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Post by Blitz on Jan 11, 2024 17:49:28 GMT -5
Jumbo wins contract for Guyana-bound FPSO Errea Wittu FPSO will start production from the Uaru field in 2026 11 January 2024 - By Fabio Palmigiani in Rio de Janeiro www.upstreamonline.com/rigs-and-vessels/jumbo-wins-contract-for-guyana-bound-fpso/2-1-1582269Netherlands-based group Jumbo Offshore has been awarded a contract by Japan’s Modec for the pre-installation of the mooring spread of a large floating production, storage and offloading vessel destined to be deployed in Guyana. The Errea Wittu FPSO was ordered by US supermajor ExxonMobil to produce from the Uaru field in the Stabroek block offshore Guyana and Modec was contracted to build and deliver the unit. The floater will have processing capacity of 250,000 barrels per day of oil and 540 million cubic feet per day of natural gas, with operation due to start in 2026. The Errea Wittu FPSO mooring system will be supplied by Modec’s subsidiary Sofec and will consist of 19 mooring legs. Jumbo will use its heavy lift construction vessel Fairplayer in the transport and pre-installation of the 19 suction anchors, 8800 metres of chain sections and over 43,000 metres of polyester rope. “We will use the extensive deep-water mooring installation experience gained over the last years to deliver a reliable, smart and efficient project execution,” said Jumbo chief executive Igor Rijnberg.
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Post by Blitz on Jan 12, 2024 7:56:13 GMT -5
FLNG Gimi arrives at Greater Tortue Ahmeyim Field The vessel is due to operate on the GTA Field for the next 20 years. Jan. 11, 2024 - Offshore staff www.offshore-mag.com/vessels/article/14303583/bp-flng-gimi-arrives-at-greater-tortue-ahmeyim-fieldFLNG Gimi sailed from Singapore Nov. 19, 2023. OSLO, Norway — The FLNG Gimi vessel has reached the Greater Tortue Ahmeyim (GTA) field location offshore Mauritania and Senegal following a voyage from the Seatrium conversion yard in Singapore. Supplier Golar LNG has notified GTA operator bp of the arrival. Upon completion of preparatory activities, the vessel will be directed to its berth at the projects’ hub for subsequent connection to the offshore gas pipeline. In the meantime, Golar LNG and bp have agreed that FLNG Gimi will proceed to moor offshore Tenerife in the Canary Islands while awaiting completion of the preparatory program. The vessel is due to operate on the GTA Field for the next 20 years. 01.11.2024 _____________
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Post by Blitz on Jan 16, 2024 7:44:23 GMT -5
Locations of Guyana's 6 FPSOs and future plans for turning Gas-to-Energy... Another Exxon-led project may connect to Gas-to-Energy pipeline alongside Liza OilNOW - January 16, 2024 oilnow.gy/featured/another-exxon-led-project-may-connect-to-gas-to-energy-pipeline-alongside-liza/Guyana’s Natural Resources Minister, Vickram Bharrat, has confirmed to OilNOW that studies are underway to determine which of ExxonMobil’s Stabroek Block projects can utilize the additional capacity of the Gas-to-Energy pipeline, following start-up in 2025. Mr. Bharrat said, “The Liza development will supply 50 million standard cubic feet of gas, but the pipeline has a maximum capacity of 130 million cubic feet [per day]. Studies are being done to determine which development will fill the pipeline.” Gas-to-Energy: GAICO completes materials offloading facility, forges ahead with pipeline work | OilNOW Guyana’s Vice President, Bharrat Jagdeo, recently spoke of the government’s interest in having the full capacity of the pipeline utilized. He said work is ongoing for the completion of the natural gas strategy. That document will outline the uses for Guyana’s gas resources which stand at 17 trillion standard cubic feet. Government also issued a request for proposals from private companies for the design, finance, construction, and operation of essential gas infrastructure to support offshore developments. “We’re not awaiting the completion of the overall gas strategy to issue the RFP. We believe that a lot of the excess gas that’s not just in the Yellowtail project but other places, that right now, we need to bring in. We have to demand for the full capacity of the pipeline,” the VP said. New national control centre being constructed to support Guyana’s gas project | OilNOW He further noted that ExxonMobil has to commit to finding another 80 million cubic per day to put into the pipeline. Such an initiative would require an extension of the pipeline to the other project. If the full capacity of the pipeline is utilized, Jagdeo believes that the project’s economics would increase exponentially for Guyana. The Gas-to-Energy project is poised to be the most transformative for Guyana’s development trajectory. The initiative is expected to allow for a 50% reduction in electricity costs and a new era of industrialization. Guyana and an ExxonMobil-led consortium are executing the project. U.S. expected to approve US$660 million loan for Gas-to-Energy project in Guyana – Jagdeo | OilNOW Exxon is responsible for building a pipeline to bring gas from the Liza Phase 1 and 2 projects in the Stabroek Block to onshore facilities. The Guyana government contracted US-based CH4/Lindsayca to construct the integrated facility at Wales on the West Bank of Demerara. It entails a 300-megawatt (MW) power plant and a natural gas liquids (NGL) facility.
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Post by Blitz on Jan 17, 2024 9:19:53 GMT -5
Saipem nears FPSO deal with Chinese yard for $6 billion Angola project Italian contractor is in final discussions with yards before nailing down one in March and is aiming construction to start in July 17 January 2024 - By Xu Yihe in Singapore www.upstreamonline.com/exclusive/saipem-nears-fpso-deal-with-chinese-yard-for-6-billion-angola-project/2-1-1584346Italian engineering powerhouse Saipem is entering the final stages of discussions with Chinese shipyards to solidify its decision on selecting a subcontractor for the floating production, storage and offloading (FPSO) vessel for TotalEnergies' delayed $6 billion Cameia-Golfinho project offshore Angola. Asian contracting sources said that a delegation comprising commercial officials from Saipem and TotalEnergies this week is addressing the intricacies of commercial and technical aspects. You need a subscription to read this story
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Post by Blitz on Jan 18, 2024 9:23:38 GMT -5
Excerpt: Brazil-bound FPSO sets sail to Chinese yard for upgrade Polvo FPSO to undergo modifications for redeployment at Maromba heavy-oil field offshore Brazil 18 January 2024 By Xu Yihe in Singapore www.upstreamonline.com/rigs-and-vessels/brazil-bound-fpso-sets-sail-to-chinese-yard-for-upgrade/2-1-1585228BW Energy has chosen Chinese yard Cosco Shipping Heavy Industry to modify a floating production, storage and offloading vessel for its Maromba heavy-oil development in the Campos basin offshore Brazil. The Norwegian operator has signed a memorandum of understanding with Cosco, marking the initial step in the process of upgrading the Polvo FPSO for the Maromba project. The agreement outlines the start of preliminary upgrading work at Cosco’s Dalian facility, with the aim to proceed to a full engineering, procurement, and construction phase once project financing is secured.
