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Last updateMon, 19 Mar 2018 5am

Technip awarded subsea contract by Chevron North Sea

Technip has beenawarded by Chevron North Sea Ltd a substantial(1) engineering, procurement, installation and construction (EPIC) contract for the Alder field. Chevron is developing the Alder field as a subsea tieback to the Britannia Bridge Link Platform (BLP). This field is located in the central North Sea, about 200 kilometers North-East of Aberdeen, Scotland, at a water depth of approximately 150 meters.

The contract will cover a wide scope of work, from engineering to manufacturing and installation:

- the detailed design and pipelay of a 28-kilometer 16” pipe-in-pipe system,

- the installation of a 28-kilometer hybrid umbilical(2),

- various subsea works including the installation of a manifold(3) structure including HIPPS(4), subsea isolation valve structure, valves and spoolpiece(5) components.

Technip’s operating center in Aberdeen will execute the contract, which is scheduled to be completed in the second semester of 2015. Genesis(6) will complete the detailed design workscope and Technip’s spoolbase in Evanton, Scotland, will fabricate the pipe-in-pipe. DUCO Ltd, Technip’s wholly-owned subsidiary in Newcastle, England, will manufacture the umbilical. Vessels from the Group’s fleet will be used for the offshore campaign, including its newest state-of-the-art pipelay vessel, the Deep Energy.


Mitsubishi Electric launches Industrial Automation Business in Turkey

Mitsubishi Electric Corporation has announced that its local Turkish entity, Mitsubishi Electric Turkey A.Ş., has integrated the operations of GENEL TEKNİK SİSTEMLER SANAYİ ve TİCARET ANONİM ŞİRKETİ (GTS) and is now inaugurating sales of industrial automation systems under a new 42-person organization encompassing five sales offices in the country.

Under the new structure, Mitsubishi Electric envisions industrial automation sales reaching 3 billion yen by the fiscal year ending in March 2016 in Turkey, one of its priority markets. For further growth, Mitsubishi Electric Turkey also expects to develop sales in neighboring countries.

In addition, Mitsubishi Electric Turkey will support efforts to expand other Mitsubishi Electric businesses in Turkey, including those involving air conditioning and infrastructure-related business, such as satellites, elevators/escalators, electrical equipment for railcars, and power systems.

France's Schneider in $5 billion takeover talks with Invensys

The prospect of a bid battle powered Invensys (ISYS.L) shares to a ten-year high on Friday, after the British engineer said it had received a 3.3 billion pound ($5 billion) takeover proposal from France's Schneider Electric (SCHN.PA).

Invensys said Schneider, which confirmed only that it had made a proposal, was considering an offer of 505 pence a share in cash and stock, 15 percent above Invensys' closing price on Thursday.

A deal would allow Schneider to tap the British firm's strength in industrial automation, which is enjoying rapid growth in the oil, gas, petrochemicals and utilities sectors.

However, Invensys shares jumped as high as 513.5 pence on speculation the proposal could flush out other bidders.  U.S. group Emerson Electric (EMR.N) was in talks to buy Invensys a year ago, while a report in May 2012 said Germany's Siemens (SIEGn.DE), Switzerland's ABB (ABBN.VX) and U.S. giant General Electric (GE.N) had also made informal contact.

Those companies either declined to comment, or could not immediately be reached for comment.  "The most obvious candidate is Emerson, which was in related talks with Invensys back in June 2012," Societe Generale analysts said.

If a bid battle for Invensys breaks out, the share price could go even higher, said Neil Veitch, a fund manager at SVM Asset Management, which holds Invensys stock. However, a banker active in the sector said Schneider would be tough to beat. "You need to find someone willing to table an all cash bid," the banker said.

Invensys said it was likely to recommend an offer at 505 pence a share.  "Schneider is finishing its due diligence. There is a deal, there is a handshake," a source familiar with the matter said, speaking on condition of anonymity. He said he expected Emerson to look at Invensys because there were few companies like it available to buy. But Emerson could be put off by the price.

don't think there is anyone else out there," he said.

LONG SEEN AS A TARGET

Morgan Stanley analysts said the price proposed by Schneider was "fair and reasonable", valuing the British company at around 22 times earnings forecasts for 2014. That compares with an average multiple of 13 times for Britain's industrial machinery and equipment sector, according to Thomson Reuters data.

They said a deal would boost Schneider's share of the industrial automation market from just over 4 percent to around 6-7 percent, compared with world No.1 Siemens' 21 percent.

