Top 30 EPC Contractors: 2011 edition
After a competitive 2010-2011, our guide to the cream of the EPC crop.
A lot has changed in the EPC contracting environment since our last list in June 2010.
This is reflected in the increased number of South Korean players in the market winning major contracts, a subject that - judging from the volume of comments we get at arabianoilandgas.com - offers a major challenge to the way other companies the region do business.
Some have suggested that the habit Korean firms have of low-balling on price, sub-contracting out to fellow South Korean firms and carrying out engineering work in Seoul will not prove to be a sucessful long-term business model.
Very interesting to see Saudi Aramco hold its April board meeting in Seoul then, don't you think?
THE TOP 30
1. Petrofac 2. Samsung Engineering 3. Saipem 4. MPCC 5. Technip 6. Mott MacDonald 7. Hyundai Engineering & Construction 8. Technicas Reunidas 9. Foster Wheeler 10. Jacobs Engineering
11. Marie Technimont 12. McDermott International 13. GS Engineering & Construction 14. KBR 15. SNC Lavalin 16. Topaz Energy & Marine 17. Al Jaber Energy Services 18. Kentz 19. Lamprell 20. Wood Group PSN
21. Drydocks World 22. MIS 23. Bechtel 24. SK Engineering 25. Petrojet 26. JGC 27. Daelim 28. Doosan Heavy Industries 29. Black Cat Engineering & Construction 30. Global Industries
EPC colossus continues regional domination after scooping big ticket Middle East contracts and a $3.4 billion mega-deal in Turkmenistan
Last year’s table-toppers Petrofac stay at number one in this year’s Oil & Gas Middle East Top 25 EPC Contractors Special Report on the back of $6 billion of new orders in 2010 in its Engineering & Construction business, including a company-record $3.4 billion EPC contract in the Caspian.
Middle East contract wins have continued after a recession-bucking 2009. As part of an interview with Oil & Gas Middle East (see page 24-25), Maroun Semaan, Group COO says the regional powerhouse predicts like-for-like net profit growth in 2011 of “at least 15%”, despite the EPC contracting environment remaining “highly competitive”.
The firm also won a varied portfolio of work throughout the region this year, with seven major projects now underway.
In March, Petrofac bagged a $600 million contract for gas sweetening facilities at Qatar Petroleum’s Massaieed and Dukhan industrial districts.
July and August saw two big wins in Kuwait: a $400 million contract for gas and oil pipelines from Mina Al Ahmadi to the Azzour and Shuaiba power stations, and a $430 million award for effluent water and sea water injection facilities, which will increase recovery in the Raudhatain and Sabriyah oil fields.
In Sharjah, Petrofac have been handed the keys to the Sajaa gas plant by the government in a $250 million operations and facility management deal.
The banner win for the year came in Turkmenistan, where under a $3.4 billion deal Petrofac will deliver a 10 billion cubic meters per annum gas processing plant along with the infrastructure and pipelines for the entire development on a lump sum turnkey (lstk) basis at South Yoloten for Turkmengas.
When complete, the South Yoloten field is expected to export 20 bcma of gas.
Semaan also said the business has “been very active” in Algeria, which paid off with the award of a $1.2 billion lstk contract to develop southern fields in the In Salah development.
Petrofac’s entry into Iraq has also been successful. The firm recently announced they beat the pack to win a competitive tender of a $240 million deal from Shell for the development of the southern Majnoon field.
In Sharjah, Petrofac was awarded a project by the Government of Sharjah to take over the O&M of the Sajaa gas plant in a $250 million deal.
2. Samsung Engineering
South Korean giant strides ahead
Samsung Engineering posted record-breaking year-end results in 2010 for the fifth year running, on the back of several high-value contracts awarded by Saudi Aramco, and diversification from hydrocarbon to industrial and institutional projects.
The Korean EPC giant, which has it's regional base in Jubail Industrial City, Saudi Arabia, and a marketing office in Abu Dhabi, posted year-end revenue in 2010 of US $4.87 billion, a massive increase of 31.3% over 2009.
The cornerstone of Samsung’s development in the Middle East has been it's relationship with Saudi Aramco, Sabic and other national companies, whcih it developed in the late 1990's. The company then worked its magic with ADNOC, with which it is developing a profitable long-term relationship.
In 2010, this yielded the Shah sour gas development project ($1.5 billion), and two $1.25 billion contracts - in concert with Marie Technimont - for two polyethanol and two polypropylene units, and a $400 million contract for a 350 000 tonne per year low density polyethylene unit.