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Post by Blitz on Jan 19, 2024 10:20:15 GMT -5
ABB supplying electrical, digital systems for Uaru FPSO offshore Guyana Jan. 18, 2024 www.offshore-mag.com/business-briefs/equipment-engineering/article/14303845/modec-inc-abb-supplying-electrical-digital-systems-for-uaru-fpso-offshore-guyanaOffshore Frontier Solution has contracted ABB to provide the electrical systems and associated digital solutions for the FPSO for the Uaru oil development. Offshore staff SINGAPORE — The MODEC/Toyo Engineering joint venture Offshore Frontier Solution has contracted ABB to provide the electrical systems and associated digital solutions for the FPSO for the Uaru oil development offshore Guyana. Errea Wittu will be the fifth floater on the Exxon Mobil-operated Stabroek Block, and it will operate about 200 km offshore. It will handle production from the Snoek, Mako and Uaru accumulations and should start service by 2026, with an initial oil production capacity of 250,000 bbl/d. Its associated gas treatment capacity will be 540 MMcf/d. ABB will supply a topside and hull electrical system to the vessel through a pre-built eHouse modular substation. This is designed to limit risk exposure and costs through commissioning, installing and testing all the electrical systems at the shipyard prior to deployment offshore. In addition, the company will provide power management solutions to optimize energy efficiency and the availability of all electrical equipment. This will be the company’s 14th collaboration with MODEC on FPSO projects offshore South America. 01.18.2024
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Post by Blitz on Jan 22, 2024 10:33:37 GMT -5
Wison New Energies starts pre-FEED work for two FLNG projects in Nigeria brazilenergyinsight.com/2024/01/22/wison-new-energies-starts-pre-feed-work-for-two-flng-projects-in-nigeria/ Wison New Energies starts pre-FEED work for two FLNG projects in Nigeria(OET) China-based provider of clean energy services Wison New Energies, formerly known as Wison Offshore & Marine, has initiated the design validation and pre-FEED phase for two floating LNG (FLNG) projects in Nigeria. Following the signing of the contract and disbursement of mobilization funding, Wison New Energies officially commenced the pre-FEED phase for two 3 million tons per annum (mtpa) FLNG projects owned by Nigerian companies Ace Gas and FLNG and Transoceanic Gas & Power.Transoceanic’s FLNG project is located offshore Pennington and proximal to OML 289, a block operated by the company on behalf of Cleanwaters consortium. It is designed to supply 3 mtpa of LNG to the international market, and 150,000 metric tons per year (MT/yr) of LPG to the domestic market.As part of the phased development plan, the project will deploy a floating power barge concept, starting with a Phase 1 Power capacity of 250MW.Ace Gas and FLNG project is located offshore Escravos and is also designed to supply 3 mtpa of LNG to the international market, and 150,000 MT/yr of LPG to the domestic market. The upstream gathering facilities for both projects will be managed by Samsung Heavy Industry Nigeria, while Siemens Energy will provide the power and compression systems. The projects also have offtake assurances for the LNG with Socar, Vitol, and Karpowership. The contract for the two Nigerian FLNG projects comes on the heels of Wison’s recent name change from Wison Offshore & Marine (WOM) to Wison New Energies to “better represent” the company’s commitment to providing low-carbon technologies and solutions.At the end of 2023, the Chinese company also entered into a memorandum of understanding (MoU) with Nigeria National Petroleum Corporation (NNPC) for the development of a floating LNG project in Nigeria, targeting the international LNG market. (OET) China-based provider of clean energy services Wison New Energies, formerly known as Wison Offshore & Marine, has initiated the design validation and pre-FEED phase for two floating LNG (FLNG) projects in Nigeria. Following the signing of the contract and disbursement of mobilization funding, Wison New Energies officially commenced the pre-FEED phase for two 3 million tons per annum (mtpa) FLNG projects owned by Nigerian companies Ace Gas and FLNG and Transoceanic Gas & Power. Transoceanic’s FLNG project is located offshore Pennington and proximal to OML 289, a block operated by the company on behalf of Cleanwaters consortium. It is designed to supply 3 mtpa of LNG to the international market, and 150,000 metric tons per year (MT/yr) of LPG to the domestic market. As part of the phased development plan, the project will deploy a floating power barge concept, starting with a Phase 1 Power capacity of 250MW. Ace Gas and FLNG project is located offshore Escravos and is also designed to supply 3 mtpa of LNG to the international market, and 150,000 MT/yr of LPG to the domestic market. The upstream gathering facilities for both projects will be managed by Samsung Heavy Industry Nigeria, while Siemens Energy will provide the power and compression systems. The projects also have offtake assurances for the LNG with Socar, Vitol, and Karpowership. The contract for the two Nigerian FLNG projects comes on the heels of Wison’s recent name change from Wison Offshore & Marine (WOM) to Wison New Energies to “better represent” the company’s commitment to providing low-carbon technologies and solutions. At the end of 2023, the Chinese company also entered into a memorandum of understanding (MoU) with Nigeria National Petroleum Corporation (NNPC) for the development of a floating LNG project in Nigeria, targeting the international LNG market.
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Post by Blitz on Jan 22, 2024 10:36:04 GMT -5
Equinor reignites Bay du Nord project with FPSO market inquiry Expressions of interest released for floating production, storage and offloading vessel and subsea hardware 22 January 2024 - By Iain Esau in London www.upstreamonline.com/exclusive/equinor-reignites-bay-du-nord-project-with-fpso-market-inquiry/2-1-1586260?abtest=aEquinor has hit the market with multiple inquiries centred on a highly-anticipated revival of its stalled deepwater Bay du Nord oil project offshore Atlantic Canada. As part of a project Upstream understands is now called Bay du Nord Reshape, the market inquiries cover a large floating production, storage and offloading vessel and a equally big subsea system. Bay Du Nord’s partners — which include BP — shocked contractors in May last year when, in a bolt out of the blue, they shelved the development in Newfoundland & Labrador waters “for up to three years” due to costs.
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Post by Blitz on Jan 23, 2024 8:49:54 GMT -5
Excerpt: oilnow.gy/featured/deepwater-capex-in-latin-america-to-surpass-us25-billion-in-2024-woodmac-projects/Latin America is poised for a surge in deepwater investments, with regional capital expenditures (CAPEX) expected to surpass US$25 billion in 2024, as outlined in Wood Mackenzie’s newest report titled: ‘Latin America upstream: 5 things to look for in 2024.’ The continuing growth of deepwater projects remains a dominant theme in the region. WoodMac said that while the number of floating production, storage and offloading (FPSO) vessel installations is anticipated to decrease in 2024, preparations for a larger number in 2025 are underway. “In Brazil, the sole FPSO install for the year is Mero 3, with further developments expected in the following year. In Guyana, the third FPSO is set for a ramp-up, and a final investment decision (FID) is anticipated for FPSO 6 in the esteemed Stabroek block,” the report outlined. That FPSO will be used for the Whiptail project. Set to produce 250,000 barrels of oil per day (bpd), Whiptail is on track for approval in the first quarter of 2024. WoodMac pointed out that Mexico is witnessing a decline in deepwater exploration but said that 2024 is anticipated to be an active year for project sanctioning. Noble projects Guyana-Suriname basin will need 6-7 ultra deepwater rigs through 2024 | OilNOW
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Post by Blitz on Jan 23, 2024 9:21:22 GMT -5
Guyana and Suriname breathe new life into FPSO demand Small South American nations are becoming increasingly important in the oil and gas arena 22 January 2024 - By Fabio Palmigiani in Rio de Janeiro www.upstreamonline.com/focus/guyana-and-suriname-breathe-new-life-into-fpso-demand/2-1-1582324 Even though Brazil absorbs most of the contracted fleet of floating production, storage and offloading vessels in South America, two small nations are emerging as beacons of forthcoming demand. Out of the picture until about a decade ago, Guyana and Suriname have taken the oil and gas industry by storm following massive discoveries in both countries. US supermajor ExxonMobil has so far unlocked about 11 billion barrels of oil equivalent in recoverable resources in the Stabroek block offshore Guyana. You need a subscription to read this story
