Spanish company leads bidding for Aramco gas projects

A view shows Saudi Aramco's Wasit Gas Plant, Saudi Arabia, December 8, 2014. Picture taken December 8, 2014. Saudi Aramco/Handout via REUTERS ATTENTION EDITORS - THIS PICTURE WAS PROVIDED BY A THIRD PARTY. NO RESALES. NO ARCHIVE.
Updated 24 October 2017
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Spanish company leads bidding for Aramco gas projects

ALKHOBAR: Tecnicas Reunidas has offered the lowest bids to build two gas projects which are planned by Saudi Aramco, sources familiar with the plans said on Monday.
While the Spanish engineering firm has made the lowest bids on the Haradh and Hawiyah gas compression stations and the Hawiyah gas plant, Italy’s Saipem and Samsung E&C are also well placed to win the Hawiyah gas plant work, they said.
The new gas compression plants and the expansion of the Hawiyah gas plant are expected to cost more than $4 billion, industry sources have estimated.
Saudi Aramco does not comment on its business transactions, it said in response to an emailed request for comment.
Tecnicas Reunidas declined to comment, while Saipem had no comment and a spokesman for Samsung Engineering said it had no new information on the
bidding progress.
“We expect results to be announced (at the) beginning of November,” he said.
Hawiyah and Haradh are part of Ghawar, the world’s largest onshore oilfield.
Gas will play a key role in the diversified energy mix which Saudi Arabia is keen to achieve by cutting the use of crude oil and liquids for power generation, while allocating more gas to fuel economic growth and industrialization.
The Kingdom is targeting raising the use of gas in its energy mix to 70 percent, officials have said.
Despite falling oil prices, Saudi Aramco is pushing ahead with oil and gas projects that it has highlighted as a priority for the long term to keep the world well supplied with oil, while meeting domestic gas demand.
It plans to nearly double gas production to 23 billion standard cubic feet a day in the next decade.
 


JC Decaux pursues $810 million bid for Australia billboard firm APN

Updated 9 min 24 sec ago
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JC Decaux pursues $810 million bid for Australia billboard firm APN

PARIS: French outdoor advertising company JC Decaux said it was still in talks with Australian billboard firm APN Outdoor Group over its offer to buy APN, currently worth around $810 million.
The statement from JC Decaux came after APN itself lost out in a bid for advertising firm Adshel, part of a series of deals in the lucrative Australian outdoor advertising market. The French group is one of four companies controlling an industry estimated to be worth some $660 million in Australia.
JC Decaux’s offer had in fact been conditional upon APN scrapping its $424 bid for HT&E’s Adshel outdoor advertising division Adshel. A deal for APN to buy Adshel would have increased the competitive pressure on JC Decaux’s local business.
JC Decaux, which sells ads on bus stops and billboards, has offered A$6.52 per APN share, valuing APN at around A$1.09 billion ($808.8 million).
“Until a transaction is agreed between the parties, there is no certainty that the proposal will result in any transaction. JC Decaux will continue to update the market in relation to the proposal,” JC Decaux said in a statement.
Last week, APN had called JC Decaux’s offer “modest” and had decided against backing down on its proposal to buy Adshel. In the event, APN was beaten out by rival Ooh!Media Ltd. in the fight to buy Adshel.
JC Decaux shares were up 0.5 percent on Monday, while shares in APN had been temporarily suspended.
APN and Ooh!Media rank first and second in the billboards and outdoor advertising market in Australia, according to research firm IBISWorld. JC Decaux ranks as the third-biggest in Australia, while HT&E ranks fourth.
The mergers and acquisitions activity within the Australian outdoor advertising sector has drawn close scrutiny from regulators, which had last year blocked a merger between APN and Ooh!Media.