August 1, 1995
Angolan Oil & Gas Installation
ABB Oil & Gas is a growing business area within ABB’s worldwide organization. ABB Oil & Gas comprises four companies (ABB Vetco Gray, ABB Lummus Global Inc., ABB Maritime Group and ABB Offshore Technology) offering products and services to the oil and gas market. Total turnover is 1.5-billion US$ and over 8,000 people are employed in the worldwide activities of ABB Oil & Gas, which are coordinated from Oslo Norway. Interestingly enough, almost 1-billion US$ of the Oil, Gas & Petrochemical industry’s backlog is in the Sub-Sahara region in 1995.
A joint venture company of Chevron, AGIP, ELF and Sonagal, the national oil company of Angola, awarded ABB Oil & Gas (Lummus Overseas Corp. LOC) a turnkey contract for the engineering, procurement, fabrication, transportation, installation and start-up/ commissioning of a 330-million US$ oil & gas production facility, located off the coast of Angola.
Some of the unique characteristics of this offshore project were:
- Arrangement of 41% financing for Sonagal’s portion of the project;
- Management of four major subcontractors for the fabrication of the jackets, installation of the pipelines, installation and transportation of the jackets and decks;
- Procurement of some 53 major capital equipment, along with 27-million US$ worth of components and commodities from 17 countries and some 153 vendors;
- Procurement, coating and transporting of 72 kilometers of transmission pipelines;
- Execution within a 33 month contract schedule with liquidated damages for late delivery.
This project was the largest single project in the history of ABB Oil & Gas where ABB was the prime contractor with full responsibility for all its subcontractors and all vendors on the project.
1.2 million Construction man-hours were expended along with 205,000 hours for engineering and procurement.
