsoawardedacontractinmid2014bytheAbuDhabiCompanyforOnshoreOil
Operations(ADCO),asubsidiaryofAbuDhabiNationalOilCompany(ADNOC),toprovideafrontendengineeringdesign
(FEED)studyforPhase2oftheQusahwiraOilField.
ThefirmalsotripleditsadjustedprofitsinQ42015to$0.33persharecomparedwiththe$0.11pershareachievedinthe
sameperiodin2014.Afteryearsofweatheringsuccessivecorruptioncasesinmultiplecountriesandalltheassociatedlegal
costs,thecompanysadjustedQ42015netincomeroseto$49.2mn,from$16.9mnin2014.Thecompanysaiditanticipated
earningstorisein2016tobetween$1.12pershareand$1.27pershare.
Bytheendof2015,SNCsbacklogstoodat$8.94bn,andthecompanystarted2016strongly,winningthe$600mnoiland
gasprojectinQatar,aswellasa$1bnnuclearplantprojectinOntario,Canada.
4.Saipem
TheItalianconstructionfirmannouncedthatitwonoffshoreEPCIprojectsworth$680mninQ4oflastyear.
ItalysSaipemhassecuredthefourthspotintheEPCcontractorsrankings.InQ42015,thecompanyannouncedthatithad
wonoffshoreEPCIprojectsworth$680mnfromSaudiAramcoandItalysEni.
TheSaudiAramcocontractinvolvestheengineering,procurement,transportationandinstallationofoffshorestructures.The
EPCIcontractfromEni,meanwhile,wasfortheBlock15/06EastHubDevelopmentProject,whichisscheduledtobe
completedbytheendof2016.
Thisyear,Saipemalsoenteredintoamemorandumofunderstanding(MoU)withIranianenergyfirmRavaziOilandGas
Development,todeveloptheToosgasfield,innortheasternIran,drillinguptosevenwells,anddesigningandbuildingall
upstreamgasproductionfacilitiesfortheproject.
TheItaliancontractingcompanyisalsomakingstridesintheregionaldownstreamsector.InSeptember2015,Saipemwas
awardedcontractsworth$1.3bnbytheKuwaitNationalPetroleumCorporationforPackage4andPackage5oftheAlZour
NewRefineryProject(NRP).Package4,forwhichSaipemhasreceivedawardnotificationinjointventurewithEssarProjects
Limited,consistsofengineering,procurement,construction,precommissioning,andassistanceduringcommissioning/start
up/performancetestingforthetankages,relatedroadworks,buildings,piperacks,pipelines,watersystemsandcontrol
systems,andwillbecompletedbythebeginningof2019.Package5,forwhichSaipemhasreceivedawardnotificationinjoint
venturewithHyundaiEngineering&ConstructionandSKEngineering&Construction,consistsofoffshoremaritimeexport
facilitiesfortheAlZourNRP.
5.WoodGroup
WoodGrouphassecuredtwonew,threeyearcontracts,collectivelyvaluedatmorethan$140mn,todelivertechnicalservices
andexpertisetoaleadinginternationaloilcompany(IOC)inIraq,earningthecompanythefifthspotinourlist.WoodGroup
PSN(WGPSN)willprovidebrownfieldfrontendengineeringdesign(FEED),detailedengineering,projectmanagement,
procurementservices,systemcompletionandcommissioningsupportforoperationsandstartuponasignificantonshoreasset
insouthernIraqunderthetwocontracts.
Effectiveimmediatelyandcreatingmorethan100newjobs,thecontractswillbedeliveredfromsouthernIraqandDubai.
DavidBuchan,WGPSNseasternregionmanagingdirector,said:EstablishinganofficeinDubaiandabaseinIraqreflectsour
intentiontobuildlastingcustomerrelationshipsandfocusonthedevelopmentofourIraqiworkforceandsupplychain
partnerships.
Latelastyear,thecompanyalsoannouncedwinninga$90mncontracttodeliverservicesforanunnamedIOCinIraq.WGPSN
saiditwillprovideprojectmanagementforanonshorefacilityunderthethreeyearcontract.ConceptandFEEDworkforfuture
projectswasalsoincludedinthecontract.
Alsoin2015,thegroupwasawardedacontractbySaudiAramcoforgreenfieldandbrownfieldEPCsupportfornewfacilities
intheGulf.Thesixyearcontract,whichincludesoptionsfortwothreeyearrenewals,includestheestablishmentofanoffshore
engineeringcentreofexcellenceinAlKhobar,SaudiArabia.WorkwillbeperformedbyWoodGroupMustangintheUS.In
kingdomworkscopewillbeexecutedbySaudiArabianjointventure,MustangHDP.
6.Galfar

