Buyuma Weekly Energy Roundup (Wk #28)

Hello There,

Welcome to this week's global Buyuma?oil and gas weekly update covering the latest energy news that made waves around the world.

Vallourec has secured a contract from TotalEnergies to supply almost 5,000 tonnes of OCTG solutions and associated services for the Kaminho deepwater project on Block 20, 100 km off the coast of Angola.

Engineering consultancy Wood has secured a long-term contract to provide engineering, procurement, and construction management (EPCm) solutions for Shell’s Prelude floating liquified natural gas (FLNG) unit.

Below are?updates that made the headlines in the Oil and Gas industry

Miko to Supply Hull Closure for Equinor FPSO Raia

Offshore Frontier Solutions Pte. Ltd., a MODEC Group company has placed a new contract with Miko Marine AS, of Norway, for the supply of sea inlet covers to be carried aboard its new floating production storage and offloading unit (FPSO).

The FPSO, named Raia, is being built for Equinor for operating in Brazil’s Campos Basin. It is being supplied with one sea chest cover and one set of pipe covers with delivery in Q2 of 2024.

The covers use powerful magnets to hold them in place over sea chests and pipe outlets. Internal repair and maintenance work can then be conducted safely with a reliable solution for keeping the water out.

Traditional hull closures are an effective method for sealing underwater openings but they require substantial hull fitments and diver intervention, which can make them costly and time-consuming to use.

Miko said its magnetic closures are designed to fit the individual vessel and are stored permanently on board. They can then be lowered over the hull opening whenever they are needed and secured in position by divers or remotely operated vehicle (ROV).

Kazakhstan Seeks to Increase Local Content in Oil and Gas Equipment Production

From July 10 to 12, the Kazakhstani city of Atyrau hosted the Oil and Gas Machine Building Forum.

The Forum aimed to develop local content and support domestic manufacturers of oil and gas equipment and local suppliers of works and services for the sector.

The event also included Open Doors Days for three major oil and gas operators in Kazakhstan: Tengizchevroil , NCOC , and Karachaganak Petroleum Operating B.V. (KPO) . As reported by the Kazakh Ministry of Energy, these three major subsoil users account for 70% of all oil and gas equipment purchases in Kazakhstan.

Speaking at the Forum, Vice Minister of Energy Alibek Zhamauov said that both Kazakhstan’s president and prime minister outlined several specific tasks aimed at developing local content in the oil and gas sector.

Particular attention, they said, should be paid to increasing the share of Kazakhstani goods, works and services in the sector’s purchases, creating new as well as modernizing existing production facilities, localizing the production of the most popular products in Kazakhstan, as well as moving design offices to the country, with the mandatory involvement of local engineers and design companies.

Due to efforts of the Ministry of Energy, in May of this year contracts were signed between Tengizchevroil, North Caspian Operating Company, and Karachaganak Petroleum Operating B.V. and domestic manufacturers for the purchase of locally made oil and gas equipment worth $240 million.

Speaking at the Forum, Leyla Gimranova, Deputy Director of the Project Department at KAZAKH INVEST , emphasized that oil and gas engineering could become a new growth point in developing domestic added-value production and import substitution.

She said that last year, Kazakhstan produced oil and gas equipment for $72.7 million and imported such equipment for $1 billion.

Vallourec Gets TotalEnergies’ Contract for Kaminho Deepwater Project

France-based tubular solutions supplier Vallourec has secured a contract from TotalEnergies to supply almost 5,000 tonnes of OCTG solutions and associated services for the Kaminho deepwater project on Block 20, 100 km off the coast of Angola.

On this project, Vallourec will supply its range of VAM connections and use CLEANWELL, its more environmentally-friendly, dope-free solution.

The company will also provide its offshore expertise via VAM Field Service as well as its Tubular Management Services (TMS) offering, which involves managing the inspection and preparation of tubes before they leave for the drilling platform, and on their return to the storage area.

The products will be manufactured at Vallourec plants in France, Brazil, and Indonesia.

“We are proud to support TotalEnergies in its developments and exploration projects. I would like to thank the Vallourec teams for their commitment,” said Philippe Guillemot, Chairman of the Board of Directors and Chief Executive Officer at Vallourec.

Wood Secures Engineering Work on Shell’s Prelude FLNG Unit

Engineering consultancy Wood has secured a long-term contract to provide engineering, procurement, and construction management (EPCm) solutions for 壳牌 ’s Prelude floating liquified natural gas (FLNG) unit.

Under the six-year contract signed with Shell, Wood will provide EPCm services for the world’s largest floating offshore gas facility, located some 475 km off the west coast of Australia.

The 488 meters long, Shell-operated Prelude FLNG unit forms part of an offshore development that produces natural gas from the remote namesake field north-northeast of Broome in Browse Basin.

The Prelude FLNG resumed operations late in December 2023, following extensive maintenance operations which started in August the same year.

“The contract will draw on our global LNG expertise and underlines our position as a market leader for brownfield engineering across Australia,” said Ken Gilmartin , CEO at Wood.

The first LNG shipment from the project - originally sanctioned in 2011 - was shipped back in June 2019, via the Valencia Knutsen LNG tanker to customers in Asia.

Shell is the operator of the project with 67.5% interest, with other partners being INPEX Corporation (17.5%), CPC (5%), and KOGAS AKKAS B.V. (10%).

Oilfield Equipment Market Set to Soar to US$ 164.80 Billion by 2030

The global oilfield equipment market is poised for substantial growth, with projections indicating a rise to US$ 164.80 billion by 2030, achieving a compound annual growth rate (CAGR) of 4.5% during the forecast period.

The increase in drilling and exploring operations worldwide is predicted to fuel the considerable expansion of the global oilfield equipment market, which is expected to reach around US$ 157.72 billion with an estimated compound annual growth rate (CAGR) of 4.5% during the forecast period.

Due to its whole dependence on upstream operations, the oilfield service sector stands to gain.

Read more here

That's it for this week. Until next time, Cheers!