DFW Airport Inks Drilling Lease With Chesapeake

The DFW International Airport board recently approved a lease with Chesapeake Energy to begin natural gas exploration. Also, KBR joint venture inks a contract for largest gas-to-liquids project in history.
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DFW Airport Approves Barnett Shale Drilling Lease With Chesapeake

The DFW International Airport Board of Directors recently approved a lease with Oklahoma City-based Chesapeake Energy Corp. to begin natural gas exploration in the Barnett Shale that lies below the airport's 18,000 acres. Chesapeake will pay DFW $181 million in initial bonus and a royalty of 25 percent on all gas produced. At press time, the lease was expected to be approved by the Dallas and Fort Worth City councils.

DFW says it worked closely with the FAA to determine safety and security requirements for the exploration and drilling process. Almost all of DFW's 18,000 acres are available for exploration, and more than 9,000 acres are available for surface drilling. DFW updated its construction and fire prevention standards and added a chapter to specifically address oil and gas exploration and production. All drilling activities require permits from DFW, which must be approved by the FAA. The airport says drilling will have no impact on airfield operations. "This new revenue may be as important to DFW as our parking and concessions programs and provide [us] the means to invest in the future of our airport and North Texas for many years to come," said Jan Collmer, DFW International Airport Board chair of directors.

The board-approved lease features minority investor and contracting participation that is unprecedented in the oil and gas industry. Minority and women-owned business equity participation will be greater than 20 percent; MWBE subcontractor participation will be greater than 39 percent.

KBR Joint Venture Signs Contract with Shell for GTL Project

Houston-based KBR recently announced that it signed a contract to provide project management and cost-reimbursable engineering, procurement and construction management services to Qatar Shell GTL Ltd., a Royal Dutch Shell plc subsidiary, for the Pearl Gas to Liquids project in Ras Laffan, Qatar. The contract value has not been disclosed.

KBR, the engineering, construction and services subsidiary of Halliburton, will undertake the work in a joint venture with JGC of Japan, incorporating the services of MWKL, a KBR/JGC subsidiary.

In addition to the development of offshore upstream gas production facilities, the Pearl GTL project comprises the development of an onshore GTL plant that will produce 140,000 barrels per day of GTL products and approximately 120,000 barrels of oil equivalent per day of natural gas liquids. When complete, it will be the largest GTL complex in the world, according to KBR.

"GTL is at the forefront of gas processing technology and is key to satisfying the world's future energy needs," said Bill Utt, president and chief executive officer of KBR. "As the leading provider of EPC and project management solutions to the gas monetization industry, we are proud that Shell has chosen us for this important project."

Bechtel, Jacobs Awarded Refinery Expansion Project by Motiva

Bechtel Corp. and Jacobs Engineering Group Inc. recently announced that they were awarded a contract by Motiva Enterprises LLC (jointly owned by Saudi Refining Inc. and Shell Oil Co.) to provide engineering, procurement and construction services for a proposed 325,000 barrel-per-day refinery expansion at its Port Arthur facility.

"We are pleased about the opportunity to provide Motiva the proven resources of our two organizations to execute one of the largest refinery expansions ever undertaken in North America," said Pete Evans, Jacobs Group vice president. "Our established working relationship and knowledge of the Port Arthur Refinery enables us to develop programs and approaches that are tailored to the unique aspects of the project. We look forward to continuing to be part of the Port Arthur community."

Port of Corpus Christi Signs MOU for Container Terminal

The Port of Corpus Christi has entered into an expanded Memorandum of Understanding with Dragados-S.P.L. (Services of Port and Logistics) of Madrid, Spain, to facilitate the negotiation of a Definitive Agreement (DA) for the construction and long-term concession agreement for the operation of the La Quinta Trade Gateway Container Terminal. The port committed to invest approximately $83 million dollars in the project.

The port's obligations will include the extension of the La Quinta Ship Channel, design and construction of phase one and two wharfs, road access and utilities to the terminal site from U.S. Hwy. 181, sublease of the terminal site and exclusive option to Dragados-S.P.L. to implement phase three wharf of the project.

The DA obligates Dragados-S.P.L. to sublease the terminal site from the port for a term of no less than 50 years and to construct, operate and maintain a container terminal on the terminal site, and provide all terminal equipment necessary to operate the terminal.