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Post by Blitz on Jan 24, 2024 9:35:41 GMT -5
The Karoon article below shows the one FPSO has 12 wells connected to an 80,000 bbl/day vessel. XOM has FPSOs offshore Guyana that can handle 250,000 bbl/day... just to put the scale in perspective. The Errea Wittu FPSO was ordered by US supermajor ExxonMobil to produce from the Uaru field in the Stabroek block offshore Guyana and Modec was contracted to build and deliver the unit. The floater will have processing capacity of 250,000 barrels per day of oil and 540 million cubic feet per day of natural gas, with operation due to start in 2026. www.upstreamonline.com/rigs-and-vessels/jumbo-wins-contract-for-guyana-bound-fpso/2-1-1582269And now this... Karoon determines next-phase intervention for offline Baúna well offshore Brazil Jan. 23, 2024 - Offshore staff www.offshore-mag.com/production/article/14304004/karoon-determines-next-phase-intervention-for-offline-bauna-well-offshore-brazil Karoon Energy has issued an update on a hydrate formation issue at its Baúna development in the southern Santos Basin offshore Brazil and its planned remediation measures. SOUTHBANK, Australia — Karoon Energy has issued an update on a hydrate formation issue at its Baúna development in the southern Santos Basin offshore Brazil and its planned remediation measures. The development features 12 subsea wells (including two Patola wells bought online last year) that are connected through flowlines to the FPSO, operated by Altera&Ocyan and leased back to Karoon. The FPSO has capacity to handle about 80,000 bbl/d with oil storage capacity of about 631,000 bbl. In November 2023, production was impacted by issues related to equipment in the gas-lift dehydration unit on the FPSO. This led to formation of hydrates in two wells, which have impeded production rates. Although one of the wells was swiftly restored to production, the second has not produced since late November. Karoon and Altera&Ocyan have been working to address these issues, replacing equipment in the gas-lift dehydration unit and deploying gas stimulation of the impacted well, SPS-88, which was completed on Jan. 20. The topside issues have been resolved, and the hydrates appear to have been removed by circulating fluids. But the SPS-88 well has still not returned to production due to what appears to be a mechanical blockage in its gas-lift valve, part of the well completion. A well intervention will likely be needed to restore service, a program expected to take 20 days using a lightweight well intervention vessel and costing up to $10 million. As of September 2020, Altera&Ocyan is the new name of the 50:50 joint venture (JV) formed by Brazilian company Ocyan and by Norwegian-headquartered Altera Infrastructure (formerly Teekay Offshore). The JV started operating the FPSO Cidade de Itajaí in 2013. Five years later, the JV added another unit to its fleet, the FPSO Pioneiro de Libra, which went into operation in 2017. 01.23.2024
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Post by Blitz on Jan 26, 2024 8:29:39 GMT -5
First steel cut for Shell’s new Gulf of Mexico FPU – gallery BUSINESS DEVELOPMENTS & PROJECTS January 25, 2024, by Melisa Cavcic www.offshore-energy.biz/first-steel-cut-for-shells-new-gulf-of-mexico-fpu-gallery/Singapore’s Seatrium, previously known as Sembcorp Marine, has cheered the first steel fabrication milestone for the construction of a new semi-submersible floating production unit (FPU) destined for Shell’s recently sanctioned deepwater development in the U.S. Gulf of Mexico. Sparta FPU; Source: Shell Offshore The start of the construction phase comes weeks after Seatrium confirmed a contract for the construction and integration of the hull, topsides, and living quarters of the Sparta FPU – featuring a single topside module supported by a four-column semi-submersible floating hull – and follows the letter of intent from August 28, 2023. The final investment decision for the project was taken in December 2023. The FPU will replicate about 95% of the Whale FPU’s hull and 85% of its topsides. Sparta will be Seatrium’s third semi-submersible FPU built for Shell. The two-level topside for Sparta will be integrated and lifted to the hull using Seatrium’s Goliath twin cranes capable of lifting up to 30,000 tones. This FPU is designed to produce 90,000 barrels of oil equivalent per day (boe/d). “The strike steel ceremony marks the beginning of the Sparta project in our steel fabrication facility, powered by renewable solar energy. This execution aligns with our Sustainability Vision 2030, focusing on minimizing our carbon footprint operationally and contributing to the industry’s decarbonization efforts,” highlighted Seatrium. The Sparta project, previously known as North Platte, is a deepwater development in the U.S. Gulf of Mexico, measuring 4,300 square feet (1,310 meters). Discovered in 2012 by Cobalt International Energy, the Sparta field is currently operated by Shell Offshore (51%) with Equinor Gulf of Mexico LLC (49%) as the oil major’s partner. Strike Steel Ceremony for Sparta FPU; Source: Seatrium The development plan for the project covers eight production wells tied back to a semi-submersible FPU. With an estimated, discovered recoverable resource volume of 244 million boe and a designed capacity of 100,000 barrels of oil equivalent per day at peak, the Sparta FPU will feature all-electric compression equipment, allowing for significantly reduced emissions intensity from production. “The Sparta FPU, a close replica of its predecessors the Shell Vito and Whale FPUs, will leverage operational synergies by replicating the safe and efficient on-ground commissioning before the single-lift integration method for the topsides. When completed, Sparta will be situated in the Garden Banks area of the U.S. Gulf of Mexico, and is expected to produce 90,000 boe/d. We are very much looking forward to the successful delivery of the Sparta FPU,” explained Seatrium. Upon completion, the Sparta FPU will be situated in the Garden Banks area of the U.S. Gulf of Mexico, approximately 275 kilometers (171 miles) off the coast of Louisiana. The project is slated to start production in 2028. Related Article Sparta on the horizon: Shell sanctions deepwater oil development in US Gulf of Mexico Seatrium won several deals in 2023. One of the more recent ones was secured with Offshore Frontier Solutions Pte Ltd, a MODEC Group company, for topside module fabrication work related to the FPSO Raia in Brazil. ________________ Shell Makes FID for Sparta Development in Gulf of Mexico Dec 20, 2023 Shell Whale asset leaving Singapore (Credit: Shell) Shell Offshore, a U.S. subsidiary of Shell, has reached the Final Investment Decision (FID) for Sparta, a deepwater development in the U.S. Gulf of Mexico. Owned by Shell Offshore (51% operator) and Equinor Gulf of Mexico (49%), Sparta is expected to reach a peak production of approximately 90,000 barrels of oil equivalent per day (boe/d) and currently has an estimated, discovered recoverable resource volume of 244 million boe. Sparta will be Shell's 15th deep-water host in the Gulf of Mexico and is currently scheduled to begin production in 2028. The development plan includes eight production wells tied back to a semi-submersible floating production unit. Zoë Yujnovich, Shell's Integrated Gas & Upstream Director, said: "This investment decision is aligned with our commitment to pursue the most energy-efficient and competitive projects while supplying safe, secure energy supplies today and for decades to come." The Sparta development spans four Outer Continental Shelf (OCS) blocks in the Garden Banks area of the U.S. Gulf of Mexico. Building on more than 40 years of deepwater expertise, Sparta also marks Shell's first development in the Gulf of Mexico to produce from reservoirs with pressures up to 20,000 pounds per square inch. The field was discovered in 2012 by Cobalt International Energy. TotalEnergies became operator at that time with 60% equity, before withdrawing from the project in February 2022, releasing all its equity to Equinor. Equinor later sold the 51% stake in the project to Shell, retaining 49% interest.
