Samsung Engineering receives an ethylene project contract from Ras Laffan Petrochemicals in Qatar

Samsung Engineering receives an ethylene project contract from Ras Laffan Petrochemicals in Qatar

MOSCOW (MRC) -- Samsung Engineering, one of the world’s leading engineering, procurement, construction and project management (EPC&PM) companies, announced that it was awarded a contract for an ethylene unit and its utilities for the Ras Laffan Petrochemicals Project (RLPP) in Qatar, said Hydrocarbonprocessing.

The Letter of Award (LoA) of the petrochemical plant, which will be located in Ras Laffan Industrial City, 80km north of Doha, was received on October 2022. Due to a binding confidentially agreement, the announcement was publicized today. Samsung Engineering will be executing the RLPP Ethylene Project jointly with CTCI as the ‘Samsung Engineering CTCI Joint Venture’ (SCJV).

The project is being built by Ras Laffan Petrochemicals (RLP), which is a joint venture consisting of Qatar Energy with a 70% stake and Chevron Phillips Chemical with a 30% stake. QatarEnergy and Chevron Phillips Chemical are building petrochemical projects in Qatar and the United States.

Samsung Engineering will be in charge of the major ethylene production facilities with its scope of work including furnaces, C2 hydrogenation, hydrogen purification unit and three main compressors. CTCI will be in charge of the utility infrastructure, including steam/condensate collecting and boiler feed water, among others. The project is expected to be completed in late 2026.

RLPP consists of two packages and SCJV is responsible to deliver Package 1, which includes the production facilities for 2.08 million tons of ethylene, as well as its utilities and offsite facilities. Ethylene produced by the unit will be delivered as feedstock for Package 2, which encompasses the project’s two high-density polyethylene units.

This project is meaningful to Samsung Engineering, since it is securing a new client in RLP and also marks the re-entry into the Qatari market after previously executing the Ras Laffan Diesel Hydrotreater (DHT) project. The company is currently executing numerous projects in MENA and this project further strengthens its regional presence.

It is also noteworthy that this project is one of the world's largest ethylene units in terms of capacity with 2.08 million tons per year. Through the expertise and know-how accumulated in previous ethylene projects, together with CTCI's rich experience in the Qatari market, Samsung Engineering is confident in delivering the RLPP Ethylene Project safely and at the client’s satisfaction. In addition, Samsung Engineering plans to provide exceptional schedule management to the client by applying a range of innovative strategies such as modularization, automation, and early purchasing of key equipment and materials.

Samsung Engineering’s President and CEO Hong Namkoong said, "Samsung Engineering is the ideal EPC contractor for this megaproject. We have the know-how and experience of successfully completing numerous ethylene projects," and further added, "We’re confident that we can deliver a supreme project to Ras Laffan Petrochemicals and therefore strengthen our relationship with them and position ourselves firmly in the MENA market."

We remind, Samsung Engineering, one of the world’s leading engineering, procurement, construction and project management companies announced that it has signed an agreement with Aramco for the National EPC Champions initiative. The official signing occurred on July 5, during the Saudi Aramco Namaat Industrial Investment Program event, held in the Al-Ghawar Hall at Aramco’s main office in Dhahran, Saudi Arabia. The formal agreement signing between Samsung Engineering, Al Rushaid Petroleum Investment Company (ARPIC), and Aramco took place earlier.

Phillips 66 to acquire publicly held common units of DCP Midstream

Phillips 66 to acquire publicly held common units of DCP Midstream

MOSCOW (MRC) -- Phillips 66 and DCP Midstream, LP announced that they have entered into a definitive agreement pursuant to which Phillips 66 will acquire all of the publicly held common units representing limited partner interests in DCP Midstream for cash consideration of USD41.75 per common unit, increasing its economic interest in DCP Midstream to 86.8%, said Hydrocarbonprocessing.

“We are delivering on our commitment to grow our NGL business,” said Mark Lashier, President and CEO of Phillips 66. “Our wellhead-to-market platform captures the full NGL value chain. As we continue integrating DCP Midstream, we are unlocking significant synergies and growth opportunities."

In combination with the previously announced realignment of Phillips 66’s economic and governance interests in DCP Midstream, the transaction is expected to generate an incremental USD1 billion of adjusted EBITDA for Phillips 66. In addition, Phillips 66 expects to capture operational and commercial synergies of at least USD300 million by integrating DCP Midstream into its existing midstream business.

Phillips 66 plans to fund the approximately USD3.8 billion cash consideration through a combination of cash and debt while maintaining its current investment grade credit ratings. The transaction is expected to close in the second quarter of 2023, subject to customary closing conditions.

The transaction was unanimously approved by the board of directors of DCP Midstream GP, LLC, the general partner of DCP Midstream GP, LP, the general partner of DCP Midstream, based on the unanimous approval and recommendation of a special committee comprised entirely of independent directors after evaluation of the transaction by the special committee in consultation with independent financial and legal advisors.

Affiliates of Phillips 66, as the holders of a majority of the outstanding DCP Midstream common units, have delivered their consent to approve the transaction. As a result, DCP Midstream has not solicited and is not soliciting approval of the transaction by any other holders of DCP Midstream common units.

Barclays acted as exclusive financial advisor to Phillips 66, Bracewell LLP acted as legal counsel to Phillips 66, and Morris, Nichols, Arsht & Tunnell LLP acted as special Delaware counsel to Phillips 66. Evercore acted as financial advisor to the special committee of the board of directors of DCP Midstream GP, LLC, and Hunton Andrews Kurth LLP and Richards, Layton & Finger, PA acted as legal counsel to the special committee.

