• Larsen & Toubro bids low for Oman road contract – Contract calls for upgrade of road between BidBid and Sur.
• Gulf Petrochemical Services bids low on Salalah gas loop line project.
• Omanoil showcases turnkey solutions for fuel supply and management at INFRA Oman 2013.
• Carillion Alawi wins Oman hotel construction contract – New Kempinski hotel will be built at the Wave development outside Muscat.
• Contractors invited to bid for Oman substation contract – Work will involve building substation in the South Batinah governorate.
• Oman invites bids for power station upgrade – Work will involve rehabilitating power station in Dhofar governorate.
• Sohar refinery award expected mid-October – Oman Sohar refinery contract expected to go to the lowest bidder.
• Oman seeks bids for $800m road projects – Contractors sought to widen Omani road to four-lane dual carriageway between Adam and Thumrait.
• Al-Futtaim inks deal to build new mall in Oman – New mall will be the largest in Muscat.
• Omanoil showcases turnkey solutions for fuel supply and management at INFRA Oman 2013.
• Oman: Free zone infrastructure works.
• Design, supply, installation and commissioning of a primary and secondary radar system for Salalah airport. Oman tenders for Salalah airport radar system – Deadline set for 9 December.
Author: Chemist
Qatar Oil and Gas Market Update Nov, 2013
• Qatar receives bids for electricity company headquarters.
• Barzan Gas Development: Onshore: Phase 1.
• Japanese export credit agency mulls Qatar’s $3bn power plant support.
• Maersk Oil signs drilling deals with GDI in Qatar – Maersk Oil Qatar signed two new drilling rig contracts worth US$206mn with Gulf Drilling International (GDI) for the Al Shaheen field.
• Qatar becomes full owner of its stock exchange – Qatar Holding buys remaining 12 per cent stake in exchange.
• Hill wins contract for Qatar museum – Hill to serve as construction manager for new National Museum of Qatar.
• Education City: Sidra Medical Care and Research Centre.
Kuwait Oil and Gas Market Update Nov, 2013
• BP and Kuwait Oil Company on the Future of Digital Oilfields.
• The inaugural Society of Petroleum Engineers’ Kuwait Oil and Gas Show and Conference (KOGS 2013) is set to be the largest gathering of the oil and gas industry experts ever seen in Kuwait.
• Kuwate: By 2020, it aims to reach a production capacity of four million barrels per day and it is estimated that it has allocated $75 billion for the development of oil-related projects.
• Bilateral Trade Between India, Kuwait Over $17.6 Bln During 2012-13
• Kuwait Oil Company Opens Up Bidding Process for Oil Lakes
• New hospital projects are dominating the construction sector in Kuwait.
• Kuwait extends bid deadline for affordable housing project.
• Kuwait invites bids for electricity lines contract.
• Kuwait tenders Lower Fars heavy oil deal.
• Foster Wheeler wins Kuwait petrochemicals study.
• Kuwait’s Agility wins Afghanistan airport contracts.
• Kuwaiti Oil Deal could end up like the controversial Nigerian and Japanese Oil Agreements which were characterized by lack of proper accountability and transparency.
Saudi Arabian Oil and Gas Market Update Nov, 2013
• Local contractor wins Jeddah substation deal – Substation will be located near Jeddah airport.
• UACC Sila ex Jubail
The first diesel cargo will be loaded by Total and will most likely have a sulphur content of 500 parts-per-million (ppm), the sources added. It could head to East Africa, though details are not firm yet, one of the sources said. It looks like it will be 500 ppm but the refinery is still processing,” the source added. Aramco Trading is expected to load its share of the cargo after Total, in the first half of October, a second source said. The refinery is expected to eventually start shipping 10 ppm sulphur diesel cargoes, which are compatible for the European market, once its secondary units are running, the source added.
• Potential jet fuel production from SATORP is estimated to be less than 100,000 mt/month, a trade source from the Middle East suggested. Separately, another trader said: “I would think it will need at least another three months for the refinery to stabilize before we see steady export volumes.”
• Local contractor wins Jeddah port electricity deal – Nesma Electric to install 110kV substation.
• Apicorp acquires stake in Saudi-based Taqa.
• Saudi aviation authority raises $4bn sukuk.
• Food conglomerate Savola will use capital raised to buy stakes in its subsidiaries
• JGC Corporation sole bidder for package at $3bn Saudi Aramco refinery.
• Siemens confirms value of Riyadh metro contract.
