Capital projects and contracts - July 11th 2014

Over the course of the last seven days we have seen Larsen & Toubro win a major airport construction contract; ABB sign a bumper USD546 million electrification deal; Maersk Oil divest USD1.7 billion of Brazilian oil and gas assets; and BMW confirm that it will build a USD1 billion manufacturing facility in Mexico.

EPC conglomerate Punj Lloyd has inked a USD236 million deal with Kuwait National Petroleum Company to design, engineer, procure and construct 11 floating roof product tanks.

The 228,000 cu m tanks will be delivered with allied civil works, interconnecting piping, loading points, substation electrical systems, amongst other essential services.

http://www.punjlloyd.com/sites/default/files/pdf/With Rs 1400 crore 0SD 236.09 million%29 Tankage order Punj Lloyd ventures into a new country in Kuwait.pdf

CB&I secured a contract valued in excess of USD60 million from Petrofac Saudi Arabia Co. Ltd for the EPC of product storage spheres at a grassroots refinery being constructed in Saudi Arabia.

http://www.cbi.com/investor-relations/news-releases

Larsen & Toubro's construction division has won new order for the construction of the Kannur International Airport in Kerla. Preparatory works at the greenfield site are already underway.

http://www.larsentoubro.com/lntcorporate/LnT_PRS/PDF/LTConstructionWinsOrdersValuedAt1459Cr-03072014_-8587972448855267899.pdf

L&T's civil infrastructure arm also bagged a 1,547 crore contract to design and build a cable stayed bridge across the Mandovi river in Panaji. The 900 m long four-lane bridge will feature a 550 m cable stay portion and 3.2 km long viaduct approach.

http://www.larsentoubro.com/lntcorporate/LnT_PRS/PDF/LTConstructionWinsOrdersValued2002 Crs-02072014_-8587973087945411357.pdf

A consortium of China's CMC and SU Power with subsidiaries of Iran's MAPNA has been awarded a contract to install and maintain overhead electrification equipment on the 926 km Tehran - Mashhad line, and procure 70 electric locomotives.

http://www.railwaygazette.com/news/single-view/view/chinese-backed-tehran-mashhad-electrification-contract-signed.html

ABB has won an order worth approximately USD400 million from NSP Maritime Link Inc to supply a high-voltage direct current (HVDC) power transmission solution creating the first electricity link between the island of Newfoundland and the North American power grid.

http://www.abb.com/cawp/seitp202/894be52ef97659c9c1257d10003d3807.aspx

Alstom has penned a USD163 million deal with Tractebel Energia Brasil to supply 36 ECO 122 wind turbines to the Trairí II project, located in Ceará State, Northeast of Brazil. The commissioning of Trairí project is scheduled for mid-2016 and will generate 97.2MW.

For the first time, Alstom's wind turbines will feature 119-metre concrete towers delivered in consortium with Freyssinet. This new tower will be made of precast concrete sections to be erected using a craneless installation method based on proven hydraulic lifting techniques used in civil engineering.

http://www.alstom.com/en/press-centre/2014/7/alstom-to-supply-36-units-of-eco-122-wind-turbines-for-trairi-ii-project/

Megalim Solar Power Ltd - a special purpose company formed by Alstom (25.05 percent), BrightSource (25.05 percent) and NOY Infrastructure & Energy Investment Fund (49.9 percent) - has obtained financial support from the European Investment Bank and Bank Hapoalim for the construction and operation of the Ashalim Thermal Solar Power Station in Israel.

http://www.alstom.com/en/press-centre/2014/7/alstom-brightsource-energy-and-noy-infrastructure-and-energy-fund-close-financing-for-israels-largest-solar-power-plant-/

Gamesa and AREVA have signed a binding agreement for the creation of a joint venture in the promising offshore wind energy industry. The new company is positioning itself to become a leading player in the offshore wind segment with the objective of garnering a market share close to 20 percent in Europe by 2020.

http://www.areva.com/scripts/news/publigen/content/templates/Show.asp?P=10257&L=EN

Car manufacturer BMW will build a USD1 billion manufacturing plant in San Luis Potosi, Mexico. The facility is scheduled to come online in 2019 and will have an annual capacity of 150,000 units.

https://www.press.bmwgroup.com/global/pressDetail.html?title=bmw-group-to-build-plant-in-mexico&outputChannelId=6&id=T0186123EN&left_menu_item=node__803
 
Skanska has signed a USD142.8 million million contract with Locum AB to rebuild and expand Södertälje hospital, Sweden.

