SHEIBA-ABQAIQ NEW OIL PIPELINE NEARS COMPLETION

SAUDI COMMERCE & Economic Review, 2008, No. 172

Construction of the $100-million new oil pipeline connecting Sheiba to Abqaiq (SHBAB-2) in the Rub Al Khali or Empty Quarter of the Eastern region of Saudi Arabia is nearing completion. It is a 217-km long and 30 inches in diameter pipeline which will run parallel to the existing 480 km SHBAB-1 loop and will carry Arabian super light crude to be produced from the Shaybah oil field.

Mr.   Konstantin   P.    Dudarev, General Manager for the Branch of GCC Countries of the Russian construction firm, PJSC Stroytransgaz, which won the contract from Saudi Aramco in March, 2007 to build the SHBAB-2, disclosed in an interview with the Saudi Commerce & Economic Review in Dammam last month that nearly 90 percent work of the pipeline has so far been completed. "The rest of the work will be finished before the end of the year," he said.

Mr. Dudarev noted that Stroytransgaz has already completed welding work for the oil pipeline. A large portion of the welding was done with a CRC-Evans automatic welding unit. The quality of welded joints was tested with a unit that uses automatic ultrasound control, delivering results quickly and providing high accuracy where defects in the welded joints are revealed. Modem welding technologies and quality control have enabled Stroytransgaz to make significant increases in the pace of welding and to ensure the high quality of its welding work.

Saudi

Representatives of the Russian construction firm, PJSC Stroytransgaz, are seen during their visit to Asharqia Chamber

Stroytransgaz will assemble five valve units with surge relief skids and launching and receiving stations, leak detection, cathodic protection and electrical systems. It will also make improvements in the SHBAB-1, adding 21 units for surge relief skids and leak detection system.

The scope of work that Stroytransgaz will carry out includes building storage facilities for chemical reagents (DRA) and biocides for the operating GOSP-2 refinery, located at the Shaybah field. Work on the Abqaiq pumping station will include two hot taps and assemblage of two valve units.

The SHBAB-1 oil pipeline runs from the Shaybah field in the Rub al-Khali desert on the border with the United Arab Emirates to a refinery in Abqaiq, 70 kilometers from Dammam .

First Arab Expo in Moscow in Oct.

Mr. Dudarev noted that the first Arab exhibition – Arabia Expo – will take place on October 22–24, 2008 in Moscow, which, he said, would open up new avenues for businessmen from Russia and Arab countries to establish trade contacts. This show is expected to become an annual event.

The Arabia Expo is aimed at the restoration of the economic ties between Russian and the Arab countries, defining joint investment projects and negotiations for the promotion of Arab products and services. Besides, the exhibition is designed to set up contacts and relations between Russian and Arab associations of businessmen, chambers of commerce and industry, commercial, economic and financial institutions at the regional level.

The decision to organize the Arabia Expo was taken by the Russian side of the Russian–Arab Business Council (RABC) during the sixth joint session of the Council in St.Petersburg in September, 2006. It will be organized with the support of the Chamber of Commerce and Industry of the Russian Federation, the Russian ministries of Foreign Affairs, Economic Development and Trade and the Federal Agency for Water Resources.

The exhibition will be held in the modern international exhibition centre – Crocus EXPO, which meets the top international standards. Its core business is holding large international exhibitions with the participation of Russian and foreign companies.

Mr. Sergey V. Samoylenko, Head of Mass Media Communications Division of Stroytransgaz, who was visiting the Kingdom to promote his company's activities, observed that Stroytransgaz is interested in engaging in more construction projects in Saudi Arabia. "We have much to offer to the Kingdom", he said adding that Stroytransgaz is listed among the 100 largest construction companies in the world.

Pointing to the SHBAB-2 contract, Mr. Samoylenko said this is the first large project awarded to a Russian construction company to build facilities for Saudi Arabia's oil and gas industry. Winning of this contract has confirmed again the world market's recognition of the experience and qualifications of Russian firms in this field, he added.

Stroytransgaz offer all forms of services to implement large projects – from developing project documentation to postconstruction services. Its main activities include installation of oil and gas pipelines (linear part, compressor and pumping stations), oil and gas field development, oil and gas storage and processing facilities, facilities for delivering gas, energy sector facilities (cogeneration plants, nuclear power plants, gas-diesel and gas-turbine power stations, power transmission lines), plants for metal production and other industrial facilities and civil buildings, roads and bridges and social infrastructure.

- SHAMSUL HUDA