Samsung now looks to become a long-term partner of ADNOC. But hydrocarbon projects only tell part of the story. CEO Ki-Seok Park has emphasised the firm’s intention to diversify.
Samsung signed a $300 million steel plant engineering contract in Bahrain steel plant contract with SULB, a joint venture between Bahrain’s Foulath and Japan’s Yamato, invested by the Gulf Investment Corporation.
Samsung’s growth and prudence have also been rewarded in the credit markets. The firm was awarded an AA- credit rating by the Korean Rating credit ratings agency in April 2010, the highest of any construction company. The firm was one of only three Korean companies to feature in Forbes Asia’s 2010 ‘Fabulous 50’ awards.
Samsung Engineering has built on proven successes in 2010 with a huge increase in new orders for 2011. Over 39% of targeted new orders for 2011 were already been secured by May 2011.
These include the $2.7 billion contract from Saudi Aramco for the Shayba Natural Gas Liquid project, slated to produce 750 000 barrels per day when operational in 2012.
Saipem raked in $5 billion worth of KSA project work in 2010, as well as winning key partner status in the Shah Field Development in Abu Dhbai
40 000-strong remote and deepwater specialist Saipem had another excellent year in key Middle East markets.
In March this year the firm was awarded new E&C Offshore contracts worth in excess of $2.2 billion by Saudi Aramco for work on the giant Al Wasit Gas Program, encompassing the offshore development of the Arabiyah and Hasbah fields 150 kilometres northeast of Jubail industrial city.
The developed fields will contain 12 wellhead platforms, 2 tie-in platforms and 1 injection platform.
In December Saipem scooped up two new onshore contracts with a total value in excess of US$1.2 billion in North Kuwait. Kharafi National awarded Saipem the EPC contract for the Early Production Facility Project for the Jurassic field.
The contract encompasses the engineering, procurement, construction and commissioning of the Early Production Facilities, which will have an oil and gas treatment capacity of 150.000 barrels per day in this first phase of development, and of the gathering system and pipelines, next to a sulphur granulation plant.
NPCC eyeing expansion in India and West African markets
National Petroleum Construction Company, a government-owned EPC specialist, has had a remarkable year, netting record profit of $249 million in the financial year 2010, up almost 40% on 2009.
According to Hussain Jessem Al Nuwais, Chairman of NPCC, a consultancy firm is currently carrying out a business study to advise NPCC on its plans venture into the markets of Caspian Sea and the West African countries in order to expand its engineering, procurement and construction activities.
“Within a couple of months, we are expecting to receive a business strategy as to how to go about it,” said Hussain Jessem Al Nuwais, Chairman of NPCC, on the sidelines of the company’s annual HSE and Quality day.
More than 50 per cent of NPCC’s revenues were earned outside Abu Dhabi, from hydrocarbon projects in Saudi Arabia, India and Qatar last year.
NPCC has strong ambitions to establish a proper base in both the Caspian and West Africa. NPCC bagged two major contracts in the offshore platform constructions last year, but the company is shifting its ambitions to onshore construction, where the competition is tough.
In May last year ADMA-OPCO awarded a 30-month contract to NPCC to carry out the EPC works for the Zakum Central Super Complex (ZCSC) Demothballing Project. The contract is valued at $350m.
“NPCC has demonstrated its competitive edge in terms of pricing, schedule and willingness to do the project,” said Ali Al-Jarwan, ADMA-OPCO general manager.
The ZCSC Demothballing Project is part of overall ADMA Lower Zakum 100 MBD programme that aims to increase oil production capacity from the Zakum Field from 2012.
ADMA-OPCO is de-mothballing and re-commissioning the production facilities at Zakum after these were shutdown and mothballed in the early 1980’s.
French firm wins diverse mix of upstream and downstream contracts
The French subsea specialist has been operating tin the region since 1970, and won several engineering contracts in petrochemical, refining and fertiliser sectors in the Middle East in 2010.
New orders in 2010 included a $400 million offshore development contract from Khafji Joint Operations - the joint venture between Aramco Gulf Operations and Kuwait Gulf Oil Company - for the Khafji Crude-Related Offshore Projects in the neutral zone between the Kingdom of Saudi Arabia and Kuwait.
Project management for he contract will be run out of Abu Dhabi, one of Technip’s smaller regional hubs that, thanks to the upsurge in the firm’s regional EPC market activity, the 23,000-strong Paris-based firm will be upgrading to a fully fledged EPC operating centre in 2011.
As project leader in a consortium with Hawk International, Technip also began work on a lump sum turnkey (LSTK) contract from Total E&P Yemen for the Kharir Power Plant Project. The Plant will be in East Shabwa, in south Yemen.
