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CONTENTS

GCC Concerned as Gas Shortages Worsen .......................................................................................... 4

AMB-Hertel Bags Takreer Ruwais Refinery Deal ........................................................................................... 4
Kuwait Keeps Its Oil Promise ......................................................................................................................... 5
SEC Picks Contractors for Qurayyah Power Project .................................................................................... 6
Are LNG Investors Worried? ............................................................................................................................ 7
GCC Contracts to Touch USD 213 bn by 2011 end ........................................................................................ 7
Kuwait Inks Mina Al Ahmadi Refinery Revamp Deal ..................................................................................... 8
Problems Galore in Awarding Contracts ....................................................................................................... 9
The Rise of The Umbilicals ............................................................................................................................... 16
Tenders GCC ....................................................................................................................................................... 19
Saudi Aramco Developing Gas Facilities at Wasit ......................................................................................... 21
 GCC
GCC Concerned as Gas shortages Worsen
A lthough the Gulf Cooperation Council
(GCC) nations are one of the world's
most gas-rich areas, it still suffers from
shortages, and the situation is worsening
as gas is subsidized here. Of the six Gulf
Cooperation Council (GCC) countries,
Qatar is the only net gas exporter. But
Kuwait, which is separated from Qatar by
the Saudi Arabian coastline and the sea,
cannot pipe gas in from Qatar. Saudi
Arabia would not allow an extension of the
Dolphin pipeline through its territory. GCC
holds around 24 pc of global gas reserves,
and demand is constantly rising. Though
the global economic crisis has reduced
gas demand in some regions of the world,
in GCC gas demand has outstripped
production. GCC economies are growing
at a rate of around 7 pc a year, and
demand for both gas and electricity is
keeping pace with GDP growth and
economic diversification.
The United Arab Emirates (UAE) is a case
in point. Abu Dhabi is the richest of the
seven emirates in hydrocarbon reserves,
providing 90 pc of UAE's gas production.
The emirate produces 6 bn cubic feet a
day (cf/d), of which 2bn cf/d is re-injected
into the oilfields to maintain pressure;
0.6bn-0.7bn cf/d is exported as LNG to the
Asia-Pacific region under long-term
contracts; and the rest is distributed as
sales gas.
At the same time the Emirate imports 2bn
cf/d from Qatar through the Dolphin
pipeline and faces a gas-supply deficit of 2
bn cf/d during summer.
Qatar exports gas through the Dolphin
pipeline to the UAE and Oman, but the
prices are low. Gulf States are willing to
pay rates of only up to USD 5/m British
thermal units (Btu), and recent contracts
featured prices of around USD 1.5/m Btu.
Qatar can secure USD 10/m Btu for its
AMB-Hertel bags Takreer Ruwais Refinery deal
EPC contractor Samsung Engineering has awarded a sub contract for the USD 2.7 billion Takreer’s Ruwais Refinery expansion
project at Ruwais to AMB-Hertel, a joint venture of the Al Masaood Group and Hertel. Under the 2-year contract, AMB-Hertel will
develop desalination and waste water treatment areas as well as provide insulation and scaffolding services to link the new areas
with the existing Ruwais Refinery. The project is expected to be completed by 2014.
4 Energy Outlook
LNG in the Asia-Pacific market. So,
understandably, it is reluctant to sell more
gas than it already does to its neighbours.
In UAE, gas is sold to customers at highly
subsidised prices. Production costs of
deep and mildly sour gas projects in the
Gulf are between USD 5-6/m Btu, and
domestic sales prices range from USD
0.75-2.00/m Btu. As a result of these
subsidies and the already big demand for
gas from electricity and water-producing
companies, gas use is inefficient, and
demand is high and rising.
Sharjah, the emirate east of Dubai, saw a
rise in gas consumption of more than 30
pc between 2008 and 2009. This increase
represents 25,000 new gas connections
in a single year. It is estimated that the
UAE will need a further 5bn cf/d for extra
power-generating capacity by 2019.
Kuwait, like other Gulf states, has been
struggling to find enough gas to feed its
growing electricity demand. In June, the
country's grid reached 99 pc of its 11 GW
generating capacity, resulting in fires in
transformers and widespread blackouts.
Being a hub LNG tankers leaving Abu
Dhabi with cargoes for Japan and South
Korea and passing tankers were
redirected from Europe for delivery to
Kuwait. In Kuwait, the residential market
for electricity accounts for around 60 pc of
generating capacity and, after subsidy,
the government charges households
USD 0.07 a KWH. Added to that, many
households do not pay their bills and are
rarely penalized, increasing the cost to
the government.
In the short-term, Kuwait has a deal with
Vitol to import around 0.5m cf/d of LNG to
feed its power stations. In the longer term,
the country is hoping to step up its non-
associated gas production and has
targeted levels of 13m cf/d, up from the
present level of 3m cf/d from its northern
gas fields. But the reservoirs are complex
and the government signed a USD 0.7 bn
deal with Shell in February that will bring
in the expertise needed to handle the
tricky development programme.
In the longer-term, low prices resulting
from subsidies will constrain upstream
investment. The effect of subsidies on
potential new production is worrying. In
April, ConocoPhillips withdrew from its 40
pc holding in Abu Dhabi's Shah sour-gas
development. Apart from the high cost of
sweetening the gas from the Shah Field,
perhaps the biggest barrier to
development is the cost curve.
Development costs range from USD 4/m
Btu to USD 5/m Btu. Taking into account
the subsidised domestic price of around
USD 1/m Btu, it is not hard to see why an
investor would be nervous of committing.
The emirate is yet to find another partner
for the USD 10bn project, which plans to
process 1bn cf/d of ultra-sour gas into
0.54 bn cf/d of feed gas for UAE’s
domestic consumption. Another GCC gas
project that has just lost a foreign investor
is Oman's Abu Butabul tight-gas project,
which has around 2 trillion cf in place. BG
Group dropped the project in June,
saying it was uneconomical. According to
Cedigaz, Oman produced 0.875 trillion cf
of gas, consumed 0.520 trillion cf and
exported 407 bn cf in 2010, leaving a
shortage of 24 bn cf.
BG's move is a negative indicator of
investor sentiment and Oman needs
continuous investment to maintain its oil
and gas output. Meanwhile, Oman Oil is
holding talks with the oil ministry to
possibly take over at Abu Butabul, but it
will take a partnership with a company
with tight-gas experience to get the
project rolling.