http://www.group.skanska.com/en/Media/Display-news/?nid=Fq1rIb34

The company, in joint venture with Traylor Brothers, Inc., also signed a contract with the Los Angeles County Metropolitan Transportation Authority to construct an underground transitway in downtown Los Angeles. The total contract value for the joint venture company - Regional Connector Constructors - is USD918 million.

http://www.group.skanska.com/en/Media/Display-news/?nid=NrUXB94x

Skanska also signed a USD127 million EPC contract for a co-generation plant in the Midwest region of the United States. The project, which is a Skanska-led joint venture with Burns & McDonnell, includes the EPC of a new gas turbine for power generation and a heat recovery steam generator for steam production. Work commenced in June 2014 with anticipated completion in July 2017.

http://www.group.skanska.com/en/Media/Display-news/?nid=FgdCRVx9

Skovgaard Invest ApS, Energicenter Nord and MHI Vestas Offshore Wind (MVOW) have an agreement for the purchase of four V164-8.0 MW offshore wind turbines for the Velling Mærsk project in Western Denmark.

http://www.mhivestasoffshore.com/media-and-news/news/2014/03-07-2014

Technip has inked a contract with Total E&P UK for the fabrication and installation of pipelines and associated infrastructure for the Eradour Subsea Development.

http://www.technip.com/en/press/technip-awarded-large-contract-edradour-subsea-development-west-shetlands-uk

Tullow Oil revealed that the Hanssen wildcat well offshore Norway has encountered a 20-25 m oil bearing sandstone with good reservoir properties in the main target (Stø Formation).

http://www.tullowoil.com/index.asp?pageid=137&newsid=903

The UK Crown Estate has awarded seabed rights for six new wave and tidal current demonstration zones, and five new wave and tidal current sites, revealed HydroWorld.com

http://www.hydroworld.com/articles/2014/07/crown-estate-awards-seabed-rights-for-ocean-energy-development.html

Maersk Oil - the fully owned subsidiary of A.P. Møller-Maersk - this week decided to pull out of the Brazilian exploration market, writing off its USD1.7 billion investment in the Wahoo and Itaipu oil fields, while divesting its shares in the Polvo field.

The three Campos basin fields were acquired in 2011 from South Korea's SK Energy Co. Ltd. for USD2.4 billion.

Group ceo, Nils S. Andersen, commented: "The SK Energy investment was made at a time when the outlook for the oil industry and oil prices were more positive than today and we had growth ambitions for our Brazilian oil business. We have now adapted our strategy to the situation we see today, but it is of course clearly unsatisfactory that the oil volumes in the acquired fields Itaipu and Wahoo after appraisal drilling has proved to be in the low end of our original expectations. Going forward, this strategy adjustment and value impairment allow Maersk Oil to fully focus on its growth strategy".

Maersk Oil says that the sites have been assessed and have a lower value than initially expected after appraisal drilling, with increased development costs and low oil prices contributing also contributing to Maersk Oil decision to pull out of the market.

http://www.maerskoil.com/Media/Newsroom/Pages/ImpairmentofBrazilianoilassets.aspx

Australia headquartered Linc Energy has secured the necessary approvals to begin an underground coal gasification project in Poland, which could yield up to 800 billion cu m of pipeline-quality gas over an 80-year period.

http://lincenergy.listedcompany.com/newsroom/20140707_074614_TI6_L7FS99DJCJDJQIHS.1.pdf

Siemens Metals Technologies signed a contract with Mexican steel producer Altos Hornos de Mexico to supply a 150-tonne, twin RH vacuum degassing plant with mechanical vacuum pumps for converter Steel Works # 2 in Monclova.

http://www.siemens.com/press/en/pressrelease/?press=/en/pressrelease/2014/industry/metals-technologies/imt201407658.htm&content

The Waterberg Coal Company has appointed ARDBEL as the engineering, procurement and construction contractor for the Waterberg Coal Project in South Africa.

http://coal.steelguru.com/africa/16582/the_waterberg_coal_company_appoints_epc_contractor_in_south_africa

This week, Siemens celebrated the installation of 10 GW of wind power capacity in the Americas, having erected and commissioned more than 5,600 turbines in the USA, Canada and South America.

http://www.siemens.com/press/en/pressrelease/?press=/en/pressrelease/2014/energy/wind-power/ewp201407055.htm&content

BMW to build a USD1 billion manufacturing plant in Mexico.