The firm is also rehabilitating the decrepit Algiers refinery under a $908 million LSTK contract from Sonatrach. When Technip are finished, the Algiers refinery will produce 900,000 more oil than it does today.
6. Mott MacDonald
Global contractor eyes Iraq expansion
Mott MacDonald have had a great year in 2010, netting upstream energy contracts with a total capital cost of $8.8 billion.
The 14,000-strong global firm has built on a strong presence in the UAE with expansion into Iraq and the wider Middle East.
Mott MacDonald’s regional strength continues, with projects including a systems upgrade for the Fahud oil field for PDO Oman, EPCM services for ZADCO, Abu Dhabi together with a raft of infrastructural projects there, and a pipeline project which aims to connect three refineries in the UAE.
Charles Ellinas, Managing Director of Mott MacDonald’s global Oil, Gas & Petrochemical s business said “the last year has been really good for us”.
The firm is establishing a base in Basra, Iraq and is investing heavily there, after their LNG feasibility study for Shell.
7. Hyundai Engineering & Construction
Another record year for South Korean firm
After a stint in bankruptcy and seven years in a debt rehabilitation program, the company has bounced back and emerged as one of South Korea’s largest construction and civil engineering companies.
After a record year for sales (9,278.6 billion KRW, $8.5 billion, up 27.6%) and net earnings (455.8 billion KRW, $4.1 billion, up 22%) in 2009, Hyundai Engineering & Construction continued its advance into large-scale Middle East projects.
CEO Kim Joong-Kyum stresses the need for continued innovation and pride in the company, and as part of a push , the company has become the first construction firm in South Korea to sign the United Nations Global Compact on sustainable business growth.
The Korean giant’s signature orders in 2010 were away from upstream oil and gas, hence their lower ranking than their headline numbers would suggest.
The firm was awarded a $936 million contract for Utilities and Off-site facilities for Borouge 3 in Ruwais, Abu Dhabi, and has been appointed the single contractor for a $1.45 billion pipeline bringing oil and gas from the Mina al-Ahmadi refinery in Kuwait to power plants in Sabiya and Doha.
8. Technicas Reunidas
This Spanish-based general contractor has had a stellar year, building an increasing portfolio in the Middle East off the back of its first major project in the region, won from ADNOC in in 2009.
At the end of December 2010, the backlog of Tecnicas Reunidas (TR) stood at €5,73 billion ($8.1 billion), a growth rate of 19% compared to the end of 2009.
New orders for the year reached €3,6 billion ($5.12 billion), a company record, with several wins in the Middle East.
Technicas Reunidas wona $770 million contract for a new refinery at Yanbu for Saudi Aramco, which involves the construction of a mammoth 14,000 bpd coker unit.
In Qatar, TR won a FEED contract for the diesel hydrotreater project at the Ras Laffan Refinery for Laffan Refinery Company Limited.
July 2010 saw the Madrid-headquartered firm sign up to the $9 billion Saudi Aramco Manifa oilfield project with a host of IOCs.
Manifa is slated to produce 900,000 bpd of oil, 120 million scfd of sour gas, 50,000 bpd condensate and 950,000 bpd of produced water on completion.
9. Foster Wheeler
New orders from Iraq and Egypt
US EPC giant Foster Wheeler is still living in the shadow of its 2009 results, posting first quarter earnings per share of $0.18 for the first quarter of 2011 against $0.56 at the same time in 2010.
Interim CEO Umberto della Sala expects the comany’s books for 2011 to show “marked improvement” over 2010 as revenues from recent new orders come through. New contracts won in 2010 include two major projects in Iraq.
The first is a FEED contract for the new Nassiya refining plant in Southern Iraq for an undisclosed amount, with the facility expected to process 300,000 barrels per day on completion.
The second is project management consultancy for Iraq’s South Oil Company for the construction of two onshore and offshore pipelines and a refining plant, which together are slated to increase Basra’s export capacity from its current output of 1.8 million barrels per day to 3.5 million barrels per day by 2014.
Other signs may be encouraging. New orders booked in the first quarter of 2010 were $562 million against $494 million at the same time in 2009.
In Saudi Arabia, the company will expand Gulf Farabi’s linear alkyl benzene plant (LAB) at Al-Jubail under a $350 million contract.
The new plant will have a production capacity of 100,000 tonnes per annum of LAB.
The company’s Houston operation won a project management consultancy contract from Carbon Holdings for a petrochemical complex in Ain Sokhna, Egypt which on completion will process 1.35 million tons per year of polyethylene.