Kuwait Keeps Its Oil Promise
K
uwait is well on track to achieve its goal to hike its oil
production capacity to four million barrels a day (b/d) by
2020 from its current 3.3 million b/d. As part of the plan to boost
oil output, the Chairman of Kuwait Oil Company, Sami Al-
Rushaid confirms that 120,000 barrels of oil have been added to
current capacity in October, raising it to 3.42 million b/d.
Recognized as a major player in the global energy market,
Kuwait is blessed with oil reserves of 104 bbl which makes it the
fifth largest holder of oil reserves in the world and the second
largest within the GCC, after Saudi Arabia. Considering the BP
assessment (BP Statistical Review of World Energy June 2010)
of 1333.1 bbl of world proven oil reserves at the end of 2009,
Kuwait has 7.8 pc of total oil reserves. This includes half of the 5
billion barrels in the Saudi-Kuwaiti neutral zone which Kuwait
shares with Saudi Arabia.
Kuwait plays host to the world's
second largest oil field, the Greater
Burgan, which has reserves of a
whopping 70-billion barrels and has
been producing since 1938. The
Greater Burgan area comprises the
Burgan, Magwa and Ahmadi
structures and has a production
capacity of around 1.6 million b/d.
The other oil fields of Kuwait, which
has large proven reserves as well, are Raudhatain, Sabriya,
and Minagish fields with 5.1 billion, 4.3 billion, and 3.3 billion
barrels of oil, respectively.
As part of the plan to reach a capacity of 4 million b/d by 2020,
“Project Kuwait” a USD 15 billion plus project was envisaged in
1991. The project aim was to develop the country’s technically
complex northern oil fields and increase production from
400,000 to 900,000 barrels daily. Since, local expertise at that
time was able to produce “easy oil” only, the assistance of
International Oil Companies was essential to provide the
technical know-how. However, the project got repeatedly
delayed due to politicians’ apprehensiveness about the role,
international oil companies play in their national wealth.
In the years gone by, the National Oil Companies of the GCC
Energy Outlook
GCC
have developed considerable technical expertise and financial
strength to accomplish their projects. With things calming down
in the political front and Farouk al-Zanki, being appointed as the
KPC’s (Kuwait Petroleum Corp) Chief Executive in September,
“Project Kuwait” will perhaps see new light with National and
International oil companies working together on more
economically viable terms realized in the initial plan.
Al-Zanki is seen as a person who could drive the 2020
production plan. Kuwaiti oil analyst Kamel Al Harami said, “It’s
good because it’s the first time that someone from the upstream
sector is hired to head the KPC, and this is what Kuwait needs,
to invest and increase production and meet its 2020 production
target.”
Further in the oil production development, the contracts have
been awarded after much delay, for
the crude oil gathering centre (GC–16)
project and the early production
facilities project at Kuwait’s northern
oil fields.
The GC–16 contract for the
construction, commissioning,
operation and maintenance of the
facility has been awarded to Saudi
Arabia’s Al-Khorayef Commercial
Company. The project will have the capacity to handle 100,000
b/d of sour crude oil from the Minagish, Dharif and Abduliyah
fields. The project is expected to be completed by the end of
2014.
The early production facilities project at Kuwait’s northern oil
fields has been awarded to the local Kharafi National. The
Facility will be built at Kuwait’s northern oil fields, with a planned
production of up to 510 million cubic feet a day (cf/d) of
associated gas and 150,000 b/d of wet sour crude. These
temporary facilities will test the viability of production. If viable,
KOC will build permanent facilities.
The fast paced technology development in the oil sector of
Kuwait adds confidence in reaching the massive oil output
5
 GCC

target. Recently, Kuwait Oil Company (KOC) joined the oil and
gas Industry Technology Facilitator (ITF), which has to its name
the recognition of addressing various industry technologies
such as enhanced oil recovery (EOR) technologies, tight and
shale gas and coal bed methane, drilling efficiency, HP/HT
production and more.
However, Kuwait’s oil consumption maintained its upward trend
consuming 419,000 b/d, which was 9.8 pc more that of the
previous year. This is against global oil consumption, which
experienced a decline of 1.7 pc (1.2 million b/d).
As the global economy is accelerating, OPEC maintains a

ITF Managing Director Neil Poxon affirms that “ITF has

successfully launched 150 joint industry projects, providing
creative solutions to some of the major challenges that the
sector faces."

Coming to the country’s journey in the oil production graph, it is

characterized with numerous highs and lows on account of
various issues including new oil discoveries, new technological
innovations in the oil industry, political disputes, economic
crisis, and the rise of renewable energy.

After maintaining a pretty well upward trend in the oil production

(Fig. 1) from 2002 to 2006, the country encountered a minor
slump in 2007 followed by a sizeable decline in 2009 due to the
global financial crisis. To stabilize the oil market during the 2009
crisis, OPEC (Organization of Petroleum Exporting Countries)
collectively cut its oil production by 2.5 million b/d, or 7.3 pc of
the previous year output, maintaining a quota of 41.2 pc (Fig. 2)
in overall oil production. As a result,
OPEC’s founding member Kuwait registered a decline of 11.3
pc (301,000 b/d), contributing 3.2 pc in total production.
positive note on rising oil demands. At the OPEC’s 50th
Anniversary on September 14 Secretary General Abdalla
Salem El-Badri, asserted that fossil fuels would remain
important for at least the next 50 years. OPEC forecasts world
crude oil demand to grow to 85.5 million b/d and 86.6 million b/d
in 2010 and 2011, respectively. El-Badri said, OPEC was still
investing in the industry and remained confident about meeting
oil demands. In the decade to come, Kuwait with its surplus
crude reserves, and growing technical expertise, can be
expected to keep its promise to reach its oil targets.

SEC Picks Contractors for Qurayyah Power Project

T he Saudi Electricity Company (SEC) has pre-qualified the

following contractors for its Qurayyah Independent Power
Project (IPP). The contractors will submit proposals by Feb 28,
National Power Company of Saudi Arabia/Abu Dhabi National
Energy Company of UAE
Powertek Berhad of Malaysia and Saudi Oger
2011. Acwa Power of Saudi Arabia
Sembcorp Utilities of Singapore
Suez-Tractebel of Belgium
AES Corporation of US/Saudi Masader Company for Water,
Power and Gas Sumitomo Corporation of Japan
General Electric of US Tenaga Nasional Berhad of Malaysia/Saudi Binladin Group
International Power of UK
Korea Electric Power Corporation of South Korea The project consists of a combined-cycle gas turbine (CCGT)
plant with a capacity of 1800-2100 MW. SEC and the
Marubeni Corporation of Japan
successful bidder will have equal shares in the BOO project.
Mitsubishi Corporation of Japan The construction will begin by August 2011 and will be
Mitsui & Company of Japan completed by June 2014.

6 Energy Outlook
 GCC

Are LNG Investors Worried?

