Crossing nations to the global economic frontier

The past few years have witnessed an expansion in the activities of Egyptian petroleum companies to operate abroad, penetrating the Middle East and Africa markets. Despite the vicious international competition, Egyptian petroleum companies have been able to attain several international bids to conduct operations abroad. This has proven that Egyptian companies are able to compete abroad and abide by international standards.

1) Arab Gas Pipeline (First Phase)
A group of petroleum sector companies have completed the first phase of the Arab Gas Pipeline (El-Arish – Taba – Aqaba) with total investments of $200 million. Egypt Gas Co. was responsible for the construction, assembly, installation and operation of nearly 800 primary and secondary pressure reduction stations in addition to filtration and metering stations, as well as the Jordanian pressure reduction station located in Aqaba. Egypt Gas had also established control and monitoring buildings in Taba and Aqaba.

2) Arab Gas Pipeline (Second Phase)
A consortium of Egyptian petroleum sector companies including EGAS, Petrojet, ENPPI and GASCO acquired an international bid offered by the Jordanian Energy Ministry in August 2002 to carry out the second phase of the Arab Gas Pipeline. This project introduces the first BOOT venture carried out by Egyptian companies outside Egypt. The total investments count for $300 million.
Although the terms of agreement set a 33-month time limit to terminate the project, it took the Egyptian consortium only 18 months, which resulted in achieving extra foreign currency revenues.
Based on the duties’ framework, ENPPI was responsible for the basic and detailed engineering designs, procurement of equipments, construction supervision of pre-commissioning and commissioning activities and technical support for project operation.
As for Petrojet, it carried the missions of rout surveys, route layout, pipeline coating and layout, welding and engineering inspection, hydraulic tests in addition to construction of valve and control rooms and gas compression stations. Petrojet has already conducted performance tests, 70 km from the line.
According to the agreement, GASCO will operate the second phase besides operating the Jordanian natural gas grid that is feeding electricity stations and major plants in Jordan.
Moreover, an Egyptian-Jordanian company, “Arab Gas”, will be established to handle the shipment of natural gas within Jordanian territories; to be used in cars, households and industrial zones.

3) Sharara-Melita Pipeline, Jordan
Petrojet acquired Libya’s bid to design and construct crude oil pipeline, 30″diameter width and 727 km length, at Elfil Field from Sharara area, South Libya to the export port in Melita. This project aims at increasing the levels of crude oil shiping and export to 145,000 barrels per day (bpd).
Petrojet’s role in this project includes civil and mechanical works, automatic control and engineering inspection and procurement services for valve rooms. The LE700 million-project (99 million Euros) is expected to provide 2,000 job opportunities for Egyptian youth and inaugurate new markets in the field of petroleum projects.
Petrojet has completed the stage of mechanical works and startup operation and also, it has started exporting from the pipeline.
ENPPI has shared in the implementation of this project; ENPPI reviewed basic engineering documents and technical specifications for the project’s procurement, in addition to the preparation of detailed pipeline engineering designs.

4) Al-Serir/ Tabraq pipeline project, Libya
The project is located 550km from Benghazi, 500km from Tabraq city. Petrojet has the mission of retrofitting the damaged part of the Al-Serir / Tabraq crude pipeline.
In an agreement with the Arabian Gulf Company for Oil, Petrojet undertakes the responsibility of designing, operating and testing pipeline, whether above or beneath ground over 17 separate sections with different lengths.

5) Construction of Sudanese pipeline for petroleum exportation
In association with Sudanese Ram Energy, Petrojet acquired the Great Nile Petroleum Co.’s international bid to construct petroleum exporting pipeline, 100 km length and 16″ diameter width, with a total value of $10 million.
Besides, ENPPI acquired the technical services contract for this project in addition to being the project’s sub contractor for Ram Energy, through which ENPPI will prepare the detailed designs and procurement tasks.

6) Ganoub El-Wady Petroleum Holding Company’s new branch in Khartoum
In cooperation with ENPPI and Petrojet, Ganoub El-Wady established a new branch in Khartoum with the goal of promoting the company’s services in the fields of exploration, petroleum services, construction, design and distribution of products.

