Penspen Lands 2nd PMS Contract with Al-Khafji Joint Operations

- Penspen Lands 2nd PMS Contract with Al-Khafji Joint Operations

Wednesday, July 13, 2011
The Penspen Group

Penspen has been awarded a new five-year contract to provide project management services (PMS) to Al-Khafji Joint Operations (KJO), a joint venture between Aramco Gulf Operations and Kuwait Gulf Oil Company, in its development of the Khafji and Hout Fields on the Kuwait / Saudi Arabia border.

The contract follows on from the previous PMS contract awarded to Penspen by KJO in 2005. The scope of works includes all aspects of managing the engineering, detailed design, procurement and construction of KJO's oil and gas projects in Khafji. Penspen's core project management team will be based on site with a number of satellite teams based in Contractors' offices around the world.

The project is expected to employ approximately 200 people for five years and will include major onshore and offshore Field Development from FEED through Tendering, Detailed Design and Construction. Specific services provided will include:

• Review of Design Basis and Scoping Papers(DBSP) for all KJO Projects
• Supervise FEED Preparation by other Engineering Contractors and issue tender for EPC Contracts
• Commercial and Technical Review of EPC Contractors Bids
• Technical Review and Approval of EPC Contractors Design by Satellite Team
• Follow up Material Procurement and Supervise Construction and Commissioning
• Technical Support to KJO and Satellite Teams from Core Team
• Contract Administration and Project Controls for all KJO Projects

In February this year, Penspen won The British Business Forum Award of Merit at The British Business Forum Excellence Awards in Kuwait for its previous exemplary work on the contract.

Penspen's Director of PMS, Chris Williams, said, "We are delighted to have been re-awarded this contract. Our work in Saudi Arabia for Khafji Joint Operations builds on our many decades of experience in the region. It is one of our key objectives to provide outstanding technical service for our clients, and in doing so, to establish successful long-term client relations. We very much look forward to working with KJO for the next five years."

KJO Executive Director, Projects, Jamal Jaafar, said, "KJO are pleased with Dar/Penspen's previous contract performance and happy to renew this working association for another 5 years. This clearly gives uninterrupted continuity to manage our Industrial Projects in an efficient professional way that we have come to expect from Dar/Penspen, and we wish them success in achieving the new contract objectives."

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TGS Strengthens PMS Position with Stingray Acquisition

TGS Strengthens PMS Position with Stingray Acquisition

Monday, April 11, 2011
TGS-NOPEC Geophysical Co. ASA

TGS has entered into an agreement to acquire 100% of the shares of Stingray Geophysical Limited (Stingray). The transaction will provide TGS with a strong position in the rapidly growing market for Permanent Reservoir Monitoring (PRM) solutions. The acquisition will substantially increase TGS' addressable market through access to production seismic spending from large international oil companies as well as national oil companies (NOCs), while maintaining its successful asset light model.

Robert Hobbs, CEO of TGS said, "The age of "easy to find" oil is over, forcing oil companies to increase investment in their existing fields to extend production and increase recovery factors. The acquisition of Stingray allows TGS to access a larger portion of the reservoir optimization market. The combination of TGS and Stingray will leverage both companies' strengths to create a powerful PRM offering to the industry."

Martin Bett, Managing Director of Stingray added, "TGS brings complementary capabilities, a global organization, established seismic project management skills and financial strength to Stingray. As a part of TGS, Stingray is now well positioned to deliver innovative PRM solutions that will assist our clients to increase production and reserves whilst decreasing risk and costs of their Enhanced Oil Recovery programs."

The 4D seismic market, of which PRM is an integral and increasing part, was estimated to be over USD 1 billion in 2010 with the majority of data being acquired by towed streamers (source: ODS PetroData). Expectations are for the 4D market to exceed USD 2.5 billion within the next four years (source: Stingray estimate). New PRM installations are expected to trend towards optical versus electrical solutions due to the expected increase in reliability and flexibility that this technology offers, especially in deep water.

The transferred assets include 11 employees and an extensive portfolio of intellectual property. All management team members and employees of Stingray will continue as employees of TGS.

The consideration for 100% of the shares is based on an initial payment of USD 45 million and incremental payments of up to USD 35 million based on the success in commercializing the technology.

The transaction is expected to complete in April 2011.