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