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Procurement News

Saipem Awarded Two New Offshore Contracts for Overall Amount of Approximately $850M

Saipem has been awarded two new offshore contracts, one for Engineering, Procurement, Construction and Installation (EPCI) project in the Black Sea and one for decommissioning activities in the North Sea. The overall value of the contracts amounts to approximately 850 million USD. The first contract has been assigned by Turkish Petroleum OTC for the second phase of Sakarya FEED and EPCI Project and entails the Engineering, Procurement, Construction and Installation of a 16” pipeline, 175 km long, at 2,200-meter water depth, in the Turkish Black Sea waters. The offshore operations are to begin in summer 2024 and will be conducted by Saipem’s flagship vessel Castorone. Saipem has recently completed with success the first phase of Sakarya Gas Field Development project, awarded by Turkish Petroleum OTC in 2021. The other contract has been assigned by EnQuest Heather Limited for the decommissioning of the existing Thistle A Platform, located in the UK sector of the North Sea, around 510 kilometres northeast of Aberdeen, in a water depth of 162 meters. Saipem’s activities entail the engineering, preparation, removal and disposal of the jacket and topsides, with possible extension to further subsea facilities. The activities will be carried out by the Saipem 7000, one of the largest semi-submersible heavy lifting vessels in the world. Fabrizio Botta, Saipem Chief Commercial Officer, commented: “These important awards demonstrate Saipems excellent competitive positioning in the Offshore Engineering & Construction market, a sector that is experiencing a full expansion momentum of which Saipem is ready to seize the opportunities. The contract awarded in the Black Sea is a confirmation of Saipem’s prominent positioning and of its long-standing relationships with clients. The North Sea contract, finally, is a further example of Saipems capabilities in a segment where the combination of innovative engineering, unique assets and safe operations is crucial". Turkey

NEOM awards over SAR 3bn Contracts for Port of NEOM

NEOM announced in a statement that, in line with NEOM’s strategy and the Saudi Ports Authority’s efforts to transform local ports into globally competitive logistics hubs, the management of Duba Port was transferred from national maritime regulator Mawani, to NEOM in 2022. Located in Oxagon, the home of advanced and clean industries in NEOM, the port, which is the primary seaport of entry to the northwest of Saudi Arabia, is renamed as Port of NEOM. Since the transfer, key capabilities have been expanded to match the rising volume of cargo coming into NEOM, including container and general cargo handling. Nadhmi Al Nasr, Chief Executive Officer, NEOM said: “The Port of NEOM will be pivotal to the continued commercial competitiveness, economic diversification and maritime trade ambitions of the Kingdom. Our vision is to build one of the world’s most technologically advanced, efficient and sustainable ports with the first fully integrated and automated supply chain and logistics network, and this first phase of development is a step towards realizing that. Located on the Red Sea, at the crossroads of global trading routes, the port will be a critical enabler for NEOM and a catalyst for broader economic development in the region. Our investment to date of over SAR 7.5 billion and our intention to open the first advanced terminal in 2025 demonstrates our commitment to the vision.” “The Port of NEOM will be a critical enabler to the overall build, operations and economic ambitions of NEOM – from the import of goods and materials during the development phase and as a new global port serving the region. This is particularly important as development accelerates and businesses across NEOM come on-stream,” said Sean Kelly, Managing Director – Port of NEOM. Bolstering connectivity to global markets, the first fixed call container service is being operated by CMA CGM – a global player in sea, air, land, and logistics solutions. With Port of NEOM added to their existing JEDDEX service, this is the first direct connection to and from NEOM through CMA CGM’s global network. In addition, the port sees multiple ad-hoc vessel calls with consignments carrying materials and goods that support the ongoing development across NEOM. Contracts for design, dredging and quay wall construction, and cargo handling equipment have been recently awa Saudi Arabia

Petrofac led JV selected for $1.5 bn EPC project in Algeria

Petrofac, leading a joint venture with petrochemical industry specialist, China Huanqiu Contracting & Engineering Corporation (HQC), announced in a statement that it has received notification of a conditional award by STEP Polymers SPA (100% Sonatrach subsidiary) to execute a significant petrochemical project in Algeria. The total contract value is approximately US$1.5 billion, with Petrofac’s share valued at over US$1 billion. The plant will be located at the Arzew Industrial Zone, west of Algiers. Covering the design and build of two major integrated processing units, the contract includes the delivery of a new propane dehydrogenation unit and polypropylene production unit, as well as associated utilities and infrastructure for the site. It is expected to produce 550,000 tons of polypropylene per year. Tareq Kawash, Petrofac’s Group Chief Executive, said: “We are proud to be supporting our customer to deliver this strategic project. Algeria is a core market for Petrofac and we are committed to supporting the long-term delivery of critical infrastructure as the country plays an increasingly important role as a major energy producer and moves into major petrochemical projects.” Elie Lahoud, Chief Operating Officer for Petrofac’s Engineering & Construction division, said:“The award of this major project builds on Petrofac’s 25-year track record of successfully supporting Algeria’s energy industry. As our client responds to the world’s increasing demand for petrochemical products, we are looking forward to developing our breadth of experience in-country, through the safe and timely delivery of this project.” This contract award forms part of the US$1.5 billion of opportunities described by Petrofac as being at preferred bidder stage in its December trading update, statement mentioned. Algeria

Sungrow to Supply Inverters for 2.1 GW Al Shuaibah Project in Saudi Arabia

Sungrow, the global leading inverter and energy storage system solution supplier, announced in a statement that it has signed a 2.1 GW contract with China Energy International Group Co., Ltd. to supply the Company’s featured 1+X Modular Inverter solutions to Al Shuaibah project in the western region of Saudi Arabia. The Al Shuaibah project with a total AC capacity of 2.66 GW, is the world’s largest PV project and will fuel the transition of Saudi Vision 2030. Al Shuaibah is ACWA Power’s sixth solar energy facility in Saudi Arabia. Badeel and ACWA Power will build, own, and operate Al Shuaibah facility and the electricity produced will be sold to Saudi Power Procurement Company (SPPC). China Energy International Group is engaged in the project as an EPC company. The project is expected to be completed in 2025 and power 350,000 homes annually. The project marks an important milestone for the National Renewable Energy Program (NREP) that was initiated by the Ministry of Education (MoE) and aims to develop 70% of the nation’s renewable energy through the Public Investment Fund (PIF) by 2030. Sungrow provides 240 units of its 1+X Modular Inverter solution and 10,000 units of its combiner box. The 1+X Modular Inverter is an innovation combining the advantages of both central and string inverters. As a result of the optimal IP65 high protection capability, the solution is resilient to sandy, dry, and windy conditions. Due to the smart forced air-cooling technology, the inverter solution can work stably in extremely high temperatures. In addition, the 1+X Modular Inverter features a 1.1 MW single unit as the minimum, and the maximum capacity can be expanded to 8.8 MW by combing eight units together. To meet their requirements, customers can choose from 1.1 MW to 8.8 MW, bringing a more flexible design for different block sizes and making the on-site O&M easier. Each module is designed with an independent MPPT, further improving the power generation capacity of the power plant. More importantly, the 1+X Modular Inverter is also equipped with intelligent string-level diagnosis to improve the power yield and real-time parallel arc detection to further protect system safety. Therefore, these advantages help lower the overall OPEX. Xiong Gaoxia, Al Shuaibah Project General Manager of China Energy International Group commented: “T Saudi Arabia

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