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Middle East

05.01.2011  |  Meche, Helen,  Hydrocarbon Processing Staff, Houston, TX

Keywords: [construction] [lubricants] [refinery expansion] [engineering services] [FEED] [petrochemicals] [GTL] [methanol] [procurement services]

Neste Oil and Abu Dhabi National Oil Co. (ADNOC) have a partnership concerning very high-viscosity index (VHVI) base oils. Along with the cooperation, 600,000 metric tpy of NEXBASE base oil is expected to be brought onto the market at the end of 2013. Takreer, a subsidiary of ADNOC, will supply the feedstock, as well as operate and maintain the plant, while Neste Oil will be responsible for the sales and marketing of the base oil on behalf of ADNOC. There will be no investment costs for Neste Oil related to this activity.

The plant is based on ExxonMobil Research and Engineering’s hydroisomerization technology and Neste Jacobs’ distillation technology. It will have a capacity of 500,000 metric tpy of Group III base oil to be used in blending top-tier lubricants, as well as 100,000 metric tons of Group II base oil. Commercial production is expected to start at the end of 2013.

In May 2010, Takreer awarded the engineering, procurement and construction (EPC) contract to Hyundai Engineering, and the project is proceeding on-schedule.


KBR has been awarded a contract by Saudi Aramco Lubricating Oil Refining Co. (Luberef) to implement KBR’s proprietary solvent deasphalting (SDA) technology, ROSE, for Luberef’s Yanbu Refinery Expansion Project in Saudi Arabia. Under the contract, KBR will provide technology licensing and basic engineering services to revamp and almost double the capacity of Luberef’s existing propane-deasphalting (PDA) unit. The existing PDA unit, which is based on conventional SDA technology, will be converted to KBR’s ROSE technology. In addition to increasing production volumes, the PDA revamp will allow Luberef to increase brightstock and by-product production.

A bidding group led by Mustang Al-Hejailan Engineering, a Wood Group company, has been awarded a General Engineering Services Plus (GES+) contract by Saudi Aramco. The contract establishes a long-term framework for the supply of engineering, procurement and construction management services to support the execution of onshore and offshore oil and gas projects within the Kingdom of Saudi Arabia. The duration of the contract is five years, plus three one-year extension options.

The release of work under the contract is contingent on Mustang Al-Hejailan Engineering finalizing agreements to combine with two Saudi-owned engineering businesses, Dar E&C, which will be the second largest participant in the bidding group, and PI-Consult (taken together, the “bidding group”). Further details will be announced once the terms of the transactions have been finalized. The intention is that the resources of Mustang Al-Hejailan Engineering, Dar E&C and PI-Consult will be combined to create a leading in-Kingdom engineering and project management services provider. Mustang will continue to lead the company.


A subsidiary of Foster Wheeler AG’s Global Engineering and Construction Group, along with the subsidiary’s consortium partners comprising A. Al-Saihati, A. Fattani and O. Al-Othman Consulting Engineering Co. (SOFCON) and Saudi Consolidated Engineering Co.–Khatib & Alami (SCEC K&A) have signed a contract with Saudi Aramco for the provision of services associated with Saudi Aramco’s GES+ initiative for a duration of five years, with options available for extensions.

Under contract terms, Foster Wheeler and its consortium partners will perform engineering and project-management services including pre-front-end engineering design (pre-FEED), FEED, detailed design and procurement services for onshore/offshore oil and gas, refining, petrochemicals and associated infrastructure projects in Saudi Arabia. The work will be executed from the consortium’s offices located in the city of Al-Khobar in the Kingdom of Saudi Arabia.


Jacobs Engineering Group Inc. has received an award from the Jubail Chemical Industrial Co., Ltd. (JANA) to provide technical and project-management services for its existing epichlorohydrin plant expansion and a new epichlorohydrin plant at the Jubail, Saudi Arabia, site. JANA is a wholly owned subsidiary of NAMA Chemicals.

Under the agreement, Jacobs is providing technical and project-management services for both inside battery limits (ISBL) and outside battery limits (OSBL). The ISBL services involve debottlenecking of their existing epichlorohydrin plant to increase capacity, and the OSBL services cover all utilities and the tankage area. Jacobs’ scope also includes cost-estimate preparation and project-management support for JANA’s new epichlorohydrin plant, to be built at the same site in Jubail. This expansion is intended to increase the Jubail site’s epoxy resins production capacity to 240 kiloton/yr.


Qatar Petroleum (QP) and Shell have announced the first flow of dedicated offshore gas into the Pearl gas-to-liquids (GTL) plant located in Ras Laffan Industrial City in the State of Qatar. Shell, the operator of the Pearl GTL plant, developed under a production and sharing agreement with QP, has opened natural gas wells offshore, allowing the first sour gas to flow through a subsea pipeline into the giant GTL plant onshore. Sections of the Pearl GTL plant will be started up progressively over the coming months.

The Pearl GTL project was launched in July 2006 and the first stone was laid by His Highness Sheikh Tamim bin Hamad Al-Thani, the Heir Apparent, in February 2007.

Once fully operational, Pearl will produce 1.6 Bcfd of gas from the North Field, which will be processed to generate 120,000 bpd of condensate and natural gas liquids and 140,000 bpd of GTL products.

Samsung Engineering received a $2.76 billion contract for the Shaybah natural gas liquid (NGL) project at a signing ceremony held at Saudi Aramco’s headquarters in Dhahran. This NGL facility, to be located 800 km southeast of Dhahran in Shaybah, is expected to secure feedstock supplies for the kingdom’s hydrocarbon business. The complex will produce 750,000 bpd of oil, process gas of 2,400 million scfd, and recover 200,000 bpd of NGL. Samsung Engineering will provide engineering, procurement and construction for all four units in this plant complex on a lump-sum turnkey basis. Mechanical completion is scheduled by June 2014.


Egypt Japan Petrochemical Corp. S.A.E. (EJPC) and Davy Process Technology Ltd., a wholly owned subsidiary of Johnson Matthey Plc (JM), have signed a methanol operating license agreement. EJPC is developing a world-scale combined methanol and ammonia project comprising a 6,000-metric-tpd methanol plant that will use Davy’s technology, and a 2,000-metric-tpd ammonia plant (the Project).

The methanol plant, which will use steam reforming of natural gas in conjunction with the advanced methanol synthesis process developed and licensed by Davy and JM, will reportedly be the largest methanol plant in the world. The hydrogen-rich purge gas from the methanol loop will be used in the integrated ammonia plant. This project is a key component in the development of Carbon Holdings’ petrochemicals business, with construction scheduled to commence in 2012.


Alfa Laval has received an order for delivery of Alfa Laval Packinox heat exchangers to a refinery in Saudi Arabia. The order value is about SEK 75 million and delivery is scheduled for 2012. The Packinox heat exchangers will be used in a catalytic reforming unit for producing gasoline. Last year, half of Alfa Laval’s big orders came from refineries and the vast majority of these included Alfa Laval Packinox heat exchangers.  HP



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