OmansGalfarEngineeringhasrocketedupfromnumber22lastyeartosixthinthisyearslist,byvirtueofitsnearly$300mn
contractwinfromPetroleumDevelopmentOman(PDO)fortheYibalKhuffprojectsouthwestofMuscat.
ThecontractwillseeGalfarbuildanewcentralprocessingfacilityatthefield.
GalfarhasbeenthecontractorofchoiceforPDO,asmidlastyearthecompanyannouncedithadwonacontracttobuildand
installagasgatheringsystemattheKhazzanGasprojectinOman.Thefirmsaidthatthecontractisworth$110mnand
involvestheconstructionofduplexstainlesssteel(DSS)pipelines,includingmainheaders,subheadersandflowlines.
Lastmonth,Galfarannouncedthattheparentcompanycontinuestomaintainanorderbookpositionintherangeofmore
than$1.9bn.Thecompanybaggedprojectsworth$493mnduringthefirstquarterof2016,ofwhich$296mnwasintheoil
andgassector.Theparentcompanyhasmadeanetprofitof$2.5mnforQ12016.
7.WorleyParsons
IthasbeengoodgoingforAustralianprojectandengineeringconsultancyfirmWorleyParsons,asithashelditspositionas
oneofthechiefconsultantstoSaudiAramcoformorethanadecade.Inmidlastyear,thefirmbaggedanewsixyearcontract
toprovideprojectmanagementservicesfortheworldsbiggestoilproducingcompanysoffshoreprogramme.Underthenew
contract,thecompanyhasbeenprovidingprojectmanagementandengineeringservicesforexistingandnewoffshorefacilities
aspartofAramcoscapitalprogramme.WorleyParsonswillalsoprovideprojectmanagementconsultancyservicesformarine
vessels.
InDecember2015,thefirmwonaprojectmanagementcontractworth$87mnfromtheBahrainPetroleumCompany(BAPCO)
foritsmodernisationprogramme.Theprogrammeaimstooptimisetherefineryconfiguration.Uponcompletion,thetotal
refinerythroughputisexpectedtostandat360,000barrelsperday(bpd).
Thecompany,whichregisteredrevenuesof$7.28bnin2015,lastyearwonaFEEDcontractfromLukoilinIraq,aswellasa
fiveyearprojectmanagementcontractfromtheKuwaitOilCompany(KOC),andafouryearengineeringservicescontractfrom
theKuwaitGulfOilCompanysWafraJointOperations.
8.NPCC
TheUAEsNationalPetroleumConstructionCompany(NPCC)hasmadeitintothetop10EPCcontractorsduetoitsregional
ambitionsandfocusonmidstreamcontracts.NPCChasbeenchosenasacontractorfortheSaudiBahrainpipelineproject,due
tobecompletedbynextyear.
AlongwithitsSaudisubsidiary,NPCCwasselectedtobuildthepipelinesoffshoresection,runningfromSaudiArabiaseast
coasttosouthwesternBahrain.TheEmiraticompanywasawardedtheprojectssecondpackage,withthescopeofwork
includingengineering,designandprocurement,aswellasfabrication,transportationandinstallationoftheoffshorepipeline,
whichwillequippedwithasubmarinefibreopticcable,andImpressedCurrentCathodicProtection(ICCP)tocontrolcorrosion
onthepipe.
Inaddition,NPCCisworkingona$410mnEPCcontractforADNOCssubsidiaryGASCO.Whiletheinitialphaseoftheprojectis
beingexecutedfromthecontractorsofficeinAbuDhabi,itisscheduledtolatermovetotheoffshoresitesforconstruction
activities.
9.KBR
Americanengineering,procurementandconstructioncompanyKBRInchasannouncedsolidQ12016financialresults.Net
incomeattributabletoKBRwas$42mn.Consolidatedrevenuewas$1bn.
Weareontracktoachievetheyearend2016targetsforatleast$200mninannualcostsavingsandtodate,thecompany
hasidentifiedandactionedmorethan$180mnofthesavingstarget,StuartBradie,presidentandchiefexecutiveofficerof
KBR,said.
KBRhashadastrongpresenceintheMiddleEastfordecades,workingonseveralmajorpetrochemicalprojectsinSaudiArabia,
includingprovidingSaudiAramcowithfrontendengineeringanddesignandprojectmanagementservicesfortheJazan
Refinery,theYanbuRefineryandtheShaybahNGLprogramme.
ThecompanyispresentlyprovidingprojectmanagementservicestoSaudiAramcoforitsoffshoreprogramme.Thissixyear
contractwillseeKBRprovideservicesforAramcoscapitalprogram.KBRsSaudijointventurecompany,KBRAMCDE,will
undertakeallinkingdomwork,whiletheHoustonandLondonoperationscentreswillexecutealloutofkingdomscopes.KBR
AMCDEisalsodevelopinganinkingdomcentreofengineeringtotrainSaudiengineers.

10.HyundaiEngineering&Construction
HyundaiEngineering&Construction(E&C)isleadingaconsortiumofcontractorsthatwonacontractworthalmost$3bnin
Kuwaitinthefirstquarterofthisyear.TheKuwaitNationalPetroleumCompany(KNPC)awardedthedeal,whichwillseethe
consortiumbuildLNGfacilitiesinthecountry.Theconsortiumsaidtheprojectwouldbecompletedin2020.
HyundaiE&Csubsidiary,HyundaiHeavyIndustries(HHI),isalsoworkingona$1.94bncontractforengineering,procurement,
construction,installationandcommissioningworkatthesecondpackageoftheUAEsNasrFullFielddevelopmentprojectfrom
theAbuDhabiMarineOperatingCompany(ADMAOPCO).
HyundaiE&CisalsobuildingtheprocessingandexportfacilitiesforADMAOPCOsSatahAlRazboot(Sarb)FullField
DevelopmentProject.

OGME2016Top30EPCContractors:1120

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