T he LNG industry is facing
many uncertainties in the
short to the medium term, but
the long-term outlook remains
confident.
Though the long-term outlook
remains optimistic, the LNG
industry is facing uncertainties
in the short term period. With
global Liquefied Natural Gas
(LNG) production capacity
growing rapidly, it looks like a
boom time for the sector. But a
worsening gas glut and
unprecedented demand
uncertainties are making life
difficult for existing LNG
projects and potential investors
in new capacity.
Leading the global supply
surge is Qatar, which next year
will hit its ambitious export
target of 77 million tonnes a
year (t/y). This will confirm the
country as the world's largest
LNG producer, with a market
share of around one-third.
Projections say that between
2009 and 2013, around 130 bn
cubic metres a year (cm/y)
(almost 100 m t/y) of new LNG
capacity will come on stream.
Half of that will be in Qatar and
the rest in countries like
Russia, Indonesia, Yemen,
Malaysia, Peru, Australia,
Angola and Algeria and many
of them are first time LNG
exporters. This will jack up
global LNG output capacity by
50 pc in just four years.
Two major projects Papua
New Guinea LNG (6.6m t/y)
and Australia's Gorgon (15m
t/y) which are scheduled to be
commissioned in 2014-15 will
add another 22m t/y to global
capacity. It is also possible that
one or two more projects may
reach a final investment
decision by the end of this year,
probably in Australia, adding
further capacity to the 2015
total. Between 2011 and 2015,
global LNG capacity could rise
by around 130m t/y.
It is an impressive ramp up. But
the timing looks terrible. And it
raises question marks over
investment in new export
capacity in the second half of
the decade. Most of the
liquefaction projects starting
up now were sanctioned
between 2003 and 2005. But
while the projects were under
construction world demand
has changed.
The uncertainties created by
the recession are
"unprecedented," and they
pose a threat to investment by
LNG exporters. So far, the
industry has escaped the full
effects of the glut. Although
53bn cm/y of new capacity
came on stream in 2010,
global LNG trade rose by a
relatively modest 5.3 pc over
2009 to reach 190m tonnes.
This is because nameplate
capacity is one thing and
o u t p u t a n o t h e r. O v e r a l l
production was hit by a range
of factors like delays in
commissioning, technical
problems at new plants
including the mega-trains
being commissioned in Qatar,
gas-supply issues in Nigeria
and Algeria, and long ramp-up
periods at some other projects.
Meanwhile, LNG demand has
been recovering quickly than
expected, partly because of a
return to strong industrial
growth in Japan, South Korea
a n d Ta i w a n , i n c r e a s i n g
demand in developing markets
like China, and the emergence
of new markets in Latin
America and the Middle East.
Even in Europe, where gas
demand plummeted in 2009,
LNG-demand growth has been
much stronger than expected.
Indeed, a key sign of the
limited liquidity in the global
LNG market over the course of
2010 has been the divergence
of prices at Henry Hub and
NBP. US LNG imports have
been suppressed by the rise in
indigenous production and this
surplus supply in the Atlantic
basin would be expected to
depress prices at NBP.
Instead, NBP prices have been
significantly higher than those
at Henry Hub for most of the
year, as much of the surplus
LNG has found its way to other
markets.
Thus the LNG output surge is
likely to change and pick up
pace. Strong growth will
continue into 2011, as Qatar's
last two 7.8m t/y mega-trains
come on stream, along with the
4.3m t/y Pluto project in
Australia. This will affect the
regional LNG markets
differently. LNG demand
growth in China and India
could really bite into LNG
supply. Between them, both
countries will be capable of
importing around 70 - 80bn
cm/y.
The costs of liquefaction
projects are now higher than
they were a decade ago and
traded gas prices are likely to
remain low for the foreseeable
future. New projects will need
sponsors with robust balance
sheets, sharp eyes and deep
pock

GCC Contracts to hit USD 213 bn by 2011 end

T he GCC projects market is expected to perform stronger in 2011 compared to the second half of 2010. With the recovery from
global recession, a projected growth of 120 per cent during 2011 will take the total value of GCC projects to an estimated contract
value of USD 213 bn.

Companies working in the projects market could be busy in 2011 depending on the number of big projects. The only reason that will
make it difficult to meet this figure are unexpected delays.

Saudi Arabia leads the region awarding contracts worth around USD 82 bn, followed by the UAE at nearly USD 38 bn, and Kuwait at
USD 26 bn. TEI-EO research indicates a 8 pc growth in the value of contracts awarded to GCC’s main contractors in 2011.

Energy Outlook 7
 GCC
Kuwait Inks Mina Al Ahmadi
Refinery Revamp Deal
T he Mina Al Ahmadi refinery is one of the major refineries of
the Kuwait National Petroleum Company (KNPC), and its
revamp is part of the modernization project of the oil refining
industry.
Located 45 km to the south of Kuwait City in the Arabian Gulf,
the refinery was established in 1949 to meet the demand for
gasoline, kerosene and diesel in the local market.
The refinery’s modernization started in the early 1980s as part
of an overall plan to upgrade the oil refining industry and expand
refineries. The project was aimed at providing local and world
markets with low sulphur content petroleum products, and to
reduce dependence on gas as a fuel source. The project was
completed in four years, and the refinery became one of the
world's most progressive refineries, in terms of technology and
refining capacity.
The KNPC, in order to revamp its refineries and increase
capacities, devised a multi-billion-dollar ‘Refineries Upgrade
Program’ and the ‘Clean Fuel Project’ program.
The refineries upgrade program involves the upgrading of
tanks, effluent revamping and renovation of control, safety and
the main process systems at the three refineries - Mina
Abdullah, Mina Al Ahmadi and Shuaiba.
The Clean Fuel Project involves the rehabilitation and
upgrading of Mina Al Ahmadi and Mina Abdullah refineries to
increase capacities.
The latter half of 2010 has seen a significant growth in contracts
for refineries, though after a long delay due to the country’s
unease with foreign firms, who were awarded the contracts.
Contracts Awarded
The KNPC awarded a USD 400 mn contract to Italy’s Tecnimont
to build an acid-gas removal plant at the Mina Al-Ahmadi
refinery. The plant is part of the clean fuel project that covers the
upgrade of Mina Al Ahmadi Refinery.
The KNPC tendered the contract in December 2009 for which
ten international engineering firms were prequalified.
Tecnimont, the engineering firm, won the contract after
emerging as the frontrunner with the lowest bid of KD 116 m
(USD 404 m) in a May 18 bid round.
The other companies who competed for the contract, were
China’s Sinopec, the UK’s Petrofac, Italy’s Saipem, GS
8 Energy Outlook
Engineering & Construction and Hyundai Engineering &
Construction, both of South Korea.
Tecnimont along with partner Mohamed Abdel Mohsen Al-
Kharafi & Sons in Kuwait will build the facilities to strip sulphur
from natural gas at the refinery 50 km from Kuwait City. The
facilities include a gas-handling unit, gas-sweetening facilities,
as well as a sulphur recovery unit and related infrastructure.
The contract also involves revamping of the existing gas
handling facilities.
The plant will have a capacity to handle as much as 230 million
cubic feet a day of gas and 78,000 barrels a day of
condensates. It is expected to be commissioned by the end of
2013.
The other contracts which have been awarded are the KNPC’s
LPG Train-4 project and the flare gas recovery unit at the
refinery. South Korea's Daelim International Company won the
contract worth USD 886 million in June 2010, for the
construction of a fourth gas production train at the refinery's gas
liquefaction plant. The project involves the construction of gas
plants which will produce ethane, propane and butane by
treating about 805 billion standard cubic feet a day (SCFD)
gases and 106.3 mbpd condensates. The project is expected to
take three years.
Local engineering and construction firm Gulf Spic General
Trading and Contracting Company won the flare gas recovery
unit contract worth KWD 8.75 million (USD 31 million).
Imminent Deal
The contract worth USD 1.2 billion to design and build a new
liquefied petroleum gas (LPG) tank farm at Mina Al Ahmadi
refinery is imminent. The planned tank farm in the northern part
of the refinery will replace the older one with lesser capacity.
The new tank farm will store LPG from KNPC’s fourth gas train.
AMEC completed the FEED study for the project in Q2 2010.
KNPC has set the closing date for technical and commercial
bids at November 28, 2010. The project is expected to be
completed by the end of 2013.
The firms pre-qualified for the contract are Daelim Industrial,
Daewoo Engineering & Construction, GS Engineering &
Construction, Hyundai Engineering & Construction, Hyundai
Heavy Industries, Petrofac International, Saipem, Sinopec
Engineering and SK Engineering & Construction. The contract
is likely to be awarded by February 2011.
 INDIA