Analysts said a deal would also create an opportunity for Schneider to sell its energy management products to Invensys' customers in the oil, gas and petrochemicals sectors.

At 1503 GMT, Invensys shares were up 15.4 percent at 508 pence. Schneider's were down 3.9 percent at 55.81 euros on concerns it could get sucked into a bid battle and the cost of insuring its debt against default jumped on expectations it would raise new debt to fund a deal.

Invensys has long been mooted as a takeover target in an industry dominated by larger rivals, particularly after the disposal of its rail unit last year, which enabled it to strengthen its balance sheet and pension fund.

The British firm said Schneider's takeover proposal comprised 319 pence in cash and 186 pence in new shares for each Invensys share.

The French group, which said last summer it planned to step up acquisitions, has until August 8 to say whether it intends to make a firm offer or walk away under UK takeover rules. Activist investor ValueAct Capital Management has been building up a stake in Invensys. It holds 8.16 percent of the stock, according to Thomson Reuters data.  Barclays and JP Morgan Cazenove are advising Invensys, while Deutsche Bank and BofA Merrill Lynch are working for Schneider.

($1 = 0.6615 British pounds)

($1 = 0.7668 euros)

(Reuters)

Yokogawa wins major Contract for one of the UK's Largest Onshore Gas Storage Facilities

Yokogawa Electric Corporation announces that its subsidiary, Yokogawa United Kingdom Ltd., has been awarded a multi-million pound contract by SSE Hornsea Ltd for the upgrade of one of the UK's largest onshore underground gas storage facilities, located at Atwick, East Yorkshire.

Yokogawa United Kingdom will supply an integrated control and safety system, together with a metering solution. The order includes the supply and installation of Yokogawa's flagship CENTUM® VP integrated production control system to control the gas compressors. Also included in the project is the ProSafe®-RS integrated safety instrumented system, which will contribute to ensuring process safety at the facility.

The Atwick gas storage facility comprises nine man-made salt cavities that have been leached into a salt layer 1.8 kilometres underground, creating around 325 million cubic meters of gas storage space. Gas is imported to the site and injected into the cavities for storage. When needed, the gas is then withdrawn from the cavities, dried, and exported to the National Transmission System. According to the British Geological Survey: "When compared to above ground storage tank facilities, underground gas storage provides the significantly greater and cheaper storage volumes required and, when carefully constructed and monitored, added levels of safety."

This contract is part of an SSE project to extend the life of the site and allow its use for both peak shaving and longer term storage by improving control, compression, and metering. It is the project's aim to ensure the viability of the asset's control systems and the commercial availability of the facility for the future by replacing the obsolete control systems with modern, maintainable, and supportable control and safety systems.

"This is a significant order win for Yokogawa," says David Clough, Sales Director at Yokogawa United Kingdom. "It was the quality of our products and their technical superiority, together with the experience and dedication of our engineers that were recognized by the customer. We are committed to achieve the project's aim, enhancement of the operational life, while maintaining safety."

Herman van den Berg, President, Yokogawa Europe B.V: "In Europe and North America, gas is often stored in underground facilities, and many projects for the construction and upgrade of such facilities are in the planning stage, spurred by such developments as the surge in shale gas production. Yokogawa is targeting the natural gas industry, and we believe that this project will allow us to gain further expertise in gas storage control and safety applications that we intend to share with the entire Group."

Foster Wheeler acquires UK-Based Ingen Ideas, a Specialist Upstream Consultancy

Foster Wheeler AG  has acquired Ingen Ideas ("Ingen"), a privately held upstream consultancy company located in Aberdeen, UK.

Ingen specializes in field development and project decision support, focused on the evaluation and implementation of oil and gas field developments covering greenfield and brownfield assets. Ingen's expertise includes field development, process engineering including subsea and topsides design, flow assurance, enhanced oil and gas recovery, carbon management and petroleum engineering.

Ingen will become part of Foster Wheeler's EMEA (Europe, Middle East, Africa) Upstream operations, which already has operations in Woking, Reading, Glasgow and Hull, all in the UK.

“The acquisition of Ingen is part of our stated strategy to grow our upstream capabilities, particularly for offshore, and to extend our offering to our clients to encompass the full oil and gas value chain,” said Kent Masters, Chief Executive Officer, Foster Wheeler AG. “The ability to provide high quality, high value-added consultancy services to our clients at a very early phase of the development of an oil and gas asset is a key factor in developing and extending long-term relationships with our clients, and also strengthens our position for future phases of these projects.”