7) Project of water-feeding and draining grids in Yemen
Petrojet was chosen for the implementation of the water feeding grid project and draining grid in Taez city, in Yemen in cooperation with Yemeni Kahlan Company. The total amount of investment counts for 13 million Euros. Petrojet will also bear the tasks of implementing the preparation phase for the liquefying gas project in Yemen with Technip International Company.

8) Infrastructure project of the liquefaction gas plant, Yemen
Yemgas has started its first project in the field of gas liquefaction and export in the city of Balhaf, situated in eastern Yemen. This Yemeni company selected Petrojet to conduct the process of infrastructure, including the establishment of a feeding grid, electricity, communications, and route grids. The time estimated to complete this phase is 14 months. Petrojet has been chosen for its excellent reputation in this domain.

9) Complete technical support and supervision of Syrian AFPC’s constructions
ENPPI is responsible for presenting technical support and supervision of the implementation and management of different projects held by Alfurat Petroleum Company.

10) Project of developing and enhancing the production efficiency in Saaban/Jarnouf and Azraq/Maleh fields in Syria
ENPPI acquired an international bid by Alfurat Petroleum Company to run the project of constructing two units of vapor recovery (VRU) with a capacity of four MMSCF, besides renovating control systems and electricity. This project was completed in January 2003.

11) Gas processing plant project in Syria
Syrian Hayan Company for Oil, a joint venture between Syrian Petroleum Company and Croatian INA, chose ENPPI to carry out the engineering designs and technical specs for its gas processing plant with a capacity of three MMSCFD of gas daily and 1,200 cubic meters of recovered condensates from a group of gas and condensates producing fields discovered near Palmyra city. The process of preparing basic design necessitates a 5-month time period.

12) Maintenance services for Arab countries
Alexandria Petroleum Maintenance Company (Petromaint) presents a variety of its maintenance services specialized in production and refining plants for petroleum, petrochemicals and gas based on the international conditions for a number of Arab countries, including Sudan and Libya.
Moreover, the company has established an office in Libya in association with Sun Egypt in order to introduce its petroleum services in the Libyan market.
Sun Egypt signed two contracts for technical maintenance of the compressor stations owned by Libyan Sirt Company. Besides, it participates with the Arabian Company for Projects and Maintenance in Saudi Arabia to offer its services and Egyptian expertise to the Saudi petroleum sector.

13) Construction of compressed natural gas (CNG) plants and engine converting stations
The Egyptian International Company for Gas Technology (GasTech) has signed a contract to conduct the project of engine conversion through the establishment of a joint venture for gas distribution.
With the task of establishing engine conversion into gas, Car Gas Egypt signed a number of memorandums of understanding with Abu Dhabi and Nigeria to implement such projects in the two countries.
Car Gas has also agreed to offer its services and technical advice to Malaysia in the same field.

14) Projects of shipment, distribution and natural gas marketing in Syria and Jordan
Gas Misr participates in projects of shipment, marketing and distribution of natural gas in Syria. A memorandum of understanding was signed between the Jordanian-Egyptian Al-Fajr company and the Jordanian Al-Aqaba Development Corporation to develop and increase the use of natural gas in Al-Aqaba.

15) Expansion of drilling activities in Saudi Arabia and Syria
For seven years, Egyptian Drilling Company (EDC) has been working in Saudi Arabia in cooperation with Saudi Aramco. EDC received five contracts for land rigs in Saudi, in which EDC ranked fourth in terms of activities, with a share of 17.7% of the Saudi market. The company’s total investment counted for $37.3 million during 2005/2006. EDC fulfilled its mission in three water injection wells and in Aramco’s annual evaluation, it was classified as the pioneer in technical proficiency compared to other foreign companies operating in Saudi Arabia.
Concerning its operations in Syria, the company signed an agreement with Alforat Petroleum Company to acquire one of EDC’s rigs operating in Syria, with total investments of $5 million.

