Tag: Contract

US crude production dropped rapidly during April and May, but figures released by the Energy Information Administration (EIA) showed that this had plateaued and there have been some well reactivations and drawdowns from crude stocks. Total production curtailments in North America were more than 2.5 million bbl/d in May. ConocoPhillips Chairman and CEO Ryan Lance said in remarks to the media that a return to pre-outbreak production levels of 13 million bbl/d looked “pretty difficult”, although a recovery to 11 million bbl/d or possibly as high as 12 million bbl/d would be possible, depending upon OPEC moves. About one third of the company’s production was shut in as of the start of June – some 400,000 bbl/d. Lance argued that low cost shale oil resources still exist in the US, but there will be pressure on companies to reduce capital spending. The Covid19 outbreak has had a major impact in investment announcements, with a large number of project delays in the US due to uncertainty over future demand levels. Planned US exploration and production expenditure is down by 50% for the second half of 2020, while the rig count was down 60% on February.

Maire Tecnimont subsidiary Tecnimont SpA has finalised its $350 million EPC contract with Egypt Hydrocarbon Corp. (EHC) for the construction of a new ammonia plant at Ain Sokhna. The preliminary contract was announced in September last year. The contract for the plant, which will produce 1,320 t/d of ammonia, also includes extensive utilities and offsite facilities. Project completion is scheduled for 36 months from the effective contract date, which will be triggered by financial closure of the project. Project finance is being arranged by the Italian export credit agency SACE and the US EXIM Bank. The ammonia will be used to feed an ammonium nitrate plant, already existing and in operation in the same industrial facility, also owned by EHC.

The fertilizer industry’s ‘essential’ status is no barrier to bearish pricing, according to Andy Hemphill, senior markets editor for potash at ICIS Fertilizers.

ICL Group has launched an interactive online advisory forum for farmers and agronomists.

Following the publication of the 2020 nitrogen project listing by our sister magazine Nitrogen+Syngas, we profile a selection of leading nitrogen projects and their process licensors. Australia, Egypt, India, Nigeria and Russia have been key countries for new project developments.

West Texas Intermediate (WTI) forward oil prices for May dropped into negative territory during mid-April, on fears of lack of storage capacity to deal with the excess production. Forward prices for June were also nosing to equally unprecedentedly low levels.Elsewhere, Brent Crude spot prices dropped to $20/bbl, a fall of $50/bbl from the start of 2020.

Shell Global Solutions International BV (Shell) has awarded Worley two contracts for PT Pertamina EP Cepu’s (PEPC) new sulphuric acid plant in Indonesia. This plant is part of the Jambaran-Tiung Biru utilised gas field project for PEPC, which is a subsidiary of PT Pertamina-Indonesia’s state-owned energy company. Under the contracts, Worley will supply be supplying Chemetics’ cooled oxidation reactor (CORE) technology. This is the first time that CORE will be paired with Shell’s Cansolv SO2 capture technology. Worley gained the Chemetics technology as part of its Jacobs Energy, Chemicals and Resources acquisition last year. Cansolv controls the emissions and captures additional by-product value from the sulphur dioxide emitted from various refinery flue gas streams (such as cracking units, process heaters and boilers), sulphur plants and spent acid regeneration units. Sulphur dioxide can be recycled to the sulphur recovery unit to be produced as marketable sulphur or converted to sulphuric acid.

Tecnimont SpA has signed an EPC contract worth approximately e200 million with Gemlik Gübre Sanayii Anonim Sirketi for the construction of a new urea and urea ammonium nitrate (UAN) solutions plant at Gemlik, 125 km south of Istanbul. The plant will have a capacity of 1,640 t/d of granular urea and 500 t/d of UAN, and will be based on Stamicarbon urea technology, a fully owned subsidiary of the Maire Tecnimont group. The scope of work includes engineering, supply of all equipment and materials and construction and erection works. Project completion is planned within about three years of the contract beginning.

A consortium of Chinese buyers has agreed the first potash contract with the Belarusian Potash Company (BPC) since September 2018.

Three large-scale phosphoric acid plants constructed as part of the world-class Umm Wu’al project in Saudi Arabia are now fully operational. James Byrd of Worley (formerly Jacobs ECR) describes the execution of the project from basic engineering through to plant performance tests.