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  • NRL Industry Snapshot – Oil & Gas (Oct 2018)

    latest oil and gas news snapshot

    Duncan Lowe, Recruitment Consultant at NRL Woking, with a round up of the latest Oil and Gas news including contract awards and international developments. Contact NRL if you’re a client looking to work with a highly experienced agency within the Oil & Gas industry or if you’re a candidate, you can request to be notified of the latest job opportunities.

    DUNCAN-LOWE-NRL

    UK

    Contract Awards

    KBR
    It has been a good month for KBR who have won concept design work for Browse LNG for two floating production vessels on the Browse project which will be managed by their London office. It is expected that this work will be undertaken away from Western Australia due to the volume of work and the experienced UK engineering team. The UK subsidiary of KBR has also just secured the FEED (Front-end Engineering Design) for the BP Tortue hub/terminal following completion of the pre-FEED.[1][2]

    Saipem
    Saipem has recently been awarded a pipeline EPC and installation contract as part of the development of the Tolmount Main gasfield. This is following the Jacobs award FEED for onshore work.[3]

    Other UK News

    Aker Solutions
    Following Aker Solutions making the decision to withdraw the necessity for subcontractors to have a local presence in Aberdeen, the business has placed a number of their Aberdeen local fabrication jobs at risk. If people are affected by this – NRL operates heavily in the fabrication recruitment sector. Whilst many projects are not scheduled until 2019, please feel free to contact us for future opportunities.[4]

    Equinor
    Equinor are taking Chevron’s significant ownership in the Rosebank field, as Chevron looks to withdraw from the North Sea territory barring the Clair Field, probably to invest in onshore developments such as shale and sour gas. As the operator with the most capital investment planned in the UK North Sea, industry thoughts are that they will be able to reduce the cost of the development of the Rosebank field through existing infrastructure. [5][6][7]

    Oil Exploration License Granted
    An exploration license has been granted to seek oil in the Isle of Man – BP did find oil here a while back but it was not significant enough to invest. This is amid news that smaller operators are picking up fields that do not seem to be large enough to interest the major oil companies in the North Sea. This may be changing, however, as the major oil & natural gas companies are increasingly tying back new, smaller fields to existing platforms to lower the cost of developing new, smaller fields.[8][9][10]

    Higher Profits for Oil Majors
    Oil majors are reporting higher profits following a rebound in oil price and worker shift patterns are being altered to drive efficiencies. It seems that the potential of strikes and higher labour costs are increasing. Interestingly Equinor has this month brought into action the first unmanned platform in the Norwegian Continental Shelf for a smaller oil field which is anticipated the cost per barrel from this development to fall below $20 per barrel. Is this the future for smaller fields and developments in the North Sea?[11][12]

     

    International

    Contract Awards

    LNG Canada Project
    The LNG Canada project expected to represent around $40 Billion of investment into Canada’s Western Coast has awarded significant design & build contracts to Fluor and JGC Corporation. This is significant as the project (led by Shell) represents a significant investment in the rapidly growing LNG market – this facility, once completed would be geographically well positioned to service the Chinese market which forms the largest growth market.[13][14]

    Saipem wins FEED Contract
    Saipem has just won a €3 million FEED contract for the Tortue Offshore LNG Terminal between Senegal and Mauritania.[15]

    Other International News

    Total Invests in Jubail Petrochemical Facility
    Despite political issues ongoing and many high profile companies distancing themselves from Saudi Arabia, it seems Total are doing the opposite. They have recently agreed to invest $5 Billion in the Jubail petrochemical facility in KSA. Their CEO has also been highly visible at an investor event in the region which many large businesses boycotted. Could this be a sign of intent from the French major Oil production business in the region?[16][17]

    Jacobs Engineering to Exit Oil & Gas?
    Jacobs Engineering look to be making an exit from the Oil & Gas industry, announcing plans this month to sell off their ECR business to Worley Parsons for $3.3 Billion. This appears to be in line with their strategy to focus on less cyclical industries such as infrastructure as demonstrated by their acquisition of CH2M Hill.[18]

    Interested in working in Oil & Gas or are you a client looking to work with a highly experienced agency within the Oil & Gas industry? Contact our specialist branches: Woking & Falkirk.

     

    References

    1. https://thewest.com.au/business/engineering/wa-engineers-set-to-miss-out-on-900m-of-lng-work-ng-b88989091z

    2. http://investors.kbr.com/investors/press-releases/Press-Release-Details/2018/KBR-Awarded-FEED-Contract-for-BPs-Tortue-Project/default.aspx

    3. http://www.saipem.com/sites/SAIPEM_en_IT/con-side-dx/Press%20releases/2018/new%20offshore%20contracts.page

    4. https://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-45862281

    5. http://www.kallanishenergy.com/2018/10/03/equinor-buys-chevrons-40-stake-in-uks-rosebank

    6. https://www.offshore-technology.com/comment/equinor-leads-new-build-capex-across-oil-gas-value-chain-europe

    7. https://maritime-executive.com/article/chevron-becomes-first-major-to-exit-norway-s-offshore-sector

    8. https://www.itv.com/news/granada/2018-10-15/oil-and-gas-exploration-licence-granted-for-isle-of-man-seabed-search/

    9. https://www.heraldscotland.com/business_hq/17000571.400m-north-sea-field-developments-approved-as-recovery-gathers-momentum/

    10. http://www.cityam.com/266338/bp-and-shell-get-green-light-north-sea-joint-venture

    11. https://www.ft.com/content/20424042-cc7d-11e8-b276-b9069bde0956

    12. https://www.maritime-executive.com/article/norwegian-continental-shelf-gets-first-unmanned-platform

    13. https://business.financialpost.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/fluor-joint-venture-to-design-and-build-lng-canada-project

    14. https://biv.com/article/2018/10/lng-canada-project-go

    15. https://www.lngindustry.com/liquid-natural-gas/16102018/saipem-wins-tortue-lng-project-contract/

    16. https://www.cnn.com/2018/10/22/business/total-ceo-saudi-conference/index.html

    17. http://saudigazette.com.sa/article/545145/BUSINESS/Aramco-Total-sign-FEED-agreement-for-Jubail-petrochemical-complex

    18. http://uk.businessinsider.com/jacobs-engineering-sells-energy-resources-business-33-billlion-2018-10

    19. https://www.ogj.com/articles/2018/10/epc-contract-let-for-thai-refinery-upgrade.html