• Saudi Railway Company invites interest in North-South line project.
• Ras Al-Khair to Riyadh Water Transmission Pipeline: Phase 2 and 3 – Saline Water Conversion Corporation in Saudi Arabia is building pipelines to transmit desalinated water from plants at Shoaiba, Ras al-Khair and Jubail.
• Marafiq is building an independent water and power project in Saudi Arabia to supply Yanbu Industrial City.
• Yanbu Aramco Sinopec Refining’s facility is one of two new plants that will increase the kingdom’s supply of petroleum products to the international market.
• Prophet Mosque Expansion in Medina – The expansion will accomodate up to one million worshippers.
• A joint venture between Saudi Aramco and Sumitomo Chemical to expand the existing ethane cracker and aromatics complex.
• Saudi Arabia Group I Base Oil quality grades find its way into UAE market.
• Saudi Arabian Oil Co.cut differentials used in determining the official selling prices for its light grades to customers in Asia.
• Saudi Aramco to release design tender for shale gas – Saudi Arabia to be first country in the Middle East to develop shale.
• Acwa Power to sign Rabigh 2 IPP contract by end of October – Configuration of plant has changed since local developer was selected as preferred bidder in January.
• SNC Lavalin and MECS favourites for Maaden sulphur package – Maaden package includes power plant construction at planned $7bn phosphates city in Saudi Arabia.
• Acwa prepares for initial public offering in late 2014 – Saudi power developer also planning sukuk issue before end of 2013.
• Saudi Aramco prequalifying contractors for Jizan water system.
• Saudi Aramco Cuts November Light Crude Offsets to U.S., Asia.
• ENOC sets up oil & gas logistics venture in Saudi Arabia – UAE fuel retailer Emirates National Oil Company (ENOC) has inked a deal with Tristar Transport, a Dubai-based multi-modal liquid logistics service provider with a global network, to set up a new joint venture (JV) in Saudi Arabia.
U.A.E Oil and Gas Market Update Nov, 2013
• Gunal wins $185m construction contract on Dubai Water Canal.
• SNC-Lavalin wins Zirku crude processing expansion contract.
• UK’s Turner & Townsend wins Abu Dhabi airport contract.
• Dubai leads growth in hotels sector.
• UAE credit growth hits highest level since financial crisis.
• Rail awards push up value of Top 100 Middle East Projects.
• GCC gas demand to rival Northwestern Europe by 2030.
• Middle East contracts awarded: September 2013 – Over $8bn awarded in September in the Middle East.
• Petrofac scores biggest gain in GCC top 10 oil and gas contractor rankings – UK-based firm moves to second place after string of UAE wins.
• DIFC planning massive real estate expansion.
• International Finance Corporation looks to Gulf for Middle East growth.
• RTA prepares to tender more Dubai Water Canal contracts.
• Total building offshore chemical oil recovery plant in Abu Dhabi.
• Abu Dhabi to refinance sewerage scheme.
• Abu Dhabi prepares to receive onshore concession bids Shuweihat 3 IPP.
• Shah Gas Development: Offsite & Utilities (Gas Process Plant).
• Ruwais Refinery Expansion Project: Process Package 1 (Crude Distillation Unit).
• Prequalification starts for W Hotel on Palm Jumeirah.
• Contractors approached for Dubai’s Jewel of the Creek.
• Sonatrach buys Petroceltic’s gas field stake for $180m – State-run oil company Sonatrach has purchased Irish exploration firm Petroceltic 18.3 per cent stake in an Algerian gas field for US$180 million.
• Base Oil Group I prices in UAE Market seems to be stable.
• Middle East automotive marke t projected to grow 20% yearly over next five years.
• Emarat Discusses Development of Cooperation with ExxonMobil.
• Fujairah terminal project moves on to third phase – Second phase has added 235,000 cubic metres of storage to the oil facility.
• Middle East Lubricant producers have obtained internationally recognized certifications and licenses.
• Restrictions to STS operations at offshore anchorage.
STS operation at Fujairah Offshore Anchorage Area is restricted to tankers classed under IACS members and subject to complying with below given conditions:
1. Multiple STS Operations are not permitted to tankers under non bunkering companies and such tankers must leave from Fujairah after STS operation (tankers under companies holding valid Bunkering License from the Government of Fujairah is exempted).
2. Valid STS plan and STS Hose Test Certificates need to be submitted along with Ship’s Certificates as per Notice of Mariners No. 148.