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Post by Blitz on Jan 29, 2024 8:40:21 GMT -5
And now this... Norwegian player’s compressor system hand-picked for Yinson Production’s Angola-bound FPSO brazilenergyinsight.com/2024/01/29/norwegian-players-compressor-system-hand-picked-for-yinson-productions-angola-bound-fpso/#more-61426(OET) Norway’s compressed air systems supplier TMC Compressors has been hired by Yinson Production to deliver a large-capacity marine compressed air system on board a floating, production, storage, and offloading (FPSO) vessel destined to operate offshore Angola. TMC Compressors reported on Monday, January 29, 2024, that the marine compressed air system would entail compressors for control and service air on board the FPSO Agogo. This vessel will work in the West Hub field of Block 15/06 offshore Angola, which is operated by Azule Energy, Angola’s largest independent oil and gas producer and a 50/50 joint venture between BP and Eni. Hans Petter Tanum, TMC’s Director of Sales and Business Development, commented: “We are delighted to maintain our position as the global market leader for supply of marine compressed air systems to FPSOs. Yinson Production is an experienced FPSO operator that we are proud to have on our client list. Flying technicians offshore is a costly exercise. Enabling the vessel crew to conduct maintenance therefore makes sense” While the Norwegian firm did not disclose the value of the contract, the deal will enable it to manufacture and assemble the equipment in Europe before delivering it to Yinson Production’s chosen conversion yard. Designed specifically for offshore and marine use, TMC claims that the compressors have been developed to allow the vessel crew to conduct equipment maintenance themselves. The Agogo Integrated West Hub development project is widely recognized as one of the major upstream projects being developed in Angola with approximately one billion barrels estimated reserves and the potential to reach peak production of 175,000 barrels a day. The Agogo field, which is located about 180 kilometers west of the coast of Angola, was discovered in 2019 and lies at a water depth of approximately 1,650 meters with two FPSO vessels currently in operation. Once ready for service, the third FPSO will have a daily production capacity of up to 120,000 barrels of oil equivalent. The Agogo deepwater greenfield development is situated about 20 kilometers west of the N’Goma FPSO (West Hub), which has been in operation since November 2014. Yinson won a contract in February 2023 to deliver an FPSO for the project while Aker Solutions was picked to provide the umbilicals, and Subsea 7 for the transport and installation of flexible pipes, umbilicals, and associated subsea structures. Baker Hughes is in charge of delivering subsea equipment and services and TechnipFMC will supply risers and flowlines while MAN Energy Solutions’ scope of supply for the FPSO Agogo‘s gas lift, injection, and export application comprises nine electrically-driven centrifugal-compression trains to maximize the gas production’s flow rate and efficiency. When October 2023 rolled in, Yinson Production also revealed plans to pilot an offshore carbon capture and storage (CCS) plant, together with Azule Energy, on the FPSO Agogo. This is said to be the world’s first post-combustion carbon capture unit installed on board an FPSO.
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Post by Blitz on Feb 5, 2024 7:16:32 GMT -5
Stabroek Block production ramp-up expected to move faster – Darren Woods By Shikema Dey - February 5, 2024 oilnow.gy/news/stabroek-block-production-ramp-up-expected-to-move-faster-darren-woods/The optimization of production at the ExxonMobil-operated Stabroek Block offshore Guyana has been unprecedented and this can be increased even further. ExxonMobil’s Chief Executive Officer (CEO), Darren Woods says the company’s “design one, build many” concept is a huge factor in the consistent production ramp-up at its Guyana projects. “We have tried to maintain consistency from boat to boat,” Woods said during Exxon’s Feb. 2 Q4 2023 earnings conference. “As the subsurface and the complexity of the developments change, we have to make adjustments. It is not quite a cookie-cutter approach, but we tried to maintain a level of consistency.” He said this is done because it keeps capital costs down, and also allows for learnings to be taken from the previous boats and apply it to the one that just started up. This, Woods said, helps Exxon to advance things “faster to do things quicker.” The Liza Destiny FPSO – Guyana’s first oil production vessel. Exxon impact studies cater for higher production at projects offshore Guyana | OilNOW All the production vessels currently in operation offshore Guyana have been built by SBM Offshore. Exxon’s third Guyana development, Payara, achieved its production target in record time. The projection for ramp-up was five months after commissioning. Exxon achieved this in two. Exxon’s Chief Financial Officer, Kathy Mikells, said this success could also be attributed to the company drilling even more wells than planned. “[We wanted to] ensure we got that boat up to capacity as quickly as possible and our organization really delivered on that,” she added. Woods anticipates that for Exxon’s future projects, things will move even faster. The Liza Unity floating production storage and offloading vessel is the second FPSO to be delivered to ExxonMobil for its Guyana operations by Dutch floater specialist, SBM Offshore. “Take the previous ramp-ups as a basis and then our expectation is that the organization will find ways to do it even better,” he continued.
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Post by Blitz on Feb 5, 2024 7:39:10 GMT -5
MODEC marks start of construction for ‘one of the most sustainable FPSOs in the world’ OilNOW - February 5, 2024 oilnow.gy/news/modec-marks-start-of-construction-for-one-of-the-most-sustainable-fpsos-in-the-world/MODEC hosted a reception at the Guyana Marriott Hotel on Friday to celebrate the start of construction for its first project in the South American country – the Floating Production Storage and Offloading (FPSO) vessel Errea Wittu, for ExxonMobil Guyana’s Uaru Project. According to a press release, the Errea Wittu will have the company’s experience in construction and operation and will bring the most modern features in offshore production. It will be one of the most sustainable FPSOs in the world, using an energy production system with a combined cycle turbine on board. MODEC reinforces its leading role by using this technology offshore. It recovers exhaust heat to produce steam, which is used to drive a steam turbine for supplementary power generation, increasing the overall efficiency of the energy cycle and reducing the emission of greenhouse gases (GHG). The impact of the FPSO extends beyond mere resource extraction; it embodies the company’s commitment to local content, prioritizing skills transfer and Guyanese participation. MODEC has already contracted three Guyanese companies – Guyana Oil and Gas Support Services (GOGSS), Asequith Guyana, and ZECO Group of Services – to provide fabrication services for the vessel, with the prospect of further local collaboration, partnership, and multiple spin-off benefits. The contract encompasses the Engineering, Procurement, Construction, and Installation (EPCI) of the FPSO. MODEC will also provide the operation and maintenance services for this unit at least 10 years from its first oil production. The FPSO will be deployed approximately 200 kilometers offshore Guyana, at a water depth of 1690 meters and it will be able to store around 2 million barrels of crude oil. MODEC group company, Offshore Frontier Solutions Pte. Ltd. (OFS), will be responsible for the engineering, procurement, and construction of the FPSO based on MODEC’s M350TM new-build hull. In addition, the platform will use a Spread Mooring System provided by SOFEC, another MODEC group company. “The Uaru project stands as a testament to our dedication and ambition. It is not only one of our most significant endeavors but also a showcase of advanced technology and initiatives aimed at reducing greenhouse gas emissions. This project serves as a beacon, guiding us towards a future where sustainability and progress go hand in hand”, said Katsuyuki Imaizumi, MODEC’s Chief Operating Officer. Guyana’s Foreign Secretary Mr. Robert Persaud commended the activity which he said recognises collaboration. Persaud remarked that MODEC’s collaboration with the local companies is in keeping with the Government’s thrust to ensure that the development, progress and activities of the oil and gas sector directly benefit Guyanese and Guyanese businesses. He encouraged the private sector to see MODEC’s entrance into Guyana as a window to work closely with their Japanese counterpart and maximise opportunities. Vice Chairman of the Private Sector Commission, Mr. Rafeek Khan said that the collaboration with ExxonMobil and MODEC sets the stage from the top for other companies to follow suit.