Special Feature

Hydro-electric Projects

Problems Galore in Awarding Contracts

R
ecalling the early days of hydro privatization in the early indigenously, because the expenses have been no less.
nineties, when the Department of Non-Conventional Even so, deep within I am certain it could never have been
Energy (DNES) made its first transformation towards a Ministry possible that way, in a fraternity where anything internationally
and came to be known as MNES, I remember a meeting with the borrowed is acceptable, but we have not come to accept that
Advisor while representing my small hydro manufacturing we can learn to work in an international manner ourselves. And
company, named Flovel. there, my fellow ‘hydrozens,’ lies the moot problem of hydro, be
it technology, manufacturing or contracting.Now after almost
One of the main issues was to put an end to the
downscaling of large hydro projects to arrive at a
technological or commercial understanding of the
subject in its broken down economies of scale. That
was the phase when only small hydro could be
conceived for privatization and so came the question.
Finally with MNES formation came the definition of
small hydro and it has changed from 3 MW to 25 MW
since the early 1990s, but not without the question,
“How big is big and how small is small?” in a science,
where unit capacity is based on permutations of head
versus discharge and various land related and local
issues.

With the definition of MNES changing to MNRE a few

years ago, surely more ideas ought to be added, such
as climate change, global warming, ‘ganga bachao
(Save River Ganga)’ and surely with further impacts
two decades, when small hydro has grown by more than 200
ahead. So should a low head canal base hydro project have a
private developers, of whom many have completed and others
different definition as against a hilly high head hydro power
are in various stages of clearances and project execution, we
plant? There have been numerous debates on the
have a participating industry encompassing both private and
“Standardization” aspect. Those of us from the Turbine design
the government sector. Yet I have seen private sector
and contracting sector can truly wink as to what the hullabaloo is
professionals traversing the globe and many ending
all about because our principals would always put a significant
spellbound in China, only to get perplexed once they return to
engineering cost while adapting a so called “standardized”
long gestation hydro power projects.
design to a project.

While forming foreign joint ventures then, we had perhaps given
some semblance to the MNES desire for standardization, but
were far away from executing multiple orders of a “small hydro
industry” with a small engineering work force, and I would tend
to ponder, whether had it not been better to develop the turbines
Going back to the matter of high engineering costs with
international manufacturers in India for standardized
equipment, truly, how much impact can a variation of even one
percent in efficiency of a bidder’s turbine have (sometimes the
difference between winning and losing a tender, based on

Energy Outlook 9
 INDIA
financial loadings during evaluation) on an already uncertain
flow discharge pattern at sites, to justify the engineering cost
too? Somehow today’s small hydro private dhevelopers seem
to be convinced that the cheaper Chinese turbines are a lot
more attractive! Quality again, is a matter of choice!
As such, even when working towards a Model Document for
Hydro Contracting, we will have to think deep down the science
and its implications for the future. Otherwise we will grope with
“how model is model” just as “how standardized is
standardized” and “how big is big.”
Evolution of the Hydro Contract Document
Te last decade has been a mixed bag of miracles and miseries
for the hydro world and I can only speak from the viewpoint of a
marketing & contracting professional with a global multinational
hydro manufacturing and contracting company. Even so, the
significance might well be lost on say, a middle management
marketing counterpart in the government sector. One of the
main reasons is that he (in public sector) is not pulled in two
opposite directions by the controller of accounts in Europe
adamant to have me build additional risk costs every time there
is a bomb blast in India, and to deal with the head of contracts of
a public sector entity on the other, who asks “so you have done
great work in Europe on similar projects….but what have you
got to show in India?”
This has been perhaps the greatest challenge of this unique but
growing breed of multinational and transnational contracting
professionals in the last two decades. The fact is that around 80
pc of my partners-in-progress hydro professionals are in the
public sector or from it, wherever they may presently be.
Also it is true that there are equal opportunities at present for
contracting personnel in the private sector as in the public sector
and this shift of Human Resources shall have a definite impact
on contracting to where it is headed.
But before that happens with time, we must look holistically
across the country and how the contract document has
developed in recent years. Even now, when I am writing a tender
document and forget the right phrase, I would tend to say
“…..shall be as per NHPC clause pertaining to the same.”
I have seen by virtue of my close proximity to their office i
10 Energy Outlook
Faridabad, how the thinking and adaptation process has been
and how the delays in contract awards have been caused, and
later in some cases prevented, in this learning process at the
core of the hydro power sector.
I recall our own, as also the foreign principals’ frustration when
even NHPC would still ask for “fully homologous model tests”
for a small hydro project and found it impossible not to use its
entire strength of a large hydro project work force to a small
hydro project in the Andaman and Nicobar Islands. However,
the project was a success and then there were perhaps not as
many large projects on the table as they have now. Perhaps this
proximity in my educative phase and the fact that NHPC
officials have headed CBIP and other private and public groups
even after retirement from the NHPC, became the reason for
me to write this article at the 11th hour of a conference on model
contract documents for the benefit of all, especially the new
generation of contracting personnel in both the private and
government sectors.
Yes, firstly the famous NHPC ‘Forms’ section of the contract
which gives no room to fudge the truth, but repetition over and
over again has made it a drudgery of sorts. I have also felt that
when references and experience lists become so focused it
leaves no room for growth and development within an
innovative organization, which can very well develop new ideas
and products if given leeway to experiment. Why cannot the
customer’s contracting think tank give some benefit of doubt to
new and entrepreneur companies in building new ideas and
products. In fact they should actually be giving marks for that, if
we are in a progressive India which has found water on the
moon!
One of the greatest drawbacks of hydro contracting is that we
get confused by hydro specific local and policy issues and start
treating the sector like it involved ‘Rocket Science,’ rather than
to dovetail the local and policy issues with evolving technology
and development of indigenous or “Made for India” overseas
skills and capabilities in hydro engineering practice. Also, the
oft repeated phrase that itself secludes hydro from all else, “but
are you from hydro?” is irrelevant when even public sector
transfers from thermal to hydro and vice versa have hitherto
been quite normal. I also recall a quip from a public sector
thermal project official (many years ago), that thermal sector
officials are smarter than hydro sector ones. While I would not