3. Certificate of Origin & Bill of Lading of cargo need to be submitted in advance prior STS operation.
4. Vessel must hold valid Last Port clearance.
5. Confirmation from ship master that his ship did not conduct STS cargo operation at High Seas.
• IK Investment Partners to acquire DNV Petroleum Services from Det Norske Veritas
Funds managed by IK Investment Partners (IK) have entered into an agreement with the Norwegian foundation Det Norske Veritas (DNV), to acquire its subsidiary DNV Petroleum Services (DNVPS), a global leader in fuel management services. Financial details for the transaction were not disclosed.
• Loading delays push up Rotterdam HSFO bunker market: trade
1. High sulfur bunker fuel prices at the port of Rotterdam have soared against high sulfur fuel oil this week, amid loading delays caused by shortages of supply, sources said Wednesday.
2. Traders said Wednesday that the market is experiencing a shortage of HSFO after a buying spree in August and September when deliveries from Russia slowed down, adding that about 40 barges are waiting to load at the port of Rotterdam.
3. Prompt HSFO bunker deliveries are being postponed until the weekend, with most suppliers of the fuel only quoting from October 4. Some barges are being redirected towards Antwerp, where there has been slightly more bunker fuel available for loading, sources said.
• Occidental looks to sell 40% stake in Mideast unit for $8b – SAN FRANCISCO Occidental Petroleum Corporation is looking to sell 40 per cent of its Middle East operations for $8 billion on Friday, as Oxy seeks investment in the unit as part of a broader plan to split up the company.
• Base Oil Group II availability in Middle East from Korea and Taiwan may increase in couple of weeks after a long lull.
• Exxon Mobil’s gas turbine oil Mobil DTE 932 GT reduces the risk of varnish.
• TUV Rheinland wins contract for Dubai metro.
Types of Aviation Fuel
TYPES OF AVIATION TURBINE FUEL (Generally Names – JET FUEL)
Types of CIVIL JET FUELS
Aviation turbine fuels are used for powering jet and turbo-prop engined aircraft and are not to be confused with Avgas. Outside former communist areas, there are currently two main grades of turbine fuel in use in civil commercial aviation : Jet A-1 and Jet A, both are kerosene type fuels. There is another grade of jet fuel, Jet B which is a wide cut kerosene (a blend of gasoline and kerosene) but it is rarely used except in very cold climates.
JET A-1
Jet A-1 is a kerosene grade of fuel suitable for most turbine engined aircraft. It is produced to a stringent internationally agreed standard, has a flash point above 38°C (100°F) and a freeze point maximum of -47°C. It is widely available outside the U.S.A. Jet A-1 meets the requirements of British specification DEF STAN 91-91 (Jet A-1), (formerly DERD 2494 (AVTUR)), ASTM specification D1655 (Jet A-1) and IATA Guidance Material (Kerosine Type), NATO Code F-35.
JET A
Jet A is a similar kerosene type of fuel, produced to an ASTM specification and normally only available in the U.S.A. It has the same flash point as Jet A-1 but a higher freeze point maximum (-40°C). It is supplied against the ASTM D1655 (Jet A) specification.
JET B
Jet B is a distillate covering the naphtha and kerosene fractions. It can be used as an alternative to Jet A-1 but because it is more difficult to handle (higher flammability), there is only significant demand in very cold climates where its better cold weather performance is important. In Canada it is supplied against the Canadian Specification CAN/CGSB 3.23
FUEL USED OF MILITARY AIRCRAFTS
JP-4
JP-4 is the military equivalent of Jet B with the addition of corrosion inhibitor and anti-icing additives; it meets the requirements of the U.S. Military Specification MIL-DTL-5624U Grade JP-4. (As of Jan 5, 2004, JP-4 and 5 meet the same US Military Specification). JP-4 also meets the requirements of the British Specification DEF STAN 91-88 AVTAG/FSII (formerly DERD 2454),where FSII stands for Fuel Systems Icing Inhibitor. NATO Code F-40.
JP-5
JP-5 is a high flash point kerosene meeting the requirements of the U.S. Military Specification MIL-DTL-5624U Grade JP-5 (as of Jan 5, 2004, JP-4 and 5 meet the same US Military Specification). JP-5 also meets the requirements of the British Specification DEF STAN 91-86 AVCAT/FSII (formerly DERD 2452). NATO Code F-44.