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Post by Blitz on Feb 9, 2024 10:35:28 GMT -5
MODEC: FPSO construction underway for ExxonMobil’s fifth oil development off Guyana BUSINESS DEVELOPMENTS & PROJECTS - February 9, 2024, by Melisa Cavcic www.offshore-energy.biz/modec-fpso-construction-underway-for-exxonmobils-fifth-oil-development-off-guyana/Japanese FPSO operator MODEC has confirmed the start of the construction phase for a floating production, storage, and offloading (FPSO) vessel, which is destined to work on ExxonMobil’s fifth oil development in the Stabroek block offshore Guyana. FPSO Errea Wittu concept; Source: ABB According to MODEC, a ceremony to mark the beginning of construction for its inaugural project in Guyana, the FPSO Errea Wittu, which means ‘abundance’ in the local Warrau language, was held on February 2, 2024. This FPSO will be located on ExxonMobil’s Uaru project – the U.S. energy giant’s fifth development on the Stabroek block offshore Guyana – which was sanctioned in April 2023. The start-up of the $12.7 billion Uaru development is targeted in 2026. “The ceremony commemorated our collaboration with ExxonMobil Guyana and our partnership with the Guyanese companies Asequith Group of Companies, Guyana Oil & Gas Support Services and Zeco Group of Services Inc., which reinforces our commitment in fostering local growth,” explained the Japanese player, which secured a FEED contract for the FPSO Errea Wittu. The company got the green light to proceed with the engineering, procurement, construction, and installation (EPCI) scope for the vessel in May 2023. Furthermore, MODEC highlights that February 2024 is not only a significant month for the company due to the ceremony that marked the start of the building stage for the FPSO but also for its expansion journey and the announcement of its office in the country. The Japanese player underlines that this milestone underscores both “a strategic move” and its “unwavering” commitment and tangible presence in Guyana. MODEC has handed out several contracts for this vessel. As a result, Jumbo Offshore Installation Contractors is in charge of the pre-installation of the mooring spread of the FPSO Errea Wittu while the FPSO mooring system, consisting of a total of 19 mooring legs, will be supplied by SOFEC, a MODEC Group company. The Dutch player will use its Fairplayer heavy lift construction vessel for the work.
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Post by Blitz on Feb 10, 2024 11:12:03 GMT -5
BW FPSO inching closer to completion ahead of Barossa project Feb. 9, 2024 www.offshore-mag.com/vessels/article/14304962/bw-fpso-inching-closer-to-completion-ahead-of-barossa-projectBW Offshore has provided a progress report on its BW Opal newbuild asset. Courtesy BW Offshore LinkedIn Offshore staff OSLO, Norway — BW Offshore provided a progress report on its BW Opal newbuild asset. The FPSO will be deployed at Santos' Barossa gas project offshore Australia. BW Offshore stated on its LinkedIn Feb. 9: "With one of the largest FPSO hulls ever built and delivered from SKOP [SK Oceanplant yard] in South Korea on 28 October last year, the team is now working hard to complete construction of the topside modules in Dyna-Mac and the turret modules in Profab whilst integration and commissioning activities have started in the Seatrium Tuas Boulevard Yard. "So far, we have lifted nine of the topside modules (including the E-house) and on 4 February the first shipboard turret module was integrated into the hull. This was a very critical lift, flawlessly executed using the Asian Hercules III floating crane. The module itself, is an extra source of pride to BW Offshore as the shipboard turret is designed and managed completely inhouse." After completion of integration and commissioning, the BW Opal FPSO will head to Australia to start production at the Barossa project. BW Offshore is responsible for EPCI and operation of the FPSO. Located 300 km offshore Darwin, Australia, the Barossa gas field is scheduled for first production in first-half 2025. The gas field will be developed via the BW Opal FPSO with six subsea production wells, infield facilities, and a gas export pipeline tied into the Bayu-Undan to Darwin pipeline system that supplies gas to Darwin LNG. 02.09.2024
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Post by Blitz on Feb 13, 2024 7:14:33 GMT -5
I would expect this area will need more deepwater holes drilled in the sea floor. And now this... Sangomar FPSO arrives offshore Senegal Feb. 12, 2024 www.offshore-mag.com/production/article/14305037/sangomar-fpso-arrives-offshore-senegalWoodside Energy CEO Meg O’Neill said the milestone marked an important step on the road to first production from the Sangomar Field, which is targeted for mid-2024. Offshore staff PERTH, Australia — The Léopold Sédar Senghor FPSO facility has arrived offshore Senegal. Woodside Energy CEO Meg O’Neill said the milestone marked an important step on the road to first production from the Sangomar Field, which is targeted for mid-2024. The arrival of the FPSO from Singapore at its final destination about 100 km offshore Dakar, Senegal, marks the beginning of the next phase of the project: commissioning the FPSO and hooking up the 23 production, gas and water injection wells that make up Phase 1 of the Sangomar Field development. This is Senegal’s first offshore oil project. O’Neill said, “The completion of this phase of the project is only possible through strong partnerships with the Senegalese government, joint venture participant PETROSEN, and our contracting partners, all of whom have worked professionally and cooperatively since the final investment decision in January 2020.” Phase 1 of the Sangomar Field development includes a standalone FPSO with subsea infrastructure and an expected production capacity of about 100,000 bbl/d. 02.12.2024 ///////////////////////////// December 8 2023 - Sangomar Oil Field www.offshore-technology.com/projects/sne-deepwater-oil-field/?cf-view&cf-closedThe Sangomar deepwater oil field, located 100km south of Dakar, Senegal, is expected to start production in mid-2024. Project Type - Offshore deepwater oilfield development Location - Senegal Ownership - Woodside Energy (82%), and PETROSEN (18%) / Operator - Woodside Energy First Oil - 2024 The Sangomar field’s total recoverable oil resources are estimated to be 500mmbbls over its life. Credit: Kodda / Shutterstock. The production from the Sangomar oil field is expected to commence in mid-2024. Credit: Woodside Energy. The FPSO for the Sangomar field development will be installed at a water depth of 800m. Credit: MODEC. Sangomar oil field is located in the Rufisque, Sangomar and Sangomar Deep Blocks, offshore Senegal. Credit: Cairn Energy. The Sangomar field’s total recoverable oil resources are estimated to be 500mmbbls over its life. Credit: Kodda / Shutterstock. The production from the Sangomar oil field is expected to commence in mid-2024. Credit: Woodside Energy. The Sangomar (formerly SNE Deepwater) oil field is located in the Rufisque, Sangomar and Sangomar Deep Blocks, which cover a combined area of 7,490km² within the Senegalese portion of the Mauritania-Senegal-Guinea Bissau Basin. The field was one of the world’s largest oilfields in 2014. The project is being developed by a joint venture of Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore, comprising Woodside Energy (82%) and PETROSEN (18%), with Woodside Energy as the project operator. The environmental and social impact assessment for phase one of the project was completed in November 2018. The project owners submitted the development and exploitation plan to the Senegalese government in October 2018. Front-end engineering and design activities began in December 2018 following the approval of the Senegalese Minister of Petroleum and Energies. The field was renamed Sangomar in November 2019. The final investment decision for the project was taken in January 2020. Work on the field development began in early 2020. The first oil from the project is anticipated to flow in mid-2024. Production from phase one is expected to be approximately 231 million barrels (MMbbl) of oil. The total recoverable oil resources are estimated to be around 500MMbbl over the life of the field. The cost of the project is estimated to range between $4.9bn and $5.2bn. Sangomar oil field discovery and appraisal The Sangomar oil field was discovered in November 2014 with the drilling of the SNE-1 exploration well to a water depth of approximately 1,100m and a total depth of 3,000m. The well encountered a 95m gross oil-bearing column within upper Albian sandstones. The oil field was further evaluated by drilling the SNE-2, SNE-3, SNE-4 and BEL-1 appraisal wells from November 2015 to May 2016. The drilling and evaluation of the SNE-2 well was completed in January 2016. The well was drilled at a water depth of 1,200m and to a total depth of 2,800m within the Sangomar Block. Oil from the well flowed at 8,000 barrels of oil per day (bopd) from the lower reservoir unit and at 1,000 bopd from the shallower heterolithic reservoir unit during drill-stem testing (DST). The drilling of the SNE-3 well was completed in March 2016. Oil from the well flowed at a maximum rate of 5,200bopd and had a main flow rate of 4,500bopd over six hours during DST. Completed in April 2016, the BEL-2 well encountered an oil column of 100m and confirmed the extension of reservoirs in the northern area of the oilfield. The SNE-4 was drilled at a water depth of 942m and to a total depth of 2,944m within the Sangomar Block in May 2016. It encountered a gross oil column of 100m in the upper reservoir and confirmed the extension of reservoirs in the eastern extent of the oilfield. Reserves at the West African oil field The contingent recoverable resources from the field were estimated to be 1C, 2C and 3C of 346 million metric barrels (MMbbl), 563MMbbl, and 998MMbbl respectively. Sangomar oil field development details The project will be developed in phases with the first phase focussing on the development of the less complex reservoir areas apart from testing the nearby reservoirs. It will feature a permanently moored floating production storage and offloading (FPSO) facility named Leopold Sedar Senghor, along with 23 oil production wells and associated subsea systems. The subsea system will comprise wellheads and subsea trees, 9km to 22km in-line tees, up to six manifolds, flowlines and risers ranging from 50km to 150km (connecting to the FPSO), 15km to 50km of flowline end terminals, and 15km to 70km of umbilicals for the monitoring of wells. Leopold Sedar Senghor FPSO details The Leopold Sedar Senghor FPSO will be 372m long and 60m wide. It will have a production capacity of 100,000 bopd and 130 million standard cubic feet of gas per day (Mmscf/d). It will have a water injection capacity of 145,000 barrels per day (bpd) and a storage capacity of 1.3 million barrels of crude oil. A large crude carrier oil tanker is being modified for use as the FPSO. It will be moored at a water depth of 800m via SOFEC’s external Turret mooring system. The FPSO will allow the integration of subsequent development phases, including gas export to shore and future subsea tie-backs from other reservoirs and fields. Drilling rigs The exploration wells were drilled with Transocean’s fifth-generation, dynamically positioned, semi-submersible deepwater drilling rig named Cajun Express.
