It is hard to believe that yearend 2017 is just around the corner and we have started planning for 2018. Much have happened since we published our last newsletter; Hurricane Harvey devastated many friends and families in the greater Houston area in September, but Houston stayed strong and quickly started rebuilding. By end of October, the Houston Astros won the World Series Championship and further reunited Houston and boost everyone’s spirit here at home.
In September, ACF hosted its second forum and networking event in beautiful Shanghai, China. The attendees have expanded to include more downstream companies as well as equipment suppliers. We had a great panel discussion on how Asian contractors can gain an edge in the international market, so many thanks to our panelists from KBR, Worley Parsons, SBM and ZPMC. Once again, we appreciate our corporate members and individual members who attended the event and thank them for their continued support.
In the past couple of months, oil price seems to have stabilized around $50/barrel with a slight upward trend fueled by expectations that OPEC countries will extend the output limits beyond the original expiration date. Although market for new offshore facilities continues to be quiet, subsea development and tiebacks, as well as downstream and refinery market continue to be encouraging.
Through this down market, our industry continues to collaborate and partner to find economical solutions. ACF is here to help. As we step into the new year, we welcome more companies to get involved and become our members. We also want to take this opportunity to wish all our members and our industry friends a safe and happy Holiday Season.
CALGARY, Canada – Husky Energy is working toward sanction of the Liuhua 29-1 development, the third deepwater gas field serving the Liwan gas project in the South China Sea, after concluding a gas sales agreement. Construction should start next year followed by first gas in 2021.
SINGAPORE – SBM Offshore has contracted Keppel Shipyard Ltd. to convert a very large crude carrier (VLCC) into an FPSO for ExxonMobil’s Liza oil field development offshore Guyana.
IRVING, Texas – Exxon Mobil Corp. has discovered more oil on the Stabroek block offshore Guyana with the Turbot-1 well.
LONDON, PARIS, and HOUSTON – Murphy Sabah Oil has awarded TechnipFMC an EPCIC contract for the Phase 1A block H gas development project offshore Malaysia.
FAVERSHAM, UK – Westwood Energy expects global deepwater spending to total $126.9 billion during 2017- 21. According to the analyst’s updated World Deepwater Market Forecast, the main focus of activities will likely be on Africa and the Americas, which are set to account for more than 78% of the forecast expenditure.
ABERDEEN, UK -- Wood Group has completed the acquisition of Amec Foster Wheeler. Robin Watson, Wood Group’s chief executive, said: “This transformational acquisition creates a global leader in the delivery of project, engineering and technical services to energy and industrial markets.
Member News & Case Study
Provided by Executive Corporate Member: KBR
KBR Wins Recognition for Technology Innovation and Application in China
KBR was proud to be named one of the Best 100 Suppliers for the petroleum and chemical industry in China by the China Petroleum and Chemical Industry Federation (CPCIF) – a non-government, not-for-profit organization that, among other things, promotes technological advancement and industry upgrading.
KBR was selected as Best Supplier within the “Technology Innovation and Application” category for its excellence and endeavor to ceaselessly provide best-in-class technology development and improvement to the industry.
KBR’s presence and service in China can be traced back to as early as 1972. The first 13 ammonia plants, 8 of which were licensed by KBR, have laid a solid foundation for the fertilizer industry in China. KBR has also provided the most advanced technologies to many industries around the globe including refining, olefins, chemicals, ammonia, and coal chemicals. These technologies have been applied in China and have demonstrated excellence in operation.
KBR’s unique and flexible technologies can help clients deal with crude bottoms, convert heavy streams into valuable petrochemical products, and lower the sulfur and impurities to meet stricter environmental requirements. For example, a large refinery in Shandong is using KBR’s solid acid alkylation technology to produce clean alkylate with high-octane content. This project is already finished with the construction work and is going to start up by end of this year.
KBR’s President of Technology and Consulting, John Derbyshire said, "KBR takes great pride in receiving this award. The recognition reflects KBR’s promise to develop the most innovative and economical technical solutions and consulting service for our clients, without compromising the highest environmental standards.”
Keling Peng, who has worked with KBR in China for 7 years, accepted the award on the company’s behalf from CPCIF Chairman Mr. Li Shousheng at a recent ceremony in China.
ACF Past Events
After the success of Asian Contractors Forum (ACF)’s inaugural forum and networking reception held in Houston, Texas, ACF successfully hosted its second networking reception, this time in Asia. On September 18, 2017 in beautiful Shanghai, China, more than 30 executives from oil companies, international EPC contractors, and Asian contractors and suppliers attended the event. Mr. Tom Liao, Executive Vice President of Worley Parsons China delivered the keynote speech. Mr. Liao emphasized the opportunities that China’s One Belt One Road initiative brings and some of the challenges that Asian contractors face when delivering in the international market. Dovetailed with Mr. Liaos’ keynote speech, panelists from SBM Offshore, KBR, Worley Parsons, and ZPMC shared their perspectives and insights on “How Asian contractors can gain an edge in international market”. They discussed differentiating factors, the tangibles and the intangibles, as well as some of the hurdles that Asian contractors need to overcome. Communication, management commitment, and representation from local market are among the top intangible factors of winning contractors.
There are no further planned ACF events for the remainder of 2017. We’ll have our first event early next year before OTC. On behalf of the Executive Committee of ACF, we wish you and your families a happy and safe holiday season.