JP-8
JP-8 is the military equivalent of Jet A-1 with the addition of corrosion inhibitor and anti-icing additives; it meets the requirements of the U.S. Military Specification MIL-DTL-83133E. JP-8 also meets the requirements of the British Specification DEF STAN 91-87 AVTUR/FSII (formerly DERD 2453). NATO Code F-34.
SOME OF THE AVIATION FUEL ADDITIVES
Aviation fuel additives are compounds added to the fuel in very small quantities, usually measurable only in parts per million, to provide special or improved qualities. The quantity to be added and approval for its use in various grades of fuel is strictly controlled by the appropriate specifications.
A few additives in common use are as follows:
1. Anti-knock additives reduce the tendency of gasoline to detonate. Tetra-ethyl lead (TEL) is the only approved anti-knock additive for aviation use and has been used in motor and aviation gasolines since the early 1930s.
2. Anti-oxidants prevent the formation of gum deposits on fuel system components caused by oxidation of the fuel in storage and also inhibit the formation of peroxide compounds in certain jet fuels.
3. Static dissipater additives reduce the hazardous effects of static electricity generated by movement of fuel through modern high flow-rate fuel transfer systems. Static dissipater additives do not reduce the need for `bonding’ to ensure electrical continuity between metal components (e.g. aircraft and fuelling equipment) nor do they influence hazards from lightning strikes.
4. Corrosion inhibitors protect ferrous metals in fuel handling systems, such as pipelines and fuel storage tanks, from corrosion. Some corrosion inhibitors also improve the lubricating properties (lubricity) of certain jet fuels.
5. Fuel System Icing Inhibitors (Anti-icing additives) reduce the freezing point of water precipitated from jet fuels due to cooling at high altitudes and prevent the formation of ice crystals which restrict the flow of fuel to the engine. This type of additive does not affect the freezing point of the fuel itself. Anti-icing additives can also provide some protection against microbiological growth in jet fuel.
6. Metal de-activators suppress the catalytic effect which some metals, particularly copper, have on fuel oxidation.
7. Biocide additives are sometimes used to combat microbiological growths in jet fuel, often by direct addition to aircraft tanks; as indicated above some anti-icing additives appear to possess biocidal properties.
8. Thermal Stability Improver additives are sometimes used in military JP-8 fuel, to produce a grade referred to as JP-8+100, to inhibit deposit formation in the high temperature areas of the aircraft fuel system.
UNDERSTANDING POWER BOOSTING FLUIDS
It used to be commonplace for large piston engines to require special fluids to increase their take-off power. Similar injection systems are also incorporated in some turbo-jet and turbo-prop engines. The power increase is achieved by cooling the air consumed, to raise its density and thereby increase the weight of air available for combustion. This effect can be obtained by using water alone but it is usual to inject a mixture of methanol and water to produce a greater degree of evaporative cooling and also to provide additional fuel energy.
For piston engines, methanol/water mixtures are used and these may have 1 percent of a corrosion inhibiting oil added. The injection system may be used to compensate for the power lost when operating under high temperature and/or high altitude conditions (i.e. with low air densities) or to obtain increased take-off power under normal atmospheric conditions, by permitting higher boost pressure for a short period.
Both water alone and methanol/water mixtures are used in gas turbine engines, principally to restore the take-off power (or thrust) lost when operating under low air density conditions. Use of a corrosion inhibitor in power boost fluids supplied for these engines is not permitted.
The methanol and water used must be of very high quality to avoid formation of engine deposits. The water must be either demineralised or distilled and the only adulterant permitted in the methanol is up to 0.5 per cent of pyridine if required by local regulations as a de-naturant. In the past there were several different grades of water/methanol mixtures, e.g. 45/55/0 for turbine engines, 50/50/0 for piston engines (this was also available with 1% corrosion inhibiting oil and was designated 50/50/1) and 60/40/0, however, with decreasing demand Shell now only supplies 45/55/0. The table shows the principal characteristics of Shell demineralised water and of the commonly used methanol/water blend.