First quarter 2011 results show profits of $23 million against $72 million at the same time in 2010, and new orders for the quarter down to $381 million from $418 million in Q1 2010.
This is evidence that, even for EPC giants like Foster Wheeler, large contracts are harder – and taking longer – to win. Sala expects 2011 to be a “transition year” for the company.
10. Jacobs Engineering
Contract wins from Saudi
California-based firm is one of the largest technical services companies in the world, boasting 160 offices in more than 20 countries.
Overall 2010 proved a tougher year for Jacobs, as revenue fell 13.2% to $9.9 billion and net income fell 38.7% to $245 million (from $11.4 billion and $400 million respectively in 2009).
However, the company did rack up significant new orders in the region in 2010. Saudi Aramco charged Jacobs with the development of a basic engineering package for four sulfur recovery units at the Wait Gas development project, each with an expected production capacity of 1 200 tonnes per day.
Wasit will see production and processing of up to 2.5 billion standard cubic feet per day of sour gas from the Aribiyah and Hasbah offshore fields.
Jacobs started 2011 with a FEED contract from Saudi Luberef, the only producer of lubricating oils in Saudi Arabia, for the US$1 billion expansion of Luburef’s Yanbu refinery.
The refinery aims to be the only one in the region producing type-III automotive base oil.
11. Marie Technimont
Big in Borouge
The Italian conglomerate added three major projects to its portfolio in 2010. In July it won a contract from the state-backed Kuwait National Petroleum Company for the construction of a LSTK Acid-Gas Removal Plant for an undisclosed amount.
Tecnimont also won two lump-sum turnkey contracts, the first as a $1.65 billion joint venture with Austrian firm Borealis for the construction of the Borouge polyolefin plant for ADNOC, the second being a $400 million construction of a gas refinery at Mina Al-Ahmadi, slated to process up to 230 million cubic feet of gas per day.
Marie Technimont continued to construct three polyolefins units under its $1.855 billion Borouge 2 expansion contract.
12. McDermott International
Offshore work sees Middle East generate a chunk of $2 billion revenues
In 2010 the Houston-based firm span off its U.S.-based government contracting services company Babcock & Wilcox and its related other domestic companies, to zero in on oil & gas services.
To reflect this change, the firm changed its name from J Ray McDermott. McDermott has benefitted from this renewed focus with impressive regional contract wins, including the $350 million upgrade and enhancement of a water injection system for Abu Dhabi’s ADMA-OPCO in the Zakum field.
McDermott won the contract for the Offshore Maintain Potential Project at the Abu Safah, Safaniya and Berri fields for Saudi Aramco.
McDermott subsidiaries in the Middle East and Caspian region bagged deals for a range of offshore projects as part of their $2 billion of bookings in the final quarter of 2010.
13. GS Engineering & Construction
Board eyes Saudi move on sound profit
In September 2010 the South Korean contractor won a $623 million pipeline contract from Takreer – a subsidiary of the Abu Dhabi National Oil Company - which involves over 900 km of pipes being laid over 45 months. GS has already acted on several projects for Takreer, including Ruwais Refinery, Green Diesel, Ruwais 4th NGL project.
In August 2010 GS heard that, after a delay of a year due to a lack of financing, a $2.2 billion EPC contract for a supersized hydrocracker plant in Cairo, Egypt can now proceed.
In Oman, GS will construct the Oman Barka III and Sohar II independent power plants under a $1.3 billion deal from Al Suwadi Power Company SAOC and Al Batinah Power Company SAOC. GS will deliver the EPC project in concert with Siemens over 34 months.
Since 2008, GS has won $7 billion worth of projects from the United Arab Emirates, the world’s third-largest crude exporter.
The joint CEOs of GS Engineering & Construction are now evaluationing a move from Abu Dhabi to Saudi, and with other South Korean firms dealing with full orders books, see opportunities in the region.
14. Kellogg Brown & Root
Egypt, KSA strong for KBR
2010 was a banner year for KBR’s downstream business, as downstream revenue almst doubled it’s contribution to the company’s income over 2009.
The Houston firm completed the world-beating Saudi Kayane ethylene plant, which has a capacity of 1.35 million tons per year.
In August KBR won its second contract from BP, at the onshore terminal and export pipelines for BP’s 1 billion standard cubic feet West Nile Delta Development in Egypt.
KBR was awarded two contracts by Iraq’s South Refineries Company, the largest of which includes licensing and basic engineering services for the construction of Fluid Catalytic Cracking and Solvent Deasphalting units at the planned grassroots Maissan refinery in Maissan.