agree or disagree with that, I do agree that the rate of progress in
thermal has been far greater and the crossover bridge to and
from thermal to hydro is essential, but commercial and technical
verticals in the public sector would have to be thinned down
significantly to dovetail the two essential elements when
formulating contracts. Many of my fellow ‘hydrozens’ will recall
the PFC made model contract documents for the R, M & U
(Renovation, Modernization & Upgrading) program in the late
1990s after much debates, seminars and meetings and under
the aegis of CEA and MOP.
It did trigger the program and helped some private sector
multinationals like my erstwhile SULZER/VATECH subsidiaries
and others like VOITH to emerge as challengers to BHEL. Even
the NHPC and State Electricity Boards welcomed the private
alternatives, since BHEL was a monopoly until then. Even so
after the initial spurt, the R, M & U program has laid dormant,
depleted and the back to the
small contractor phase, mainly
as development of contracting
documents and evaluation
procedures never happened.
Even larger and important
hydro projects of NHPC,
UJVNL & BBMB were shelved
or put on hold as evaluation
aspects looked widely hazy. Yet
we have stood by the lowest bid
fixation and cannot define the
‘lowest evaluated bidder,’
because that needs contracting
‘finesse,’ especially for the
innovative areas of R, M & U
and some cases of large and mega hydro in the Himalayan and
silt-prone regions.
The evolution process of making contract documents, to create
models that are flexible and adaptive to situation and change,
rather than ‘language documents’ of ‘standard forms’ that have
insinuations of being gospel is the real challenge in hydropower
sector contracting, if it is to rise as popular and powerful as its
thermal or nuclear cousins.
For selection of hydro developers we have tariff based
evaluation, fine, but the same used in judging generating
Energy Outlook
INDIA
equipment and machinery contractors has not been without
raised eyebrows over the many assumptions that are required,
as the tariff aspect is broken down into smaller elements. Also,
we are still unsure of the measurements of ‘turbine efficiency’
and find it impractical to enforce guarantees. I sometimes feel
that many of the ‘musts’ are irrelevant, and in most cases the
holes can be filled not by in-house perception but having the
right external experts in contract committee. Off late I was
aghast to learn that in the government sector there is no
provision to appoint a private consultant for obvious reasons,
although an ex-government employee can be appointed
without even a bid process!
In many cases, project owners would do better if they try to
reduce their project costs in simpler ways, rather than enforcing
so many guarantees on contractors that they hike their prices
for risks involved! In the end they have qualified bidders who do
not meet their budgets.
Either they must move
parliament for a hike in
costs or delay until a
contract-worthy solution is
found.
In any case, the project gets
delayed! Sometimes we
have to look beyond the
p r a g m a t i s m o f
modernization & change
and resort to convention. All
this means the need for
flexibility and not creating
bibles in contract modeling.
But all said, this could also point to the failure of the private
sector for projecting itself as very reliable and trustworthy!
Lessons from Global Contracting
I recall asking my German counterpart contract manager once,
“then how would you award consultancy and execution of the
same project to the same company” in a hydropower RM&U
project in which the contractors were selected on the basis of
best and cost economical solutions.
In fact, the flexibility of the contracting process (on a global
platform, mind you!), gave birth to several SULZER’s
11
 INDIA
innovations in low head turbine configurations such as Straflo
(generator with its hub as turbine inside water path) and many
other unique and innovative concepts, while finding specific
solutions for the replacement of old turbines within existing civil
works. I say this, as I can count a lot more than 25 small/medium
hydro projects in the country which are not operational for 10 or
more years since they were taken up. No one can contribute the
right techno-commercial idea to revive these, which is within the
parameters of the Ministry of State guidelines. The best that
Contractors and Manufacturers have hitherto recommended is
to change the entire equipment, which can never be acceptable.
The truth is, that no one has the time or commitment to solutions
in a PPP manner that would make these investments find their
worth.
But my question is, will you pay me to find the solution and
execute it too. Then we do not have a contract document to do
that…no sir, not for 10 years. We have to understand the simple
logic of a mathematical equation, that more the ‘ponderables,’
more the variables and more the creativity to sequence these
variables and variables into multiple equations and to merge
these equations into a simple single and solvable
equation….but that takes talent and ideas and money to back
up. So the challenge is can we be creative to formulate these
contracts which can be fair to all concerned without asking
“have you done it before,” because we have never done it
ourselves. But who can bell the cat?
Fortunately, I notice from recent contracts, that we are
becoming less binding even in new construction large hydro
projects of some private developers while specifying generating
equipment…yes, we have all learnt from our mistakes and even
the CEA is clear on how to handle the ‘cusp’ in regions when a
Pelton Turbine can be used just as well as a Francis, perhaps
with some advantages too in some cases. So definitely we are
improving!
12 Energy Outlook
On the civil side, we seem to be sure that we have mastered
every civil engineering aspect because with private developers
coming in, the civil engineer has become the contract specialist
and has given due flexibility to the E&M contractor, but not to
another civil contractor. So we have in some cases desilting
tanks that cost a fortune when perhaps the cost could have
been cut and better utilized to find other solutions such as
investing in the development of protective coatings for turbine
parts.
We all know that the civil document of a DPR cannot be touched
during the contracting phase. But here there is another problem
of project authority approval and putting the horse before the
cart and vice-versa scenario. Getting Civil consultants and Civil
Contractors to work side by side with equipment specialists in
DPR phase can indeed be a challenge, but will prevent delay-
intrinsic situations when even minor drawing changes must go
through a long process and we have only the CEO in case of a
private developer to be the deciding authority in the end, once
their engineering team have okayed the DPR and drawings.
It is such pressures on the top management of SPVs and
private owners that cause possible catastrophes (alternatively
delays!) if we are over-tenacious in expediting our project but
lack knowledge and contracting skills that have seen mega
hydro project successes world-wide. This also calls for the
training of the top management of private sector companies in
phasing out the innings with the skills of a Sachin Tendulkar.
Such is the process of project scheduling and contract
development.
I see training ourselves through global ideas rather than taking
on foreign technology or well learnt postulates as gospel as the
prime area of focus, even though we have developed ‘model
contract procedures,’ but may lack skills to follow them
eventually. As such the ‘model’ can at best be a guide.
Adapting the lessons to Contract Models for Hydro
In a nutshell Indian Hydropower has to re-evaluate itself, now
that we have learnt something so that we are not China or any
other country-dependent to formulate our own thinking, but
have adequate awareness of how they all succeeded in their
countries. China, has looked only inwards and has immense
faith in its people, whereas we are nowhere near that, even
though we boast we have the best engineers in the world. It
 INDIA

