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Released December 20, 2016 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--BP plc (NYSE:BP) (London, England) has awarded two global agreements to engineering, procurement and construction (EPC) giant KBR Incorporated (NYSE:KBR) (Houston, Texas) for conceptual engineering services, and pre-front end engineering design (FEED) and FEED engineering services, at several upstream projects. Industrial Info is tracking $16.05 billion in active upstream BP projects in the areas cited on Monday by KBR.
BP and KBR did not single out individual projects or the total value of the contracts, but KBR said in a press release that "the scope of services identified within both global agreements covers onshore, offshore, subsea, drilling, greenfield and brownfield upstream engineering services in Alaska, Angola, Azerbaijan, Gulf of Mexico, Indonesia, Oman, Trinidad and the United Kingdom." Each agreement has a contractual duration of three years, with a two-year extension option on each.
By far, the largest BP project being tracked by Industrial Info that involves KBR is the $10 billion Mad Dog 2 Offshore Platform in the Gulf of Mexico. The project, which is roughly 190 miles off of the coast of New Orleans, involves installing a semi-submersible floating production platform to produce 140,000 barrels per day (BBL/d) of crude oil. BP plans to drill 29 wells, including 17 wet-tree producers and 12 wet-tree injectors. For more details, including contractor contact information, see Industrial Info's project report.
Earlier this month, BP announced that it had approved the Mad Dog 2 project following a long period of redesign and rate negotiations with suppliers, according to Forbes. The total investment value is half the original estimate of $20 billion, but it still is one of the largest oil projects to be approved since crude prices began their long turn downward in mid-2014.
Significantly, Mad Dog 2 will be BP's first new operating platform in the Gulf of Mexico since the notorious Macondo well disaster, more often called Deepwater Horizon, in 2010.
Investments in such large offshore developments have been slow since crude prices fell and producers turned to less pricey onshore projects, such as shale-play developments. Mark Tabrett, an analyst at Sanford Bernstein, told Reuters that the Mad Dog 2 investment approval "could be an indication that they are optimistic that prices will recover--but even if not, they feel confident enough to sanction a project in the deepwater when prices are around $50 a barrel."
Industrial Info is tracking many other BP-owned projects in the areas mentioned by KBR, such as a $2.43 billion addition to the Tangguh LNG Liquefaction Plant in West Papua, Indonesia, and the $1.5 billion Khazzan Natural Gas Processing Plant in Muscat, Oman. Earlier this month, BP announced it had paid $313 million for Repsol S.A.'s (Madrid, Spain) stake in the Tangguh project, which is expected to add a third, 3.8 million-tonne-per-annum train to increase the facility's total production capacity to 11.4 million tonnes per year. The deal elevates BP's stake in the plant to slightly more than 40%.
The Khazzan project, one of the largest BP has under construction, involves constructing a 1.5 billion-cubic-foot-per-day natural gas processing facility with two trains, each of which will have a capacity of 525 million standard cubic feet per day, to process gas and condensates from the Khazzan gas field. For more information, see Industrial Info's project reports on the Tangguh and Khazzan facilities.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
BP and KBR did not single out individual projects or the total value of the contracts, but KBR said in a press release that "the scope of services identified within both global agreements covers onshore, offshore, subsea, drilling, greenfield and brownfield upstream engineering services in Alaska, Angola, Azerbaijan, Gulf of Mexico, Indonesia, Oman, Trinidad and the United Kingdom." Each agreement has a contractual duration of three years, with a two-year extension option on each.
By far, the largest BP project being tracked by Industrial Info that involves KBR is the $10 billion Mad Dog 2 Offshore Platform in the Gulf of Mexico. The project, which is roughly 190 miles off of the coast of New Orleans, involves installing a semi-submersible floating production platform to produce 140,000 barrels per day (BBL/d) of crude oil. BP plans to drill 29 wells, including 17 wet-tree producers and 12 wet-tree injectors. For more details, including contractor contact information, see Industrial Info's project report.
Earlier this month, BP announced that it had approved the Mad Dog 2 project following a long period of redesign and rate negotiations with suppliers, according to Forbes. The total investment value is half the original estimate of $20 billion, but it still is one of the largest oil projects to be approved since crude prices began their long turn downward in mid-2014.
Significantly, Mad Dog 2 will be BP's first new operating platform in the Gulf of Mexico since the notorious Macondo well disaster, more often called Deepwater Horizon, in 2010.
Investments in such large offshore developments have been slow since crude prices fell and producers turned to less pricey onshore projects, such as shale-play developments. Mark Tabrett, an analyst at Sanford Bernstein, told Reuters that the Mad Dog 2 investment approval "could be an indication that they are optimistic that prices will recover--but even if not, they feel confident enough to sanction a project in the deepwater when prices are around $50 a barrel."
Industrial Info is tracking many other BP-owned projects in the areas mentioned by KBR, such as a $2.43 billion addition to the Tangguh LNG Liquefaction Plant in West Papua, Indonesia, and the $1.5 billion Khazzan Natural Gas Processing Plant in Muscat, Oman. Earlier this month, BP announced it had paid $313 million for Repsol S.A.'s (Madrid, Spain) stake in the Tangguh project, which is expected to add a third, 3.8 million-tonne-per-annum train to increase the facility's total production capacity to 11.4 million tonnes per year. The deal elevates BP's stake in the plant to slightly more than 40%.
The Khazzan project, one of the largest BP has under construction, involves constructing a 1.5 billion-cubic-foot-per-day natural gas processing facility with two trains, each of which will have a capacity of 525 million standard cubic feet per day, to process gas and condensates from the Khazzan gas field. For more information, see Industrial Info's project reports on the Tangguh and Khazzan facilities.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