In early 2011KBR bagged FEED and PMS roles at the 400,000 bpd Jazan grassroots refinery in Saudi Arabia.
15. SNC Lavalin
Solid year in oil and gas for the Quebec-based engineers
Canadian multi-platform engineers SNC Lavalin posted revenue of $1.6 billion in the first quarter of 2011, a 25.1% increase in profits over the previous year.
Lavalin’s backlog also looks healthy, with $9.4 billion on the books in March compared with $8.6 billion at the end of March 2010.
The firm has been selected, together with its local Saudi Arabian 50/50 joint venture partner, The Zuhair Fayez Partnership, by Saudi Aramco, to perform general engineering and project management services (GES+) under a five-year reimbursable contract.
Under the contract, SNC-Lavalin and The Zuhair Fayez Partnership will perform front-end engineering and design and select detailed engineering, as well as project management services to support the execution of Saudi Aramco’s capital programme.
In the summer of last year SNC-Lavalin was awarded an EPC contract by Jordan Phosphate Mines Co. (JPMC) to upgrade and increase the capacity of two sulphuric acid plants in Aqaba, Jordan. SNC-Lavalin’s revenues from the project will be approximately US$81 million.
Work has begun and the project is scheduled for completion in 18 months.
16. Topaz Energy & Marine
Breakthrough year for EPC work
Topaz, a Middle East and Caspian focused oilfield services company, moves up our rankings this year after another set of solid financial results resulting from it’s prudent mix of short and long term contracts.
The 5,200-strong Dubai firm operates one of the largest offshore support vessel owner-operator businesses in the world.
CEO Fazel Falzelbhouy oversaw record net profit in 2010 of $70 million on $408 million revenue, improved – and record – profitability on 2009.
In October Topaz’s engineering business bagged a $100 million EPC contract for the Phase IV Oil Storage Terminal for GPSChemoil in Fujairah, one of the largest EPC tank terminal projects awarded to Topaz Engineering in terms of project value and terminal size.
In January Topaz announced they are sending the ‘Topaz Shaheen’ to serve as a standby support vessel for Maersk Oil Qatar in the Al Shaheen Field.
Topaz recently the ‘Caspian Protector’ to its fleet. The vessel will be deployed in Azerbaijan in support of a 10-year $225 million BP contract won in 2008.
17. Al Jaber Energy Services
Early works gig keeps on giving for UAE firm
Al Jaber stays in our top 25 as a result of their successful conversion of a massive Early Works Package (EWP) for Gasco into a $614 million EPC contract for a new greenfield Ruwais Sulphur Handling Terminal-2 plant located in the Ruwais industrial area approximately 165 km west southwest of Abu Dhabi City, and associated pipelines.
The award of the EWP, given to Al Jaber in consortium with Italy’s Techint, has been hailed by the industry as signaling the beginning of what will ultimately be a new benchmark for the gas processing and sulphur recovery industries worldwide. It is part of the first sour gas facility attempted in the UAE.
Challenges include transporting 10 000 tonnes of sulphur per day from the main plant in the large dunes 180 km south east of Abu Dhabi to the new sulfur terminal.
The Abu Dhabi based company clearly proved they could meet the challenges presented, and have now begun work under the EPC contract on a lump-sum turnkey basis, due for completion at the end of 2013.
The project is being executed in parallel with the Shah-Habshan Ruwais Etihad Rail project, which will transport granulated sulphur from the Shah and Habshan stations to the Ruwais sulphur export terminal to replace the current transportation of liquid sulphur via trucks to Ruwais, in a bid to improve safety, reliability and reduce environmental cost.
42% of Irish firm’s revenues now flow from Middle East
Engineering firm Kentz reported a 52% rise in full-year profit driven along significantly by its Middle Eastern engineering activities.
Kentz, which gets about 42% of its revenue from the Middle East, said there had been no material impact on any of its projects due to the political unrest in the region.
Pre-tax profit rose to $67.5m in 2010 from $44.5m the previous year. In January this year Kentx won an EPC contract from Abu Dhabi Gas Industries (GASCO). The company will replace the existing emergency shutdown system and associated field instrumentation at two of GASCO’s plants.
Kentz chief executive, Dr Hugh O’Donnell, said that the company’s board was delighted to have been awarded the new project.
“The nature and criticality of this brownfield project has traditionally been a core competency of Kentz,” he said.
The project will take about 30 months to complete. Kentz has been operating in Abu Dhabi for nearly 30 years and has previously worked with GASCO on a number of projects. The value of Kentz’s work backlog, at the end of 2010, amounted to $1.6bn.