We remind, Harvest Midstream will buy the Belle Chasse terminal in Louisiana from U.S. refiner Phillips 66, the privately held company said this week, a move that will boost its existing regional crude pipeline systems. The financial terms of the deal were not disclosed. Phillips 66 had unveiled its plans in November last year to convert the 50-year-old facility, formerly known as Alliance refinery, into an oil and refined products terminal after the refinery was idled due to severe damage from Hurricane Ida.

Venezuela oil exports slipped despite big assist from Iran

Venezuela oil exports slipped despite big assist from Iran

MOSCOW (MRC) -- Venezuela's oil exports last year declined due to infrastructure outages, U.S. sanctions and rising competition in its key Asia market despite assistance from ally Iran, according to shipping data and documents, said Reuters.

Exports this year are expected to get a lift after the United States relaxed oil sanctions by authorizing some partners of state-run firm Petroleos de Venezuela (PDVSA) to resume taking Venezuelan crude.

Iran expanded its role in Venezuela last year, sending supplies to boost exports and technicians to repair a refinery. But the poor condition of the country's ports, oilfields and refineries and harsh competition from Russia on crude supplies to China will keep limiting export gains, experts said.

PDVSA and its joint ventures exported some 616,540 barrels per day (bpd) of crude and refined products last year, a 2.5% drop from 2021 and slightly below 2020, according to a Reuters tally of data and documents.

"Despite the increased Iranian help, the decline in net exports results from a combination of production stagnation and the increasing competition of Russian exports in the Chinese black market," said Francisco Monaldi, a Latin American energy expert at Rice University's Baker Institute.

The OPEC-member country boosted its exports of petroleum coke, methanol and other oil byproducts, which helped offset some of the revenue loss. Shipments of these lower-value products more than tripled to 4.36 MM metric tons last year from 2021.

PDVSA's refineries began the new year processing 386,000 bpd of crude, less than 30% of their 1.3 MMbpd installed capacity, according to figures from employee unions.

We remind, U.S. oil producer Chevron Corp plans to export this month its first cargo of Venezuelan crude to its Pascagoula, Mississippi refinery following a U.S. license granted last year. The 500,000-barrel cargo of Hamaca heavy crude, to be loaded at state-run PDVSA's Jose port, comes from the Petropiar oil joint venture operated by both companies.

Technip Energies wins large project management consultancy contract by Kuwait Oil Company

Technip Energies wins large project management consultancy contract by Kuwait Oil Company

MOSCOW (MRC) -- Technip Energies has been awarded a large contract for Project Management Consultancy (PMC) by Kuwait Oil Company (KOC), said Hydrocarbonprocessing.

The five-year framework agreement contract covers front-end engineering design (FEED), project management, and associated services for KOC’s major projects.

This contract represents a renewal of the first five-year framework agreement that was awarded to Technip Energies by KOC in 2014.

Charles Cessot, Senior Vice-President T.EN X of Technip Energies, commented: “We are delighted by the continued confidence shown by KOC with this award to support them on their major developments. This award reinforces the strong and lasting relationship we have built with KOC and reaffirms our outstanding consultancy delivery as well as our long-standing presence in Kuwait."

A “large” award for Technip Energies is a contract award representing between €250 MM and €500 MM of revenue. As the framework agreement is call-off in nature, the overall value of the contract will be progressively added to order intake as it is called off by the client.

We remind, Technip Energies has been awarded a contract for the supply of proprietary cracking furnaces for the 2,000,000 tpy ethane cracker for the Golden Triangle Polymers project, a joint venture between Chevron Phillips Chemical (CPChem) and QatarEnergy, along the Gulf Coast in Orange, Texas. This latest award is in line with our early engagement strategy with CPChem and QatarEnergy, which resulted in the selection of our proprietary ethylene technology and includes the successful completion of the ethylene license and Process Design Package (PDP).

Petrobras reinforces security at refineries after threats

Petrobras reinforces security at refineries after threats

MOSCOW (MRC) -- Petroleo Brasileiro SA stepped up security at its refineries in a precautionary measure after threats against assets, including Brazil's biggest fuel plant, two company officials said, speaking on condition of anonymity, said Reuters.

The threats were detected by Petrobras' intelligence unit monitoring social media communications of supporters of Brazil's far-right former President Jair Bolsonaro, the two people said. The state-controlled company said on Sunday night all its assets and refineries were operating normally.

"Petrobras is taking all the preventative protective measures required, as a standard procedure," it said in a statement. Thousands of Bolsonaro' supporters on Sunday invaded the country's Congress, presidential palace and Supreme Court, destroying furniture and shattering windows, in an echo of the U.S. Capitol invasion in Jan. 6, 2021, by supporters of former President Donald Trump.

The threats to Petrobras targeted assets such as refineries in Sao Paulo, Rio de Janeiro and Parana states, the people said. Petrobras has a 1,000-person private security workforce and is working with state police. Brazil's Mines and Energy Minister, Alexandre Silveira, said Brazil's fuel supply would run normally, as would the country's refineries.

"Besides monitoring the status of protests in these structures, we remain alert and in coordination with other ministries and states to ensure the supply," he said in a statement.

Rio de Janeiro's governor Claudio Castro said on Twitter he had deployed on Saturday state and city police to reinforce security at Reduc, the state's main refinery.

We remind, Petrobras has started output at the Itapu pre-salt field in the Santos basin via the P-71 floating production, storage and offloading vessel. The P-71 FPSO, which features a processing capacity of 150,000 barrels per day of oil and 6 million cubic metres per day of natural gas, was deployed in water depths of 2010 metres. “We were able to anticipate production of the P-71 platform, which was originally scheduled for 2023,” said Petrobras production development director Joao Henrique Rittershaussen.