Baker Hughes, a GE company awarded subsea contract by Petrobel for Phase 2 development of Egypt's ‘super giant’ Zohr gas field
11 September 2017
In a signing ceremony hosted by H.E. Eng. Tarek El-Molla, Minister of Petroleum and Mineral Resources for Egypt, Baker Hughes, a GE company (NYSE: BHGE) announced a major subsea contract from Petrobel for phase two of the “supergiant” Zohr Gas Field situated in the Mediterranean Sea, off the Egyptian coast. The project underscores the company’s position as the world’s first and only integrated fullstream provider of cutting-edge subsea technology, products, services and digital solutions.
As a long-term partner to Egypt, BHGE will provide project management, engineering procurement, fabrication, construction, testing and transportation of a subsea production system, including seven manifolds, tie-in systems, long offset subsea and topside control systems, SemStar5 HIPPS (high integrity pressure protection) Systems, workover systems and tools, and will support the installation, commissioning and start-up operations.
H.E. Eng. Tarek El-Molla, Minister of Petroleum and Mineral Resources, Egypt, said: “Maximizing domestic energy resources and optimizing reliability of their supplies are core elements of Egypt’s vision. We are able to increase the value and efficiency of the sector by driving a sustainable and energy-efficient economy through the ministry’s Modernization Program in partnership with companies such as BHGE. The Zohr gas field is playing a major role in the development of Egypt’s domestic energy resources, revenue generation and economic growth.”
Lorenzo Simonelli, president and CEO, BHGE, said: “This landmark agreement reinforces our commitment to provide competitive offerings for our partners, strengthened by BHGE’s local presence and cutting-edge technology. The Zohr Field is one of the most significant developments of its kind, and through this project we can show the efficiency gains that such complex projects can achieve through our enhanced portfolio. This project has the potential to meet Egypt’s growing gas demand and save the country billions of dollars that would otherwise be spent on importing gas. Together with our partners, BHGE can support Egypt’s needs and vision for the energy sector and demonstrate its leadership in the subsea space.”
Petrobel is a joint venture between IEOC (an Eni subsidiary in Egypt) and Egyptian General Petroleum Corporation (EGPC) and is in charge of the development of Zohr Field on behalf of PetroSherouk, a joint venture between Egyptian Natural Gas Holding Company (EGAS), IEOC and BP.
Eng. Atef Hassan, Chairman and Managing Director, Petrobel, stated: “Partnering with BHGE on this project demonstrates the growing need for long-term service and equipment providers that complement our efforts in driving optimized production. The Zohr Field will contribute to the development and sustainability of Egypt’s resources, and BHGE’s investment and expertise across oilfield services and equipment will help us drive further efficiencies along the way.”
This project draws on the experience of BHGE in large bore, long offset gas fields and incorporates an integrated HIPPS system and positions BHGE as a market leader in this field. For the first time, BHGE will also provide 10 e-EHXT trees, manufactured at its subsea center of excellence in Aberdeen, Scotland. The trees were designed in collaboration with Eni as part of a standardization exercise, applying field-proven products and systems gained from previous projects with Eni on a range of successful deep-water projects in Africa. In addition, BHGE will provide wellheads via a separate contract awarded by Petrobel earlier this year.
The award underlines the global scope and breadth of BHGE’s fullstream portfolio and local capabilities, with engineering support for the project coming from the UK, Italy and Norway. The steel structures will be manufactured in Alexandria, supporting local employment in Egypt, as well as the UK, Norway and Italy. Project management services will also be supported from Egypt and from the UK. Leveraging decades of expertise in-country and growing its local manufacturing ecosystem, BHGE is committed to helping secure Egypt’s energy future through the development of local talent and efficiency-driven solutions.