would be futile to create model documents with an yet untrained
private sector which is still coming to terms with the specifics of
hydro and any day, might well want to run back to the comfort of
thermal & wind for some degree of ‘certainty’ in how he must
proceed…..the reason that hydro projects, especially in smaller
ranges have become more like property investments than
power sector development.
As such, I see contracting as a HRD issue, especially in the
wake of the post recession period when I am seeing a welcome
influx of HR consulting companies wanting to specialize in
power & infra. It would be pragmatic to create forums with hydro
expert groups in the development of HR ideas for training,
development & placement of personnel.
The wide-scale web based networking opportunities are a boon
to professionals and can be made instrumental to provide
greater penetration in shorter time. Further Hydro, both new
projects as well as cases of Renovation-Modernization, is
qualified for carbon credits under CDM and these issues will
have to be incorporated with a eye on each contracting
constituent as failures can result in environmental problems. An
overall idea to get the hydro (and for that matter the Renewal
Energy) sector out from its closet into mainstream industry in a
guided manner can be a role for a central body of the
government. This should also address grievances of bidders
and developers and prevent situations in which we are left with
no viable bidders in certain categories of hydro projects, such
as services, repairs, overhaul where contracts are still tailored
for BHEL (who must concentrate more on larger challenges
ahead), unless a local contractor who has repaired a shaft seal
of a 100 MW project succeeds in proving that he has ‘executed’
a 100 MW project.
Such provisions will encourage entrepreneurship and the
development of new companies, formed by experts from the
larger groups perhaps, to build a larger subcontracting base
and hence viable local options for developers and owners of
projects both in public and private sector. Formulation,
execution, understanding and appreciation of contract
documents are the key to solving all the hitherto prominent
problems of hydropower:

1. Lack of understanding of the multiplicity of issues involved from local to technology & finance
2. Power industry and government making efforts to encourage a framework for funding talent in form of expert groups
and enterprise in manufacturing and contracting, in addition to asset based financing of power projects
3. Development of a reliable contracting and subcontracting base who are partners in the project
4. Learning from past experiences and indigenization of manufacturing technologies & enhancement of severely
depleted indigenous manufacturing base progressively over coming years
5. Education & grooming of management & personnel talent within private and public sector
6. Grooming and developing new age contracting and engineering personnel in government departments to put power
sector in India on par with the best in the world
7. To reduce the Thermal to Hydro gap by facilitating faster completions and allotment process
8. Enhancing Public Private Partnership and facilitating the two to work jointly towards the development of power &
infrastructure within the country.
9. Social contribution to educate and involve the people of the country, especially locals in hydro intensive areas about
climate change and making optimum use of the natural resources at our disposal - while they last and are within
man's control.

YOGESH BAHADUR
Presently Managing Director, Pentacle Energy & Infra Projects Pvt. Ltd.; Yogesh Bahadur was President-CEO/Power Business with Best &
Crompton and Head of Business Development for VATECH HYDRO/Flovel, Faridabad prior to setting up his company with a mission to “Fill the
holes” in development of Power and Renewable Energy projects in India and provides Business Consultancy and EPC project support services.
Mr. Bahadur is a graduate Naval Architect & Marine Engineer from University of Michigan, USA and has about 30 years experience in Power
Sector and Shipbuilding with expertise in hydro power, steam and gas turbine technology. He has been at forefront of business development by
multinational contracting companies in India who set shop in India in early '90s and has played a pioneering role since development of the first of hydro and
wind energy projects in private sector.

Energy Outlook 13
PROJECT DATABANK

14 Energy Outlook
 INDIA

Energy Outlook 15
 OTHERS
The Rise of The Umbilicals
T
he Rise of The Umbilicals 9 Ian Probyn,
Senior Structural Analysis Engineer at DUCO
Ltd, Technip, UK gives Energy Outlook an insight
into the manufacture, working and the significance
of umbilical systems at DUCO, Technip.
Ian Probyn is responsible for development of finite element
analysis techniques of subsea umbilical systems at Duco.
Umbilicals are used as control and supply link for subsea Oil and
Gas extraction equipment.
Probyn joined DUCO in 2004 and has been responsible for
developing and validating finite element analysis techniques,
based on Abaqus, to assess the behaviour of the complex
helical construction of the umbilical in structural and thermal
scenarios. He graduated from Loughborough University in 1997
with a Bachelor’s degree in Automotive Engineering, and
worked as a crash simulation engineer for Rover, BMW and
Land Rover, where he developed vehicle body structures for
crashworthiness using FEA software.
An umbilical is the control link that goes from either a floating
vessel or a fixed platform down to the seabed and connects to
sub-sea equipment for oil and gas extraction. Umbilicals can
either be static, where they are laid upon the seabed, or
16 Energy Outlook
dynamic where they hang in the water column, and are
subjected to fatigue loading.
There are of four general types of umbilicals, the steel tube,
thermoplastic hose, power cable and hybrid umbilicals.
The umbilicals carry chemicals for injection into the flow-line for
flow assurance, electrical power supply and hydraulic power
supply. The umbilical also provides hydraulic and electrical
control signals, and optical control signals via fibre optic cables.
DUCO LTD & Technip
DUCO’s main facility is located at Newcastle upon Tyne in the
UK. We have four manufacturing facilities. They are at
Newcastle-UK, Houston-US, Angola on the West Coast of
Africa, and a new facility that is scheduled to commence
operations this year in Malaysia.
Since 2003 DUCO has been a part of the Technip group.
Technip provides full oil and gas capability in sub-sea areas,
and offshore and onshore. When it comes to sub-sea
equipment, Technip, designs, manufactures and installs
umbilicals, flexible risers and rigid pipelines. For offshore
projects, Technip is capable of engineering and construction of
fixed or floating platforms adapted to all water depths for oil and
gas production at sea. Onshore, Technip engineers and
constructs all onshore installations for the oil and gas,
petrochemical, and non-oil industries (including chemicals, life
sciences, renewable energies…) So, the umbilical system is
only a small, but vital, piece of the jigsaw puzzle which makes
up a complete offshore installation.
Umbilicals in deep waters
Installation becomes very critical especially when it comes to
providing enough 'crush-resistance' to the umbilical to be able
to hold on to it in an installation caterpillar. Finite element
analysis can be used to assess the crush performance of the
umbilical and ensure that the components inside are not likely
to get damaged. For example, we can determine the upper
working limits of those components and make sure that the
umbilical system is installable with existing lay equipment.
 OTHERS