Aquisition of MIS will see firm rocket up next year’s rankings
Lamprell has played a prominent role in the development of the offshore industry in the Arabian Gulf for over 30 years, and more recently providing specialised services to the onshore and offshore oil and gas industry.
Lamprell’s three primary facilities are in Port Khalid and the Hamriyah Free Zone, both which are in the Sharjah, and in the Jebel Ali Free Zone, in Dubai.
Lamprell has grown strongly over recent years, driven by buoyant conditions in the oil and gas industry and the increase in capacity with the opening of the Hamriyah facility in 2007.
The company is enhancing its offerings for the fabrication, construction and outfitting of accommodation units/ modules. Engineering design services and solutions.
Its core business also covers the design, engineering, procurement, fabrication, loadout and seafastening of offshore oil and gas structures including turrets, mooring systems, MOPU’s, FPSO topside modules, offshore fixed platforms. Lamprell made an offer to buy neighbouring fabrication and growing EPC firm MIS in May.
20. Wood Group PSN
Regional presence rises on merger and $800 million joint venture
Wood Group PSN breaks into our top 25 as a result of its first significant contract win in Middle East with its joint venture with Athens-based Consolidated Contractors Company (CCC), and its recent $955 million acquisition of fellow Aberdeen contractor Production Services Network (PSN).
Wood Group’s confirmed its acquisition of PSN creates the world’s leading brownfield service provider with annual revenues of around US$3 billion and a 23,000 strong workforce operating in more than 35 countries.
In March this year the firm won a five-year general engineering services contract with Aramco, establishing a long-term framework for the supply of EPC services to support the execution of onshore and offshore oil & gas projects within the Kingdom.
In December 2010 Petroleum Development Oman awarded Wood Group’s CCC joint venture an $800 million, seven-year engineering and maintenance services contract throughout the country.
In a strategic move, the firm previously sold its well support services arm to GE.
21. Drydocks World
Successful expansion into EPC market
The region’s largest and busiest drydock has been hugely successful in the offshore and FPSO conversion business., and is now looking to harness its global yards to acquire more large-scale project and EPC business.
In May the company signed a contract with Mumbai-based construction group, Afcons Infrastructure, to provide detail engineering, procurement, construction and delivery of a Self Elevating Platform AF SEP Samrat.
The 45metre long flat bottom pontoon barge, which will be built at the Dubai facility, can be jacked up with four spuds and a jacking system with an elevated weight of 2928 tonnes approximately.
The vessel will be equipped with a main crane and other equipment including six mooring winches, three gensets, jacking systems, power packs, pumps and other miscellaneous equipment.
“We are focusing our strategy for the future to a large extent in the sectors of marine construction and support industries and the oil and gas sector,” said Khamis Juma Buamim, Chairman of Drydocks.
Record EPC strength in year before Lamprell acquisition
MIS is best-known for its jackup build and refurbishment business, though its EPC capabilities have seen it grow that segment of its business from 7% of its revenue 2009 to 11% in 2010.
Though the majority of that work is in the Northern Emirates and parts of Dubai,and the company has used its expertise to break into new markets.
MIS’s management have emphasised the strategic importance of EPC in the oil & gas upstream sector to the business with moves to support MIS’s growth targets for EPC.
This year the firm appointed Chris Parker MBE, as Executive Vice President for MIS Iraq, and acquired Litwin, an Abu Dhabi EPC contractor, to help its entry into the market.
The acquisition is paying off, with Litwin scooping contracts for GASCO and Borouge, worth a total of $5 million. One of MIS’ biggest EPC Projects to date is the HFO facility in Qatar. The firm’s emphasis is now on the full EPC projects, FEED services, focusing on offshore platforms and onshore processing plants.
Many local and regional upstream projects and draws on its extensive expertise in fabrication with the addition of the engineering capabilities.
Working on backlog
The third-largest privately-owned company in the USA moves down our rankings as upstream awards proved hard to come by in 2010-2011.
Despite this, Bechtel remains an EPC powerhouse with an impressive regional backlog, reporting $30.8 billion in revenue in 2010 and total new orders booked globally of $21.3 billion.
Bechtel has worked on various projects across the MIddle East for all the major NOCs. The firm completed its three major gas processing projects in the region last year at Kursaniyah, KSA and the Hadshan and Asab plants in Abu Dhabi.
Bechtel is the project manager of the massive Borouge 3 petrochemical expansion project in Abu Dhabi. It will also work on the region's first nuclear power plant.
24. SK Engineering
Boosted by Yanbu, Wasit
Seoul-based SK Engineering which won several sizeable contracts in 2010 and early 2011.