The appraisal wells were drilled using Transocean's seventh-generation dual-activity drillship Ocean Rig Athena. Financing Africa Finance Corporation, an infrastructure investor, agreed to collaborate with the government of Senegal to provide $54m (€50m) for the project development in August 2023. Contractors involved with the project Wood, an engineering consulting company, was contracted to provide a production management system and virtual metering system for the project in April 2022. The contract follows a flow assurance and engineering assessment of the riser and umbilical system and a subsea flowlines study conducted in 2018. MODEC International was awarded a contract to supply FPSO for the project in January 2020 followed by an operations and maintenance services contract in December 2020. The contract follows a front-end engineering design (FEED) contract awarded in February 2019. COSCO Shipping Heavy Industry (Dalian) provided the hull and marine works, external turret and topsides module installation, and conversion services for the FPSO vessel. COSCO fabricated topside modules of the FPSO along with BOMESC Offshore Engineering. Keppel Offshore & Marine provided integration of topsides and pre-commissioning and commissioning support services for the FPSO. A joint venture between OneSubsea, Schlumberger and Subsea 7, named the Subsea Integration Alliance, was awarded the FEED contract by Woodside Energy in December 2018 for the subsea infrastructures, comprising subsea umbilicals, risers and flowline systems. Diamond Offshore, Doris Engineering, Earth Systems, Hamworthy Pumps, Penglai Jutal Offshore Engineering Heavy Industries, Transocean and Xodus Group are some of the other contractors involved in the project.
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Post by Blitz on Feb 15, 2024 18:58:33 GMT -5
If you're big oil, you don't build these boats unless finding offshore oil and you're planning to use them. And now this... Floating production platform construction market remains key bright spot in offshore marketplace Feb. 13, 2024 - David Boggs www.offshore-mag.com/field-development/article/14304068/energy-maritime-associates-floating-production-platform-construction-market-remains-key-bright-spot-in-offshore-marketplaceAccess to finance deemed as greatest obstacle, according to FPS market survey. Editor's note: This is an extended version of the cover story that first appeared in the January-February 2024 issue of Offshore magazine. Click here to view the full issue. By David Boggs, Energy Maritime Associates The floating production facility construction market remains one of the brightest spots in the offshore industry today. Offshore development costs remain low, with break-evens under $35/bbl for the most robust projects. Activity levels are expected to remain high from 2024-2026 but will be challenged by capacity constraints and access to finance. The Global Floating Production Industry Survey, now in its eleventh year, gauges the current market sentiment as well as where the industry is heading in the future. Respondents come from all areas of the industry and from all parts of the globe. This year the sentiment is overwhelmingly positive, with 93% of respondents confident in achieving their revenue and production targets. This is a record high in the survey’s 11 years. There has been a continuing trend over the past four years. In 2021, 19% were somewhat or highly pessimistic, which declined to 8% in 2022, 5% in 2023 to 0% this year. On the other end, the number of highly optimistic responses increased dramatically from 29% to 50%. The number of slightly optimistic responses decreased slightly from 48% to 43%. Also decreasing was the percentage of those in the middle, with 7% having a neutral outlook (down from 19% last year). This overwhelmingly shows great confidence in the outlook for the offshore energy sector, with little to no expectations of a negative future. Cost inflation Higher prices are a certainty for 2024 according to all respondents. Increased activity, reduced competition, and general inflation continue to drive this escalation. Over two-thirds expect a 5-10% increase in capex costs, while 20% believe inflation will be more than 10%. This is a significant change from last year, when 40% of respondents believed that costs would increase by more than 10%. The number who expected prices to rise less than 5% remains essentially unchanged (13%). So there seems to be consensus that costs will continue to increase in 2024, but at a slower rate than last year. The main areas pushing cost inflation remain labor, logistics, and commodities. Last year there was more concern over commodities, while this year logistics is a greater issue. Labor continues to be the biggest expected driver of cost inflation according to 28% of respondents, up 5% from last year. Higher interest rates and financing costs remain a concern for 17%, unchanged from 2023. Activity levels Each year we ask respondents their views on future activity levels. Comparing last year’s expectations for 2023 with actual activity, we see that predictions were broadly in-line, with tendering and project execution even busier than predicted. Busy times are expected for the next two years, particularly in tendering and project execution. For 2024, levels for these two areas were the highest ever recorded in the survey’s history, with 61% and 70% expecting high levels of activity for tendering and project management respectively. Activity may ease slightly in 2025, with 52% and 58% of respondents expecting high levels of activity for tendering and project management respectively. Obstacles to growth Access to finance was named as the greatest obstacle to offshore project growth, moving up from second place in 2023 and fourth place in 2022. Financing has been a growing concern, as an increasing number of banks have ceased or restricted funding for hydrocarbon developments. As a result of this and higher financing costs, more field operators have shifted their contracting approach, and contractors throughout the industry are seeking alternative sources of capital, including bonds and private equity. Tied for second place were political issues and industry capacity. Industry capacity has been a growing concern, increasing to 16% of respondents, up from 10% last year, 7% in 2022 and 5% in 2021. Political issues had been the top issue for the past two years, but moved to second place this year. Concerns remain about global conflicts, particularly Russia-Ukraine and in the Middle East. ESG issues/investor sentiment remained in third place this year, unchanged from 2023. Some respondents believe these are an existential threat to the industry and companies certainly factor in these issues when making investments, as seen by Shell’s exit from the UK’s Cambo development. This is another factor contributing to the difficulty in finding finance for these developments. Environmental regulations and more attractive investment opportunities tied for fourth place. Environmental regulations slipped one place from third last year, perhaps as energy security issues and political winds have shifted. More attractive investment opportunities were ranked in sixth place in 2023. Its perception as an increased threat could be due to M&A activity, particularly in the onshore US space. There is continued interest in offshore renewables, despite reassessment and renegotiation of some projects due to unexpected cost increases. The price of oil, which had been the main issue for seven years, has been steadily declining from second place in 2022, to fourth place in 2023, and finally to sixth place this year. Potential bottlenecks Like last year, the main issues are shipyards, fabrication yards, and offshore installation. However, this year there is even more concern from respondents about shipyards. Subsea concerns jumped up from eleventh place in 2022 to fifth place last year to second this year, reflecting a continued tightening in this sector. In addition to a busy offshore sector, there has been a huge surge in demand for renewable infrastructure and shipping, with many companies now having full orderbooks for the next three years. Growth regions Brazil remains the top growth region again this year, as it has been since the beginning of the FPS market survey. Although Petrobras did not award any FPSO contracts in 2023, it has tenders currently in progress for five units to develop new presalt fields as well as replace aging FPSOs in the Campos basin. Independent operators are redeveloping older fields, while larger players such as Equinor and Shell are progressing new developments. EMA is tracking 26 potential projects in Brazil, which could require up to 38 floating production units. In second place is West Africa, unchanged from the last two years. However, the number of votes increased from 16% to 21%, buoyed by the prospects of