Norske Shell divests USD526m of stakes in Norwegian offshore fields

MOSCOW (MRC) -- Norske Shell, a subsidiary of Royal Dutch Shell, has divested its interests in the Draugen and Gjoa offshore fields on the Norwegian continental shelf (NCS) to oil and gas firm OKEA for Nkr4.52bn (USD526m), according to Offshore Technology.

The firm signed an agreement with OKEA in June for the sale of its stakes in the fields.

OKEA acquired Norske Shell’s 44.56% operated interest in the Draugen field (PL093) and 12% non-operated interest in the Gjoa field (PL153).

As a result of the deal, the company will assume operatorship of the Draugen field and absorb more than 153 employees from Norske Shell.

The two fields accounted for around 14% of Norske Shell’s total production last year.

Norske Shell managing director Rich Denny said: "Today’s deal completion was achieved despite a tight timeline from the Sales and Purchase Agreement in June 2018. It was made possible by good collaboration between Shell and OKEA, and with constructive dialogue with the Norwegian Authorities."

"The transaction is part of Shell’s USD30bn divestment programme and the strategy to simplify its portfolio."

Despite the sale, Norske Shell will continue to operate in Norway through its operating interests in Ormen Lange and Knarr and non-operating stake in Troll, Valemon, and Kvitebjorn.

Norske Shell will also continue to serve as the technical service provider of the Nyhamna gas processing plant.

The transaction is part of Shell’s USD30bn divestment programme and the strategy to simplify its portfolio.

Earlier this month, Shell Australia agreed to offload its interest in the Greater Sunrise natural gas fields located off the northern coast of the country.

Last month, the company reached an agreement to sell its Danish upstream interests to Norwegian Energy Company (Noreco) for USD1.9bn.

Royal Dutch Shell, commonly known as Shell, is an Anglo–Dutch multinational oil and gas company headquartered in the Netherlands and incorporated in the United Kingdom.Created by the merger of Royal Dutch Petroleum and UK-based Shell Transport & Trading, it is the fourth largest company in the world as of 2014, in terms of revenue, and one of the six oil and gas "supermajors".

Saipem servers suffer cyber attack in Middle East

MOSCOW (MRC) - Italian oil services company Saipem said it had identified a cyber attack out of India that had primarily affected its servers in the Middle East, as per Hydrocarbonprocessing.

"We are collecting all the elements useful for assessing the impact on our infrastructures and the actions to be taken to restore normal activities," the firm said in a statement.

Saipem’s head of digital and innovation, Mauro Piasere, told Reuters the attack had originated in Chennai, India. Servers in Saudi Arabia, the United Arab Emirates and Kuwait had been attacked as too, partially, had infrastructure in Aberdeen in Scotland, he said.

But he added the group’s servers in its main operating centers in Italy, France and Britain had not been affected.

"The servers involved have been shut down for the time being to assess the scale of the attack," he said, adding that data back-up systems would be activated once the threat was eliminated.

"There has been no loss of data because all our systems have back-ups," he said. Its biggest client is Saudi Aramco with whom it has a framework agreement to 2021.

Saipem said it was notifying the report of the incident to the competent authorities.

Russian Antipinsky refinery halts crude processing

MOSCOW (MRC) -- New Stream, the owner of Russian private oil refinery Antipinsky, said oil flows to the plant would resume shortly and the company was processing payments for supplies with Sberbank, reported Reuters.

Sources told Reuters the oil refinery halted processing on Dec. 5 due to lack of crude supplies.

"Neither primary, nor secondary units are working, the plant is completely stopped," one of the sources said.

We remind that, as MRC informed before, Russia's NOVATEK Group has selected Topsoe hydrogen technology for their first refinery. The hydrogen plant is slated to begin operation in the second quarter of 2020, and basic engineering has already begun.

BCPL restart of PP and PE plants

MOSCOW (MRC) -- Brahmaputra Crackers and Polymers Ltd (BCPL) has brought on-stream its PE and PP plants, as per Apic-online.

A Polymerupdate source in India informed that the company has resumed operations at the plants on December 10, 2018 following an unplanned outage. The plants were shut in early-November, 2018 owing to technical issues and was supposed to remain off-line for around 15-20 days.

Located at Lepetkata, near Dibrugarh in Assam, the petrochemical complex have an PE production capacity of 220,000 mt/year and PP production capacity of 60,000 mt/year.

As MRC wrote previously, the Brahmaputra Cracker and Polymer Limited (BCPL), also known as the Assam gas cracker project, was commissioned in 2015.

BCPL is a joint venture owned 70% by GAIL and 10% each by OIL, NRL and the Assam government.

McDermott awarded contract by Bayport Polymers for new PE plant in South Texas

MOSCOW (MRC) -- McDermott International, Inc. has announced a contract award from Bayport Polymers LLC, a joint venture of Total Petrochemicals & Refining USA, Inc., and Novealis Holdings LLC (a joint venture of Borealis AG and NOVA Chemicals Inc.), for its new High-Density Polyethylene (HDPE) plant, the Borstar Bay3 Project, in Bayport, Texas, as per Hydrocarbonprocessing.

McDermott's scope of work on the Borstar Bay3 Project includes the engineering, procurement, fabrication, and construction (EPFC) of a 625,000 tons/year HDPE plant. Project execution will be led out of McDermott's Houston offices. The Project will be based on a modular approach that will utilize the Company's world-class facility in Altamira, Mexico, to efficiently fabricate and assemble process and pipe rack modules. The construction phase will leverage the strength of McDermott's Gulf Coast direct hire construction capabilities and will include the use of specialty sub-contracts.

"This award continues our strong and sustainable relationship with the Total, Borealis, NOVA Chemicals JV team following the award in March of 2017 for their ethane cracker in Port Arthur," said Richard Heo, Senior Vice President for North, Central and South America. "The Borstar Bay3 Project is an example of how our vertically integrated, 'One McDermott Way' operating model delivers value to our customers while reducing cost and risk on projects of this scale."

Mechanical completion and construction of the facility are expected to be complete in 2021. The new plant will also be ready for hydrocarbon introduction in 2021.

As MRC reported earllier, in October 2018, McDermott International, Inc. was awarded a significant contract by LUKOIL NizhegorodNefteorgSyntez, a subsidiary of JSC LUKOIL, for the engineering, procurement and construction (EPC) of the Delayed Coker Unit for the Deep Conversion Complex planned to be built in Kstovo, Russia.