In July the firm won a one of seven contracts given by Saudi Aramco at the Yanbu Export Refinery project, for the construction of a crude unit.
The firm is working under a $427 million project at the 400,000 bpd export refinery facility in Jubail, Saudi Arabia, and the $9.6 billion expansion of the Ruwais refinery in Abu Dhabi, after which Takreer hopes to see its output more than double current capacity of crude oil and condensate. SK’s slice of the deal was valued at $2.12 billion.
In January Saudi Aramco selected SK for two of the four LSTK contracts on offer at the Wasit Gas Program onshore facilities.
The first is for the four huge sulfur recovery units (SRU) and utilities facilities at Wasit, which includes sulfur loading facilities, and related electrical and control systems.
The second was for NGL fractionation, which includes NGL inlet facilities, NGL fractionation facilities, product treating and storage, LT flare and control systems.
SK also won a $34 million contract for communications systems between oil refineries and petrochemical plants in the Dukhan oilfield located 95 kilometres to the west of Doha in Qatar.
Egyptian co nets first major tender win in UAE
Petrojet – which boasts its own football team in the Egyptian Premier League – break into Oil & Gas Middle East’s top division this year, as a result of its first contract win in the UAE.
The firm has a track record with competitive tenders, previously low-bidding for large projects in Qatar and Algeria. Petrojet is to build nine gas pipelines for GASCO Abu Dhabi from the Habshan 5 Gas Processing Plant for an undisclosed amount. In addition, Petrojet will work on water pipelines around the Habshan area.
The company is also continuing its EPC contract for 230 km of 16” and 18” gas pipelines in Oman, from Hubara to Marmul and from Marmul to Harweel. The Marmul to Harweer project includes the conversion of the existing 84 km Marmul to Nimr crude oil pipeline to a gas pipeline.
Revenues and profits up on key Ras Laffan contracts Japanese EPC firm JGC is currently executing projects in Saudi Arabia, UAE, Algeria. Its stand-out project, the Pearl GTL in Ras Laffan, Qatar, which started processing sour gas in March this year.
Work continues on the the Habshan 5 processing facility, sulphur recovery units and NGL recovery unit, awarded under a $4.7 billion joint venture with Maire Tecnimont.
The firm, which operates regionally out of Saudi, is also working on two sulphur dioxide reducing units at the Sasref refinery on the Kingdom’s Gulf coast that on completion will dramatically reduce the facility’s environmental impact.
In November, JGC announced it will be performing EPC and pre-commissioning work for new water treatment facilities to treat 170 000 barrels per day of produced water at the Phase 3 (Onshore) Project run by Khafji Joint Operations in the Saudi-Kuwait neutral zone.
In January The Tokyo-listed firm announced it won the multibillion dollar lump-sum turnkey EPC contract for new gas processing facilities for the Barzan Onshore Project in Ras Laffan, Qatar.
JGC also recently won a $213 million deal from the Sonatrach, BP, Statoil Association for the optimisation of the In Ain Amenas gas production.
The scope of work comprises the construction of two compression lines with a capacity of 29.7 million m3 per day. JGC CEO and President saw net profit for 2010 of $1 billion on revenues of $5.53 billion, an increase from $0.74 billion and $5.12 billion respectively.
Competing in Kuwait
Daelim is another South Korean contractor breaking into our roster this year on the back of strong performance by their core Engineering & Construction and Petrochemical divisions.
The 72 year old firm has boosted staff numbers from 4,800 to c.6,000 in the last two years, with services covering gas, petroleum refining, chemical and petrochemical, power and energy plants, building and housing, civil works, and industrial facilities. The firm is also developing its value-added products business.
Daelim is South Korea’s fifth-largest EPC contractor, and its increasing profile is the result of several major contract wins in 2010, including two out of the seven contracts awarded by Saudi Aramco for the 400,000 barrel per day Yanbu Export Refinery.
Daelim are to build a gasoline unit and a hydrocracker at the mammoth plant for an undisclosed amount.
In September 2010 Daelim finally signed a long-awaited $893 million EPC contract with Kuwait National Petroleum Company for the LPG TRAIN-4 Gas Pipeline Project at the Mina Al Ahmadi refinery complex south of Kuwait City.
In addition to the 850 million cubic feet per day gas pipeline, Daelim will build gas plants which are able to produce ethane, propane and butane by treating about 805 MMSCFD gases and 106.3 MBPD condensates.
The Seoul-based company has not always got its way, losing out in January 2010 to Taiwanese firm CTCI for a major amines plant for Saudi Kayan Petrochemical Co.