16) Fabrication and erection of a loading platform in Daba, Saudi Arabia
The Arabian company for Projects and Maintenance acquired a $25 million-contract to fabricate and erect a loading platform for petroleum products in the region of Daba in Saudi Arabia. The project includes a 7,800 cubic feet platform, three loading arms, hydraulic tunnel, five fire fighting pumps, a 20-feet surveillance tower and a control room.
It is worth mentioning that Petrojet, Petroleum Marine Services (PMS) and Misr Maintenance Co. holds 60% interest share of the Arabian Company.
The project’s components were manufactured in Petrojet’s workshop in Gabal Alzeit located in the Gulf of Suez and were shipped through the Red Sea. The platform had been erected in a non traditional method, Float over Method, which was used for the first time Saudi Arabia.

17) Yanbu Gas Plant Expansion Project
Last March, ENPPI and Petrojet were assigned by Saudi Aramco to implement the Yanbu Gas plant expansion. Their list of missions includes developing the gas plant, increasing its production capacity from 390,000 bpd to 585,000 bpd depending on two units only for ethane, propane, butane, isopentane and natural gas. Also, the two companies will be responsible for establishing an extra de-ethanizer unit with a capacity of 195,000 bpd of LNG to sustain Aramco’s plan for the petrochemicals industry in Yanbu and Rabegh. Moreover, the agreement incorporates providing heat exchanger towers, pumps, compressors, refrigeration unit, power station and control system.
ENPPI will focus on the engineering procurement construction (EPC) and operating tests, besides being the project’s general contractor.

18) Khurasaniyah Gas Plant Project
ENPPI and Betchel International Company signed an agreement to construct a gas treatment and processing unit for Saudi Aramco in Khurasaniyah.
This unit will be established through gas and ethane vapor recovery units with a capacity of 1000 million cubic feet of natural gas per day.
ENPPI’s engineers will be responsible for the implementation of engineering designs as a sub contractor at Betchel’s offices in the United Kingdom.

19) Upgrade facilities at Al-Hout Field in Saudi Arabia
A consortium of ENPPI and Petrojet acquired Al-Khafgy Operations Co.’s international bid to conduct its LE400 million project of upgrading facilities at Al-Hout field.
The project targets the establishment of upgrade storage facilities to accommodate production increase to 50,000 bpd, besides establishing five tanks with a capacity ranging from 150 to 500,000 barrels, including pumps, mechanical tasks, electricity and fire fighting and control systems.
ENPPI’s list of responsibilities consists of producing detailed design, procurement, construction supervision, and commissioning and startup activities.
On the other hand, Petrojet will handle the fabrication and erection of tanks and the complete construction works.

20) LNG Storage Tanks Project in Yanbu, Saudi Arabia
Petrojet carries out the project of establishing three liquefied gas storage tanks in the region of Yanbu for Saudi Yansab through an agreement with Italian Technip.
The company is also in charge of the implementation of a 4,000 cubic meter spherical tank and a 2,500 cubic meter vertical tank. The project, including mechanical activities, welding, testing and painting is due to be complete during the last quarter of 2007.

21) Safaniyah’s Water treatment and injection labs expansion project
ENPPI acquired Saudi Aramco’s bid to conduct a complete project of expanding water treatment and injection labs. The project will be based on enlarging gas extraction labs from heavy Arabic crude in Safaniyah. It also includes the construction of Low Pressure Production Trap (LPPT) for three phase separation, six units of CPI and eight units of IGF designed to accommodate the expected quantities. As for the extracted water, it will be shipped in a 24″ diameter pipeline, 9 km length, and will be injected into wells through four giant pumps.
ENPPI’s framework consists of preparing basic and detailed engineering designs, procurement services, construction works as general contractor, operating tests and technical assistance in operation and project’s general management.

22) A new branch for ENPPI in Khobar
In order to expand its services and develop its activities, ENPPI has inaugurated a branch in Khobar, in Saudi Arabia through which it will also be able to follow-up on its current projects there.

23) New branches for Petrojet in various Arab Countries
Petrojet has inaugurated seven offices in Jordan, Libya, Sudan, Algeria, Yemen, Saudi Arabia and Qatar with the aim of acquiring more projects in different areas of the Arab world.