Why no one makes them better than Duco?

Every umbilical system is purpose designed for the particular
function and at Duco Ltd, we place strong emphasis on
research, development and engineering. We thus have a very
good engineering back up. We also have very good systems for
design and manufacture.

DUCO and Umbilicals

Umbilicals are not the only products manufactured by Duco. We
also design end termination systems and sub-sea foundation
equipment. For example we make mud-mats which sit on the
sea bed supporting the end termination, enabling the umbilical
to be connected to the field by an ROV.
keep it stable on the seabed. For a dynamic umbilical, which is
We also design and manufacture the connector, or jumper suspended from a vessel, we need to think about fatigue and
umbilicals that join the main umbilicals from the end termination make sure that the steel tube components don't have metal to
to subsea equipment like christmas trees, manifolds and well- metal contact. Therefore they are coated with a polymer
heads. material. We also need to design a bend stiffener, so that at the
connection point with the vessel, the bending movement is
Umbilical Components
controlled to avoid over-bending which may damage the
Some of the key components that go into the umbilical are steel
umbilical components.
tubes, thermoplastic hose made out of extruded polymer liners
with braided Kevlar reinforcement to give it pressure retention
and tensile strength, electrical cables, both signal and power We perform all the engineering, based on validated methods, to

and fibre optic cables. If it is a steel tube umbilical then the steel prove that the fatigue life of the umbilical is going to be sufficient

tubes provide the tensile strength, and if it's a thermoplastic or for that particular installation. This can be dependent upon the

power cable umbilical then there's a steel armour layer that's type of vessel that the umbilical is attaching to, that is whether

applied, and that provides tensile strength. it's a spar or an FPSO, as dynamic motion can vary between
various types of vessels.

The umbilicals are helically laid and that provides flexibility in

bending so that the functional components are not over-
stressed during bending.
Anti-Fatigue Dynamic Umbilicals
The design requirements of dynamic umbilicals are
considerably greater than that of static umbilicals. The static
umbilical, once installed on the sea-bed, is relatively benign. In
shallow waters sometimes there are strong currents and the
umbilical may need to be buried to prevent it fro getting
damaged, or we can design it so that it has sufficient mass to
Indian Response to Duco Umbilicals
The Indian response is indeed a very positive one. The people
who came to our stand (Technip - Oceantex 2010) say that they
enjoyed our presentation.
Future of Indian Offshore Technology
The energy demand in India is predicted to increase. The
amount of energy that's being imported in terms of
hydrocarbons is very high. So I think India is making itself more
self sufficient when it comes to energy supply. I think there will
soon be more developments in the offshore business in future.

Energy Outlook 17
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please email at fdesk@theenergyinfo.com or
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TENDERS GCC

Kuwait

Tender Name : Supply and Extension of Electricity Cables 1. Civil and structural
Description : Kuwait's Central Tender Committee has issued 2. Electrical: High and Low voltage
tenders for supply and extension of 132kV 3. Mechanical: piping and pipelines
ground cables insulated with cross-linked 4. Pressure vessels and heat exchangers
polyethylene (XLPE) and pilot cables with 5. Instrumentation and Control System
accessories in the Shuaiba area for the 6. Fire and Gas Detection System
Electricity & Water Ministry. Tenders are open to 7. Telecommunication
prequalified contractors only. 8. Architectural and Landscaping
A pre-bid meeting will be held on 8 November. 9. HVAC
10. Process
Bid Bond : KD 340,000
11. Rotating Equipment
Details : Complete bid documents can be obtained on
QAR 1,500,000
payment of KD 2,500 from: Bid Bond :
Central Tender Committee, Complete bid documents can be obtained on
Details : payment of QAR 500 from:
13011 Safat,
P.O. box 1070 - Safat. Qatar Petroleum
Tel: (965) 2401200 Contracts Department - Operations Division,
Fax: (965) 2416574 Room G13, 4th Floor,
Email: info@ctc.gov.kw G Wing, Royal Plaza,
Doha, PO Box 3212.
Country : Kuwait
Tel: (974) 440 2000
Closing Date : 05/12/2010 Fax: (974) 483 1125
Country : Qatar
Oman Closing Date : 19/12/2010

Tender Name : Extension of Power Supply

Tender Name : Loading/Unloading of Material
Description : Tenders have been issued by the Mazoon
Description : Tenders have been issued by Qatar Petroleum
Electricity Company (2) for Extension of the
for the loading/unloading of catalysts and support
power supply to Al-Qualaih, Al-Halyiah, Wadi
material. The objective of this contract is to utilize
Khashkhah, Jabyiat Dimma, Faqarah and Al-
the services of contractor on call-off basis for a
Zabai villages in Jalan Bani Bu Ali in the Al-
duration of three (3) years to undertake loading
Sharqiyah region.
and unloading of specific catalysts and support
Details : Tender Document can be obtained from : material provided by QP, to and from vessels
Tender Document can be obtained from : and reactors in accordance with this scope of
Mazoon Electricity Company services and all specifications, standards and
PO Box 787, Al-Khuwair 133 requirements in strict compliance with detailed
Tel No: (96824) 602073/ 602556 instructions on HSE, Administrative and
Fax No : (96824) 602063 Operational aspects.
Country : Oman Bid Bond : QAR 500,000
Closing Date : 13/12/2010 Details : Complete bid documents can be obtained on
payment of QAR 500 from:
Qatar Qatar Petroleum
Contracts Department - Operations Division,
Room G13, 4th Floor,
Tender Name : Engineering Consultancy Services for PCR
G Wing, Royal Plaza,
Description : Tenders have been issued by Qatar Petroleum Doha, PO Box 3212.
for the engineering consultancy services for plant Tel: (974) 440 2000
change requests and miscellaneous engineering Fax: (974) 483 1125
support services within Dukhan Fields and
Country : Qatar
Mesaieed Refinery and Gas Operations Plants.
The following disciplines are required within the Closing Date : 12/12/2010
scope of services:

Please do submit your tender requirements to eo@theenergyinfo.com for effective and competitive bids

Energy Outlook 19
 TENDERS GCC

Saudi Arabia

Tender Name : Provision of Material Handlers Support Services Tender Name : SWCC Desalination Plant
Description : Tenders have been issued by Qatar Petroleum Description : SWCC invites pre-qualification documents to
for the provision of manpower support services of carry out package D of phase three of the
qualified and experienced materials handlers on 1,700MW, 550,000-cubic-metre-a-day Yanbu
continuous and call-off basis to assist QP power and desalination plant project. Package D
Materials Department at different QP Locations includes the design, engineering, construction,
i.e. Doha, Dukhan, Mesaieed and Ras Laffan for commissioning and testing of the desalination
a period of three (3) Years. plant including seawater pumping station,
Bid Bond : QAR 300,000 balance of plant, instrumentation and control
systems, offshore facilities including seawater
Details : Complete bid documents can be obtained on
intake and outfall, and beach development at the
payment of QAR 500 from:
housing compound
Qatar Petroleum
An original copy of the statement of qualification
Contracts Department Corporate Division,
must be sent to
Room G11, 4th Floor,
Arndt-Jochen Mummert, Project Manager
G Wing, Royal Plaza,
Fichtner GmbH & Co, KG,
Doha, PO Box 3212.
Sarweystrasse 3, 70191 Stuttgart,
Tel: (974) 440 2000
Germany
Fax: (974) 483 1125
e-mail: arndt-jochen.mummert@fichtner.de
Country : Qatar
Bid Bond : KD100,000
Closing Date : 12/12/2010
Details : Complete tender documents can be collected
from:
Tender Name : EPIC of Signage System Saline Water Conversion Corporation
Engineer Mohammad Abdullah al-Dakheel
Description : The EPIC tender has been issued by Qatar
Olaya-Prince Mohd. Bin Abdulaziz Street
Petroleum for the of Indoor & Outdoor signage at
PO Box 5968, Riyadh 11432
various locations in Dukhan Township
Tel: +9661 4631111
1. Proposed installation of indoor and outdoor
Fax: +9661 4623709
signage at various locations in Dukhan Township
including indoor directory and room signage at Country : Saudi Arabia
Dukhan Medical Centre, outdoor lighted building Closing Date : 23/12/2010
signage and logos at various buildings and
outdoor LED information display screen at the
Tender Name : Supply of Fuel
Main Gate.
2. Proposed installation of 320 no. aluminium Description : Tenders have been issued by the Directorate of
signage of approximately 250mm width x 211mm Water, Saudi Arabia for the supply of fuel for the
height for the recently completed storage Al-Taif water project.
racks/shelving at the new Record Centre at Bid Bond : QR 400,000
QPAA. Details : Complete bid documents can be obtained on
Bid Bond : QAR 100,000 payment of $135 from:
Details : Complete bid documents can be obtained on Directorate of Water,
payment of QAR 200 from: Riyadh 11195.
Qatar Petroleum Tel: (9661) 4761377
Contracts Department Corporate Division, Fax: (9661) 4012365
Room G11, 4th Floor, Country : Saudi Arabia
G Wing, Royal Plaza, Closing Date : 07/12/2010
Doha, PO Box 3212.
Tel: (974) 440 2000
Fax: (974) 483 1125
Country : Qatar
Closing Date : 05/12/2010

Please do submit your tender requirements to eo@theenergyinfo.com for effective and competitive bids

20 Energy Outlook
Upcoming Events Saudi Aramco Developing
15 - 16 Feb 2011
European Gas Markets Summit
Gas Facilities at Wasit
Regent’s Park Marriott, London

21 - 22 Feb 2011
Smart Mining Supply Chain
Prince Hotel & Residence, Kuala
Lumpur, Malaysia

21 - 22 Feb 2011
EPC Project Risk Management
Prince Hotel & Residence, Kuala
Lumpur, Malaysia
Saudi Aramco plans to undertake a gas development
22 - 23 Feb 2011 program at Wasit, north of Dahran.
The 9th Annual Coal Market
Singapore The program is part of Saudi Aramco's plan to increase gas
supplies by producing an additional 50 trillion cu.ft of non-
associated gas reserves by 2016.
22 - 25 Feb 2011
GasSCADA 2011 The FEED (Front End Engineering and Design) and project
Singapore management services contract was awarded to SNC
Lavalin of Canada in September 2009. The FEED was
completed in June 2010.
23 - 24 Feb 2011
9th Asia Petchem Feedstock
Aramco aims to carry out project as four separate EPC
Markets
packages for onshore works and separate packages for the
Shanghai, China
offshore as well as site preparation works.

28 Feb - 01 Mar 2011
Advanced Maintenance Scheduling
and Planning
Kuala Lumpur, Malaysia
01 - 02 Mar 2011
6th Methanol Markets & Tech
The Diplomat Radisson, Manama,
Bahrain
02 - 03 Mar 2011
8th Phenol/Acetone Derivatives
Shanghai, China
02 - 03 Mar 2011
Hydro Dams Design and
Construction
Kuala Lumpur, Malaysia
07 - 08 Mar 2011
5th Africa Economic Forum 2011
Cape Town, South Africa
EPC bids have been received for all the four onshore EPC
packages, and winning firms are likely to be declared by the
first quarter of 2011.
Aramco had pre-qualified the following 11 firms to bid for
the three EPC contracts comprising gas processing
facilities, a power co-generation plant and sulfur recovery
units.
The contractors are the China Petroleum & Chemical
Corporation (Sinopec), Chiyoda Corporation, GS
Engineering & Construction, JGC Corporation, KBR
Saipem, Samsung Engineering, SK Engineering &
Construction, SNC Lavalin of Canada/Daelim and Technip
Tecnicas Reunidas.
Aramco had pre-qualified the following nine firms for the
EPC contract of a natural gas liquid (NGL) fractionating
column
The contractors are Daelim, GS Engineering &
Construction, Hyundai Engineering & Construction, JGC
Corporation, Samsung SK Engineering & Construction,
Snamprogetti of Italy, SNC Lavalin and Technip.

The pre-qualified firms for the offshore construction

16 - 18 Mar 2011 package have been asked to submit bids by December 7.
Asia Power T&D Summit 2011
Beijing, China The site preparation package worth approximately USD 500
million is likely to be awarded in December 2010.

Energy Outlook 21