long-awaited awards in mature areas like Angola as well as new discoveries in frontier areas like Namibia. South America (ex-Brazil) remained in third place, with a growing number of responses (up from 14% to 17%). ExxonMobil has placed orders for six FPSOs and has plans for an additional four units in Guyana (10 in total). There could be potential for double this number to develop the entire basin, which extends to neighboring Suriname. FPS types with growth potential FPSOs remained the clear leader as the floating production system with the most promising growth potential, according to 31% of respondents. Floating wind held second position again, reflecting continued enthusiasm for renewables, despite recent setbacks due to cost overruns and supply chain constraints. FLNG remained in third place, although with less support than last year (13% of responses, down from 19% last year). Perhaps last year there was more optimism driven by the surge in LNG prices and need for energy security. Technology game changers This year, when we asked which type of technology will have the largest impact on the offshore industry, floating wind was again the winner by far, accounting for almost one third of the votes. While still in its infancy, there is a great deal of enthusiasm and hope for floating wind. Time will tell if it can live up to the expectations. FLNG was the top ranked technology in this survey from 2013- 2019, before dropping off the list. This year there was a three-way tie for second place among unmanned production facilities (UPFs), subsea production, and long-distance tiebacks. Several reasons account for UPF’s popularity – the high cost of personnel as a portion of operating costs, application of digital solutions, and increasing comfort with working remotely. While unmanned fixed facilities are common, the technology is just beginning to be transferred to floaters. Even if a completely unmanned facility is not realized, reductions in personnel offshore would result in lower operating costs. In 2022, Chevron placed a $554-million order with Daewoo for the Jansz-Io production semi, which would be the first normally unmanned floating facility. Subsea production moved up one spot with 20% of the vote. Use of this technology can reduce the topside requirements on floating facilities and keep them within existing designs. The Jansz-Io project features a $795-million subsea gas compression station, which is connected to the previously mentioned production semi. Long-distance subsea tiebacks moved up two places this year. This technology could increase the utilization of existing facilities and follows the trend of infrastructure-led investment. Tiebacks certainly will extend the life of currently installed production units, while the impact of future requirements is yet to be seen. Some stand-alone FPS developments could be replaced by tiebacks, while an FPS hub with tieback of multiple fields could also become economic. Measuring the supercycle The oilfield service sector, particularly offshore, has seen strong growth starting in 2021. Deepwater drilling rates are now over $500,000/day with stacked rigs being reactivated against long term contracts. Leading shipyards have full orderbooks for at least the next three-plus years. We asked respondents how much longer this cycle will continue. The vast majority expect this growth to continue for many years to come. About 30% believe that the sector will remain busy through 2025, with 70% saying it will last through 2026 or beyond. This is in-line with the current floating production orderbook, which stands at over 60 units. Forty percent of these are scheduled for delivery in the next year. Another 25% should be completed by 2025. New orders for large floating production units have expected lead times of three to four years. Floating wind There continues to be a great deal of excitement regarding floating wind, with many companies looking to diversify into the renewables space. We asked about the impact of floating wind on the existing floating production sector. Would it compete or be complimentary and over what period? Fifty percent of respondents expected floating wind to be complementary and enable new floating oil and gas units (up from 35% last year). These units could then be powered by renewable sources, rather than from shore, and reduce their carbon footprint. Plans for offshore power grids are underway in addition to stand-alone turbines for individual developments. In a large shift from last year, only 23% (down from 43%) believed that floating wind would be competition for hydrocarbon FPS systems. This change is likely due to the large cost overruns and string of cancelled projects that have been announced for offshore wind developments. As a result, the current consensus is that it will take much longer for offshore wind to compete economically. A growing number also believe that floating wind will not have a significant impact on the floating production sector. In 2022, only 13% held this view. Last year it grew to 20% and to 27%t this year. Demand for floating hydrocarbon production systems remains strong and while there is certainly a huge potential for floating wind, costs have not declined as expected. Recent offshore wind developments have encountered delays and cost overruns, which has caused many to reassess their current and future investments. Conclusion The floating production sector grew further in 2023, continuing a rebound that began in 2021. Industry sentiment is extremely positive, with a record level of respondents optimistic about the future. These busy times are expected to continue for at least the next two to three years, despite expected cost inflation and growing supply chain concerns, particularly with fabrication facilities and shipyards.
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Post by Blitz on Feb 17, 2024 9:54:14 GMT -5
Guyana’s Uaru was MODEC’s highest earning EPCI project of 2023 By OilNOW - February 17, 2024 oilnow.gy/featured/guyanas-uaru-was-modecs-highest-earning-epci-project-of-2023/MODEC unveiled its 2023 financial results, spotlighting a significant profit uplift due to the successful advancement of its engineering, procurement, construction, and installation (EPCI) projects, alongside enhanced asset integrity of its older Brazil floating production, storage and offloading (FPSO) units. Central to this financial prosperity were four EPCI undertakings, with the Uaru project in Guyana, commissioned by ExxonMobil, standing out as the top revenue generator. The Uaru project and Equinor’s Raia project were highlighted among the FPSOs awarded in 2023 as exemplars of MODEC’s EPCI work progress. The company reported that the Uaru project alone contributed an amount in the vicinity of US$800 million to its earnings, outpacing the Raia, Bacalhau, and Sangomar projects, which earned about US$500 million, US$500 million, and US$400 million, respectively. Its total EPCI earnings in 2023 were approximately US$2.5 billion, contributing to overall revenue of approximately US$3.6 billion. The FPSO Sangomar, tasked to MODEC by Woodside Energy, represents a significant milestone, being the first FPSO to arrive in Senegal. Already delivered to Senegal, this vessel is designed to produce 100,000 barrels of oil per day, showcasing a storage capacity of 1.3 million barrels and a gas production capability of 130 million standard cubic feet per day. Moored in waters 780 meters deep, the Sangomar FPSO underscores Senegal’s entry into offshore oil production. In Brazil, MODEC has been advancing with the FPSO Bacalhau and Raia FPSOs, ordered by Equinor. The Bacalhau FPSO, set for first oil in 2025, will operate in water depths of 2,027 meters, boasting a storage capacity of 2 million barrels, and capable of producing 220,000 barrels of oil and 500 million standard cubic feet of gas per day. The Raia FPSO, targeting first oil in 2027, shares similar storage capacity with 125,000 barrels per day output. The FPSO Errea Wittu, earmarked for ExxonMobil’s UAru project in Guyana, is set to make a major impact. Scheduled for first oil in 2026, this vessel is designed for deepwater operations at 1,690 meters, with a storage capacity of two million barrels, an oil production capacity of 250,000 barrels per day, and a gas production capability of 540 million standard cubic feet per day. This vessel is a giant in the global FPSO market. With the Uaru FPSO’s deployment set for 2026, Guyana’s offshore oil production is set to exceed a million barrels per day, reaching a cumulative output of approximately 1.1 million barrels per day across all operational FPSOs by that year. MODEC’s ventures into the Guyanese market, marked by the Uaru FPSO, signal a shift in the competitive landscape, traditionally dominated by SBM Offshore. The MODEC competitor has been contracted by ExxonMobil to deliver five FPSOs, three of which are already operational.