WRITE US TODAY IF YOU NEED FUEL TESTING/SAMPLING OR INSPECTIONS
Latest OPEC oil production figures Oct 2013
OPEC oil production figures covering entire month of September 2013
- OPEC’s crude oil production fell 110,000 b/d to 30.34mn b/d in July, down from 30.45mn b/d in
June, according to the latest (8 August) Platts survey of OPEC and oil industry officials and analysts. A
130,000 b/d increase from OPEC kingpin Saudi Arabia failed to offset the 200,000 b/d
month¬over¬month crude output drop in Libya, where production and exports have been affected by
strikes about pay and conditions as well as protesters demanding oil sector employment. Libyan crude
output was estimated at an average 1mn b/d in July. Libya’s main oil export terminals at Es Sider, Ras
Lanuf and Zueitina remained closed in early August. Crude exports had dropped by more than 70% to
just 330,000 b/d. Platts in early August that output had dropped to around 820,000 b/d. - Output increases, albeit small, were seen in Kuwait and in Nigeria during July, where the Trans¬Niger pipeline briefly came back onstream before being shut down again after a new leak.
- Meanwhile, output from sanctions¬strapped Iran dipped by 20,000 b/d to 2.66mn b/d. Iraqi
production fell for the third consecutive month, to 2.98mn b/d in July, down from 3mn b/d in June,
3.1mn b/d in May and 3.15mn b/d in April. Angolan production fell by 30,000 b/d to 1.75mn b/d. - OPEC exceeded its overall production ceiling of 30mn b/d by 340,000 b/d in July. The group agreed at its Vienna meeting in June to maintain the ceiling established in January 2012 but which does not include individual country quotas.
World-wide Oil and Gas Market Update Oct 2013
Oil and Gas Market Update for covering entire month of September 2013
- POL price hike fuels Opposition’s walkout.
- Chemtura Petroleum Additives Business Announces Price Increase.
- Shell launch new centre at Imperial for research into fuels and lubricants.
- Shell Breaks Ground on Indonesian Lubricant Blending Plant
- Base Oil Group I prices in the Asian region firms up.
- Shell Breaks Ground on Bekasi Lubricant Plant.
- Base Oil SN ‐150 HPCL Ex‐ Refinery prices increased by 3% in September 2013 as compared to
previous month prices. - Global refinery output to grow despite faltering economy ‐ Despite the tough economic
conditions still plaguing Europe, world refinery throughput will rise as global demand for gasoline, jet
kerosene, gasoil and diesel products during the third quarter 2013 ramps up, according to the latest
forecast from research and consulting firm GlobalData. The new report states that demand for gasoline
this quarter will increase by 325 mbd (thousand barrels per day) over second quarter figures, while
gasoil and diesel demand will rise by 280 mbd over the prior quarter. - Myanmar region helped to improve power production ‐ Wood Group GTS has been awarded a
one year contract worth US$13 million by a power company in Myanmar to overhaul and upgrade three
GE Frame 6B gas turbines in operation in the country’s Yangon region. This is the first major contract win
for Wood Group GTS in Myanmar. The overhauls and upgrades are expected to improve the total output
of the gas turbines and provide increased reliability to Myanmar’s power production. - Dana Gas and Crescent Petroleum restore full LPG capacity in Kurdistan.
Russia Oil and Gas Market Update Oct 2013
Oil and Gas Market Update for covering entire month of September 2013
- Russian origin group I Base Oil prices increase marginally.
- Siemens secures contract for Yamal LNG – Siemens has secured a contract to deliver the key components for a power station that will
supply the future Yamal LNG production plant in northern Russia with electricity and heat. The company
will design, manufacture, factory test, deliver, install and commission eight SGT800 industrial gas
turbines as well as nine stepup transformers. Four of these turbines will also be equipped with waste
heat recovery units. The power plant will have an electrical output of 376 MWe. Located onshore, in the
Arctic area of the Yamal Peninsula in the north of Western Siberia, the Yamal LNG project is to develop
the wet gas resources of the YamalNenets region. Shareholders of the plant operator Yamal LNG are the
Russian electricity company Novatek (80%) and Total of France (20%).
Africa Oil and Gas Market Update Oct 2013
Oil and Gas Market Update for covering entire month of September 2013
- Algeria invites bids for substation contracts ‐ Work will involve supplying and installing
substations at four locations in Algeria. - OMV farms into Madagascar offshore block ‐ OMV will invest in an offshore exploration block
west of Madagascar, the Austrian firm said in a statement without disclosing the value of the deal. OMV
will acquire a 40 per cent stake in the “Grand Prix” block from Canada’s Niko Resources Ltd. “This
acquisition is in line with OMV’s strategy “profitable growth” to develop a balanced Exploration &
Production portfolio and opportunities also in the sub‐Saharan African region,” OMV said in the
statement.