24) Safaniyah Project in the Arabian Gulf
Petroleum Marine Services (PMS) acquired Saudi Aramco’s bid to conduct the Safaniyah project, which landmarks the first venture for an Egyptian company to carry out petroleum marine projects in the Arabian Gulf.
PMS will rehabilitate the fields of Safaniyah, Bery and Morgan and upload 72 km crude transfer lines, 57km marine cables, 12km rigid pipes at a depth of 50m below sea level.
PMS’ share counts for $100 million out of the $107 million agreement.

25) Upgrading Khafji field in the Arabian Gulf (First Phase)
The Egyptian consortium, Petrojet, ENPPI and Petroleum Marine Services (PMS), acquired a $722 million contract to design, procure, fabricate, ship and erect platforms and marine pipelines, besides upgrading offshore facilities at crude oil producing wells in Al-Khafji region.
The project embraces the implementation of engineering, procurement, fabrication and erection works for six offshore platforms in addition to the designing, procurement and loading of 110 km marine lines, with widths of 28″, 36″ and 42″ and an 8km marine cable, 6″ wide.

26) Cooling Projects in Jordan
Egyptian Co. for Refrigeration by Natural Gas (GASCOOL) acquired two cooling projects in Jordan. The first is Fajr 1, to cool electricity stations and control rooms of gas compressing units in Aqaba and Rehab in Jordan at a refrigeration capacity of 140 tons. The second is Fajr 2, which aims at cooling the Jordanian-Egyptian Company Fajr’s administration buildings in Aqaba at a refrigeration capacity of 60 tons.

27) Olefin Plant Project -Ras Lafan, Qatar
Petrojet signed a contract to execute all civil and mechanical works of utility area for Al-Olifin station in the Ras Lafan region, located on the Arabian Gulf for the French Technip Company.

28) Two projects for pipelines El Hamra- Skikda, Algeria
For the first time in Algeria, Petrojet acquired a bid to execute two 30″ crude pipelines for Algerian Sonatrack Company, including a 340km line starting from Haoud el Hamra near Hassi Messaoud, south Algeria and ending at SP3 point in central Algeria that presents the beginning of the second line.
The second line is 310 km long and goes north to the pumping station in Skikda.
Petrojet’s list of missions includes design and procurement works, welding, coating of weld joints, engineering inspection, hydraulic test, in addition to the implementation of all civil and mechanical tasks for 57 different valve rooms, design, procurement and erection cathodic protection system and fiber optics cable and final complete operation of the pipeline.

29) Civil, erection and construction works at Al-gia electricity station
Petrojet was granted the approval of the Lebanese General Ministers’ Council to conduct civil, erection and construction works for three fuel storage tanks with a total capacity of 25,000 cubic meters and two 4,000 cubic meter-water tanks in addition to the execution of a tank farm in Al-gia electricity station, which is worth $15.3 million.

30) Engineering works agreement with PDVSA-GAS, Venezuela
ENPPI has signed a two-year agreement with PDVSA-GAS Co., Venzuela’s gas holding company for engineering works.

31) Signing agreements with PDVSA-GAS, Venezuela
Based on the cooperation agreement signed between Egypt and Venezuela, ENPPI signed a number of agreements with PDVSA-GAS to implement detailed and basic engineering designs, provide equipments’ purchase services and exchange expertise through training PDVSA-GAS engineers.
The goal behind this project is to add a fourth unit to the LNG train in the area of San Kawaken to produce an extra 1,000 MMSCFD of natural gas.
The LE180million project will be divided into two phases. The first aims at extracting natural gas liquids at a production capacity of 63,000 bpd and ship it to a gas products processing plant, located 110km from San Kawaken plant.
The second phase focuses on the production of Ethane and Propane mixture to meet the needs of petrochemicals projects in the region. In this phase, the production of LNG mixture increases to 20,000 bpd, reaching a total production of 83,000 bpd. The estimated value of the LNG plant project is approximately $350 million.

Translated by Yomna Bassiouni

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