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Post by Blitz on Feb 19, 2024 12:49:23 GMT -5
Shockwave: Petrobras postpones tenders for three FPSOs Brazilian oil giant having a hard time to attract bidders for its offshore projects Difficulties: Petrobras chief executive Jean Paul PratesPhoto: AFP/SCANPIX Fabio Palmigiani, South America Correspondent | Rio de Janeiro - Updated 19 February 2024, 11:16 www.upstreamonline.com/rigs-and-vessels/shockwave-petrobras-postpones-tenders-for-three-fpsos/2-1-1600741Petrobras has pushed back the dates for submission of proposals in key tenders for the charter of three mid-sized floating production, storage and offloading vessels destined for projects offshore Brazil. The decision to delay bidding for a pair of FPSOs to produce from the deep-water section of the Sergipe-Alagoas basin, as well as a unit to revitalise operations at the Barracuda-Caratinga field, takes place as the floater market is tight right now, with operators focusing on other projects with more attractive returns. As it did earlier this year when the company made a last minute call to push back the date in the Sergipe-Alagoas tender, Petrobras has done it again but this time extended the deadline by an additional four months. You need a subscription to read this story
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Post by nickz34 on Feb 19, 2024 12:56:40 GMT -5
Shockwave: Petrobras postpones tenders for three FPSOs Brazilian oil giant having a hard time to attract bidders for its offshore projects Difficulties: Petrobras chief executive Jean Paul PratesPhoto: AFP/SCANPIX Fabio Palmigiani, South America Correspondent | Rio de Janeiro - Updated 19 February 2024, 11:16 www.upstreamonline.com/rigs-and-vessels/shockwave-petrobras-postpones-tenders-for-three-fpsos/2-1-1600741Petrobras has pushed back the dates for submission of proposals in key tenders for the charter of three mid-sized floating production, storage and offloading vessels destined for projects offshore Brazil. The decision to delay bidding for a pair of FPSOs to produce from the deep-water section of the Sergipe-Alagoas basin, as well as a unit to revitalise operations at the Barracuda-Caratinga field, takes place as the floater market is tight right now, with operators focusing on other projects with more attractive returns. As it did earlier this year when the company made a last minute call to push back the date in the Sergipe-Alagoas tender, Petrobras has done it again but this time extended the deadline by an additional four months. You need a subscription to read this story Nail in the coffin for entire offshore sector. Stocks will open limit down tomorrow.
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Post by Blitz on Feb 19, 2024 13:13:36 GMT -5
Shockwave: Petrobras postpones tenders for three FPSOs Brazilian oil giant having a hard time to attract bidders for its offshore projects Difficulties: Petrobras chief executive Jean Paul PratesPhoto: AFP/SCANPIX Fabio Palmigiani, South America Correspondent | Rio de Janeiro - Updated 19 February 2024, 11:16 www.upstreamonline.com/rigs-and-vessels/shockwave-petrobras-postpones-tenders-for-three-fpsos/2-1-1600741Petrobras has pushed back the dates for submission of proposals in key tenders for the charter of three mid-sized floating production, storage and offloading vessels destined for projects offshore Brazil. The decision to delay bidding for a pair of FPSOs to produce from the deep-water section of the Sergipe-Alagoas basin, as well as a unit to revitalise operations at the Barracuda-Caratinga field, takes place as the floater market is tight right now, with operators focusing on other projects with more attractive returns. As it did earlier this year when the company made a last minute call to push back the date in the Sergipe-Alagoas tender, Petrobras has done it again but this time extended the deadline by an additional four months. You need a subscription to read this story Nail in the coffin for entire offshore sector. Stocks will open limit down tomorrow. That's an easy bet... on the under. Meaning stocks will not open limit down.
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Post by Blitz on Feb 20, 2024 8:35:30 GMT -5
Shockwave: Petrobras postpones tenders for three FPSOs Brazilian oil giant having a hard time to attract bidders for its offshore projects Difficulties: Petrobras chief executive Jean Paul PratesPhoto: AFP/SCANPIX Fabio Palmigiani, South America Correspondent | Rio de Janeiro - Updated 19 February 2024, 11:16 www.upstreamonline.com/rigs-and-vessels/shockwave-petrobras-postpones-tenders-for-three-fpsos/2-1-1600741Petrobras has pushed back the dates for submission of proposals in key tenders for the charter of three mid-sized floating production, storage and offloading vessels destined for projects offshore Brazil. The decision to delay bidding for a pair of FPSOs to produce from the deep-water section of the Sergipe-Alagoas basin, as well as a unit to revitalise operations at the Barracuda-Caratinga field, takes place as the floater market is tight right now, with operators focusing on other projects with more attractive returns. As it did earlier this year when the company made a last minute call to push back the date in the Sergipe-Alagoas tender, Petrobras has done it again but this time extended the deadline by an additional four months. You need a subscription to read this story Nail in the coffin for entire offshore sector. Stocks will open limit down tomorrow. The article said 'postpone a few months... not cancel.
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Post by Blitz on Feb 20, 2024 8:37:05 GMT -5
nickz34 ... it's getting too easy to find facts counter to your interpretation of doom and gloom at every corner of the offshore deepwater oil world. And now this... Petrobras postpones to June 2024 the final deadline for bid proposals the Sergipe Aguas Profundas FPSOs brazilenergyinsight.com/2024/02/19/petrobras-postpones-to-june-2024-the-final-deadline-for-bid-proposals-the-sergipe-aguas-profundas-fpsos/(PN) Changes in the Petrobras bidding calendar that foresees the contracting of two platform ships (FPSOs) for the Sergipe Aguas Profundas Project (SEAP). The state-owned company once again postponed the deadline for receiving proposals. When they were released last year, the notices predicted that the deadline for receiving proposals would be October 14th. Afterwards, Petrobras extended the date to January 15th. Now, the state-owned company has extended the deadline to June 14th. According to a source, the new deadline could give more companies time to prepare to participate in the competition. Furthermore, the extra period will also make it easier to find financing alternatives of this size. The two FPSOs will have the capacity to produce 120 thousand barrels of oil per day. The SEAP-I unit will be capable of processing 12 million cubic meters of natural gas per day, while SEAP-II will be able to process 10 million cubic meters of gas per day. For the SEAP-1 platform, the national content required will be 40%. For the SEAP-II unit, the local content will be 30%. The two platforms must be chartered to Petrobras for a period of 7,762 days. As a reminder, the first attempt for the SEAP I platform ended unsuccessfully. The competition was held using the so-called BOT (build-operate-transfer) model. In this modality, the winning bidder builds and operates the ship for an initial period and, subsequently, transfers the plant to the oil company. Ocyan made the only proposal in the process, but negotiations with Petrobras did not progress.
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