The wire size and length for the accommodation unit is 90 mm by 450 m.
In other business Aker Solutions
acquired International Design Engineering
& Services Ltd. (IDEAS) a Glasgow-based
UK specialist engineering company that
developed software and technology for
analysis of oil and gas installations from
design through construction, operation, and
life extension. The technology can more effectively predict the lifetime of an installation
and help target maintenance and inspection
activities to increase the quality and precision of services, said Tore Sjursen, head of
Aker Solutions’ maintenance and modifications business. The companies did not
disclose financial details of the transaction.
Aker Solutions won a contract from
Caspian Drilling Co. Ltd. (CDC) to provide
a complete topside equipment package
for a new semi-submersible drilling rig in
Baku, Azerbaijan. The parties agreed not
to disclose the value of the order. Aker
Solutions has previously delivered drilling
equipment for eight rigs operating in the
Caspian Sea. Two are semi-submersibles
operated by CDC. Aker Solutions last
year opened a new facility in Baku to
improve its services in the region. The
rig equipment will be constructed and
assembled primarily at Aker Solutions’
facilities in Kristiansand and Asker,
Norway, as well as in Erkelenz, Germany.
Installation and commissioning will be
by the Caspian Shipyard Company Ltd.,
where Keppel Fels is the major shareholder. Delivery is scheduled for the
fourth quarter of 2016.
Irving, Tex., secured a front-end engineering and design contract for Sasol Ltd.’s
world-scale ethane cracker and associated
derivative chemicals facility at its Lake
Charles Chemical Complex in Louisiana.
Sasol said the project is to be the largest single manufacturing investment in
Louisiana history. Fluor will book $120
million for the FEED contract into backlog
in the second quarter. FEED work is under
SERVICES | SUPPLIERS
way and is expected to be completed late
this year. Individual engineering services
agreements for development of basic engineering packages have been concluded
by Sasol with Toyo Engineering Corp. for
the linear low density polyethylene plant,
Mitsui Engineering & Shipbuilding Co. Ltd
for the low density polyethylene plant, and
Samsung Engineering America Inc. for the
ethylene oxide and mono-ethylene glycol
units. The technologies of Technip Stone &
Webster Process Technology Inc., ExxonMobil Chemical Technology Licensing LLC,
Univation Technologies LLC, and Scientific
Design Co. Inc. have been selected for the
ethane cracker. It and associated facilities
will allow Sasol to expand its differentiated
derivatives business in the US. Project
start-up and completion is projected for
2017 with the expected production of 1. 5
million tons/year of ethylene with downstream derivative plants. Project work will
be led from Fluor’s Houston office with
assistance from its offices in southern
California and in Manila.
Carey cont’d from 92
Bakken and Western Canada. Adjustments were made,
compensating for costs shippers incur associated with securing diluent supplies and blending it with bitumen. Adjustments were also made for the time values of money,
reflecting the greater speed at which crude travels by rail.
Further adjustments were made to rail rates to include the
costs of leasing and loading tank cars.
Rail transportation is a cost effective competitor to pipelines for the transportation of crude oil and bitumen, particularly when railroads backhaul diluents to the origin market. Estimated rail transportation rates are based on sample
rates from unit trains reported in the Surface Transportation
Board waybill sample dataset, along with estimated cost of
the rail movement plus a return component.
Rail rates used 180% of variable cost of the rail move as a
forward-looking estimate of levels achievable with competitive pressures. This figure is referred to as the “jurisdictional
threshold,” since a US shipper cannot dispute the reasonableness of the rail transportation rate with the regulatory
agency for a movement unless the rate exceeds 180% of the
variable cost of that rail movement.
The reduced rail transportation rate for bitumen reflects
the higher relative quantity of bitumen railroads can move
because it doesn’t need to be diluted. The pipeline costs reflect the added cost incurred (relative to railroads) associated mixing diluent into the bitumen.
2. “Drilling Down On Crude Oil Price Differentials,” TD
Economics, Mar. 14, 2013.
3. “Crude On The Rails: In For The Long Haul,” Financial
Post, Aug. 24, 2012.
4. Van Loon, J., and Penty, R., “MEG’s Bitumen-by-Barge
Winning Over Investors: Corporate,” Bloomberg, Feb. 4, 2013.
5. “Outlook for Rail Crude Oil Transport,” Rail Energy
Transportation Advisory Committee, Surface Transportation
Board, Mar. 14, 2013.
6. “Carlyle Group, Sunoco, and Politicians’ Joint Venture to
Rescue Philadelphia Refinery,” Washington Post, Dec. 21, 2012.
7. “Kinder Morgan Cancels $2 Billion Pipeline Plan,” Wall
Street Journal, May 31, 2013
Julie M. Carey ( email@example.com) is a
director with Navigant Consulting. She is an
economist with a focus on energy and regulatory
economics and antitrust analyses involving electricity, oil and gas, pipelines, coal, renewables,
and railroad industries. She has provided expert
testimony in US federal and state courts, arbitrations, and US and Canadian regulatory agencies.