This was despite being the favorite to win the contract, having won the associated low density polyethylene project at the same site. Nevertheless Daelim goes from strength to strength in the GCC.
28. Doosan Heavy Industries
Running hot in Rabigh 6
Founded in 1896, South Korean powerhouse Doosan is one of the oldest EPC contractors in our list. providing services including engineering design, basic material fabrication, equipment installation, commissioning, and facility construction.
While it has been a quiet year for Doosan in terms of upstream orders, the company has made increasing inroads into large-scale infrastructure projects, particularly in Saudi Arabia and the UAE.
An example is the EPC contract win for the Rabigh 6 project. This involves Phase-6 expansion of the thermal power plant in
the Rabigh region, some 150 km north of Jedda, Saudi Arabia’s second largest city. The project, worth US$ 3.44 billion, constitutes the largest single project for power plant construction that a Korean company has ever secured overseas. The plant once operational will generate 2,800 megawatts.
It is not only for the scale of orders in 2010 that Doosan demands attention. The Company has achieved 20 million safe man hours of accident-free operation during the project through last year.
Gyeong-ho Park, executive managing director “illustrates the excellence of Doosan Heavy Industries and Construction’s accident-free, safety system at its overseas project sites.”
Doosan diversifies from hydrocarbon energy, announced on June 30 that it had signed a contract worth US$ 4 billion as part of a South Korean consortium with Korea Electric Power Corp.
(KEPCO) to supply the main facilities of nuclear power plants to be built in the United Arab Emirates.
Ras Az Zawr seawater desalination project to be executed in. Saudi . The project is worth US$ 1.46 billion, making it the largest desalination project in size in the world.
So while Doosan has been quiet on the upstream side last year, their next project is likely to be a blockbuster.
29. Black Cat Engineering & Construction
Oil field projects at Dukhan keep Black Cat in big leagues
Qatar’s home-grown Black Cat Engineering and Construction (BCEC) goes from strength to strength, positioning itself to capture much of the high-end EPC and subcontractor work in the Gulf state and beyond in the coming months and years.
The company has ambitions to expand its reach, including in the UAE and Iraq and is working on establishing itself as a skilled engineering contractor in these markets.
BCEC has been involved with two on-going projects at Qatar’s Dukhan oil fields for Qatar Petroleum.
The company is supplying sweet fuel gas and producing water treatment and injection at degassing and PWI stations. These projects will be completed in the first quarter of 2012.
One of the key attributes that distinguishes BCEC from other local players is Black Cat’s considerable in-house engineering capability; With over 110 engineers of every discipline, BCEC has the ability to undertake complex projects in very tight and challenging time scales.
BCEC has put in place its own type of work processes to handle the complex jobs they are undertaking, and the firm sees potential for the way they do things.
The board of firm’s holding company, Qipco Holding, recognizes the tremendous potential for BCEC’s growth and backs the firm’s wishes to expand their offering to markets further afield.
“Participating in Qatar’s economic development is Black Cat’s core philosophy. Our driving principal is that Black Cat’s clients are our long term business partners - they share our vision of supporting the phenomenal economic growth of the country,” said Adnan Al-Mubarak, general manager of Black Cat Engineering & Construction.
“We have developed Black Cat Engineering into a dynamic, knowledge-based operation with the capabilities of training and cultivating the human capital resources in Qatar. Our goal is to establish ourselves as an integral pillar in the transformation of Qatar into a global energy hub” he added.
30. Global Industries
New pipelaying vessel leads to contracts
Global Industries is a provider of offshore construction, engineering, project management and support services including pipeline construction, platform installation and removal, deepwater/SURF installations, IRM, and diving to the oil and gas industry worldwide.
In October the firm’s wholly owned subsidiary, Global Offshore International, won a contract from Dubai Petroleum Establishment (DPE) to perform the Al Jalilah Platform and Pipelines EPC project.
The project, which was slated for completion in the first half of 2011, covers the design, construction and installation of a basic, unmanned offshore wellhead platform, one 27 km x 6″ gas lift pipeline, and one 27 km x 12″ oil production pipeline to one of Dubai Petroleum’s existing offshore processing facilities.
Global intends to use its newly built Global 1200 deepwater derrick pipelay vessel for the project.
John Reed, Global’s Chief Executive Officer, stated, “we continue to see many opportunities for the broad capabilities of this unique vessel. This project award also represents a significant step for Global as we work to position ourselves as a significant player in the Middle East, a crucial oil and gas market. We look forward to working for Dubai Petroleum on this project and many more in the future.”