FACTS & FIGURES - Tecnimont ICB

Middle East and Mediterranean Area:
Consolidated Leadership and New Opportunities
The Middle East and North Africa (MENA) is the world’s most
influential oil and gas region, accounting for two-thirds of the world’s
proven oil and about 45% of its proven natural gas reserves. Thanks to
new discoveries and the introduction of advanced exploration and
production techniques, the region's oil wealth has grown solidly for the
past two decades. The GCC countries have traditionally been the main
players in the region, but North African countries have grown in
prominence recently. Maire Tecnimont has been active in MENA since
the investment boom of the eighties. The Group’s presence has
increased significantly in the last few years and we have become a
leading engineering and construction player, especially in the
petrochemicals sector. Maire Tecnimont has won contracts worth
more than US$4.5 billion in the investment boom in Saudi Arabia, the
United Arab Emirates, Qatar, Kuwait and Bahrain. In 2008 Engineering
News-Record, the leading US journal for the E&C industry, ranked the
Group as the 10th largest engineering contractor in the Middle East.
Maire Tecnimont has also grown in stature and reputation in Egypt,
Libya, and other North African countries.
Maire Tecnimont is present in MENA with branch and representative
offices in Abu Dhabi (UAE), Kuwait, Qatar, Tehran (Iran), Tripoli
(Libya), and a wholly owned subsidiary, Tecnimont Arabia Ltd, in
Jeddah (Saudi Arabia). In 2008, more than 50% of Group revenues
came from this area. MENA is increasingly attracting investment
from leading international petrochemical producers because of its
abundant hydrocarbon resources and favourable geographical
position bridging East and West.
Rabigh, Kingdom of Saudi Arabia
At a cost of more than US$9 billion, the client is building one of the
world’s largest integrated refinery and petrochemical complexes at
Rabigh on the Red Sea, about 160 km from Jeddah. Our contract,
awarded in 2006, is for the construction of the polyolefins units. The
Petro Rabigh project marks the entry of Aramco into the
downstream petrochemicals industry, as well as the first large
investment by Sumitomo Chemical in Saudi Arabia.
The Tecnimont-led consortium completed the project and handed it
over to the client at the end of November 2008. For Tecnimont, it
was an important achievement because of its size and
diversification of technology, and also because of the business
relationships forged with two prestigious new clients, Aramco and
Sumitomo Chemical.
In November 2008, the jury named the Rabigh project the prize
winner at the 2008 International Project Management Association
(IPMA) International Project Excellence Award meeting in Rome.
Contract type: EPC lump-sum
Client:
Petro Rabigh, a jv of Sumitomo
Chemical Co. (Japan) and Aramco
(Saudi Arabia)
Contractor: A consortium of Tecnimont (leader) and
Sumitomo Chemical Engineering Co.
(Japan) for offshore activities; a
consortium of Tecnimont Arabia and
AICO (Saudi Arabia) for onshore
activities
Contract value: US$1,200 million (Tecnimont share 60%)
Capacity and two PP lines, each of 350,000
technology: tonnes/year; 250,000 tonnes/year
EPPE; 350,000 tonnes/year LLDPE;
300,000 tonnes/year HDPE (all using
Sumitomo technology, with the
exception of a LyondellBasell
Hostalen HDPE unit); 50,000
tonnes/year of polymer-grade
butene-1 (Axens technology)
Contract type: EPC lump-sum
Client:
Saudi Ethylene and Polyethylene
Company (SEPC) – a jv of Tasnee
Petrochemical (45.3%),
LyondellBasell (25%), Sahara Co.
(24.4%) and GOSI (5.3%)
Contractor: Tecnimont
Contract value: ¤525 million
Capacity and 400,000 tonnes/year HDPE
technology: (LyondellBasell Hostalen
technology); 400,000 tonnes/year
LDPE (LyondellBasell Lupotech T
technology)
Contract type: EPC lump-sum
Client:
Borouge, a jv of Abu Dhabi National
Oil Co. and Borealis
Contractor: Tecnimont
Contract value: US$1,900 million
Capacity and two PP lines, each of 400,000
technology: tonnes/year; 540,000 tonnes/year PE
(Borealis Borstar technology for both
products)
Tasnee, Al Jubail, Kingdom of Saudi Arabia
The client is setting up a large petrochemical complex costing
about US$2.4 billion at Al Jubail. In 2006 Tecnimont won a contract
for the construction of HDPE and LDPE plants with a total capacity
of 800,000 tonnes/year, the largest in the world to be based on the
LyondellBasell Hostalen and Lupotech T processes. The complex is
centred on a large ethylene plant supplied by another contractor.
Thanks to its experience in polymers, its excellent relationship
with LyondellBasell and its knowledge of the Saudi Arabian market,
Tecnimont was selected by Tasnee in a negotiated open-book,
cost-estimate approach, which was then converted into a lump-sum
contract. The HDPE plant was handed over to the client and
successfully started production in November 2008. The LDPE unit
began production in early 2009. The project was financed by a mix
of equity and loans. Credits were arranged by HSBC as the lead
bank, with the support of SACE, KEXIM and KEIC for export
guarantees and insurance-covered loans.
Borouge 2, Ruwais, Abu Dhabi, United Arab Emirates
The Borouge 2 project, awarded to Tecnimont in April 2007, calls
for the construction of three polyolefins units, together with
associated materials handling facilities, laboratories and marine
installations. One of the largest integrated petrochemical
complexes ever awarded on an EPC lump-sum basis, it is also the
largest contract in Tecnimont’s history. The project is on
schedule, with about 87% of the engineering completed by the
end of December 2008. Purchase orders placed covered about
85% of the equipment and materials, and approximately 50% of
the materials had already been delivered to the site. Ten million
man-hours had been spent on construction, which was 40%
complete at the end of 2008. The marine facilities were finished
on schedule and the whole project should be completed by the
second half of 2010. The excellent long-term relationship with
Borouge contributed greatly to the project’s success and will
further strengthen Maire Tecnimont’s hand in bidding for a large
new petrochemicals expansion (Borouge 3), contracts for which
will probably be announced in 2009/2010.
In December 2007 Borouge gave Tecnimont another contract,
worth approximately US$28 million, to expand the PE1 line it
installed in 2001. Key success factors here were Tecnimont’s
excellent performance in the Borouge 1 project, its successful
revamping of the PE2 line in 2004, and its ongoing performance in
the Borouge 2 expansion. The project was completed on schedule
in February 2009.
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