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Post by kbair on Mar 16, 2024 21:52:03 GMT -5
This may be a stupid comment, and feel free to say so…..i have thick skin.
I see a huge bottleneck in availability of FPSO’s, which *COULD* hamper contracts. I am sure Transocean management sees this and has built in clauses so RIG isn’t hurt. From memory, pure storage units can easily and quickly be converted to FPSO’s……am I wrong? Is this happening?? I really wish the companies doing this work were easily accessible for investment purposes. …..they trade on the OTCC and are huge risky as all are foreign. Money to be made there.
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Post by Blitz on Mar 17, 2024 9:35:55 GMT -5
This may be a stupid comment, and feel free to say so…..i have thick skin. I see a huge bottleneck in availability of FPSO’s, which *COULD* hamper contracts. I am sure Transocean management sees this and has built in clauses so RIG isn’t hurt. From memory, pure storage units can easily and quickly be converted to FPSO’s……am I wrong? Is this happening?? I really wish the companies doing this work were easily accessible for investment purposes. …..they trade on the OTCC and are huge risky as all are foreign. Money to be made there. I've seen some conversions of semisubs to FPSOs, but I'm uncertain of the time and costs. It looks to me that the biggest FPSOs are the ones getting 'bottlenecked'. The FPSOs that process 200,000 bbls/day. They cost up to $2B. Shipyard space is limited for those. These are going to places with biggest discoveries, like Guyana. Exxon has 6 FPSOs going there, so far. There seems to enough shuttle tankers. //////////////////// Excerpt: www.upstreamonline.com/field-development/chinese-yard-to-convert-drilling-rig-to-floating-production-unit-for-africa-lng-project/2-1-1500435Chinese yard to convert drilling rig to floating production unit for Africa LNG project CIMC Raffles to convert Saipem’s semi-submersible rig Scarabeo 5 into an FPU for Eni venture New lease of life: Saipem’s rig Scarabeo 5 will be converted into a floating production unit at CIMC Raffles.Photo: ROALD EVENSEN Xu Yihe, Singapore, Updated 15 August 2023, 11:43 Chinese yard CIMC Raffles has won a contract from Italian major Saipem to convert its semi-submersible drilling rig Scarabeo 5 into a floating production unit for operation offshore West Africa. The engineering, procurement and construction contract followed last week’s $700 million deal between Saipem and compatriot Eni to convert the Scarabeo 5 into an FPU for operation at the Italian operator’s Congo liquefied natural gas project offshore Congo-Brazzaville. /////////////// Problems with the conversion process... FPSO Hull Conversion: Longer Schedule and Bigger Budget APRIL 1, 2019 bakerobrien.com/case-study/fpso-hull-conversion-longer-schedule-and-bigger-budgetINTERNATIONAL ARBITRATION, SOUTH & CENTRAL AMERICA Project management complexities and challenges surrounded the conversion of an oil tanker to a Floating Production Storage and Offloading (FPSO) vessel. In a dispute over late completion and cost overruns, Baker & O'Brien was retained to investigate the issues that could affect delivery, including original engineering design and design changes. We reviewed the 3-D model for the conversion project, changes to equipment specifications, and evaluated fabrication activities to develop an expert report, which was defended in expert testimony. Floating Production Storage and Offloading (FPSO) vessels are often used to produce oil in remote offshore locations that lack offtake infrastructure. An FPSO can be built either on a new ship hull designed for the purpose or on a used hull that is converted for use as an FPSO. Hull conversion projects have higher schedule and cost risks over new hulls, primarily due to significant uncertainty regarding the vessel condition and the required scope of repairs. In addition, an FPSO conversion often uses different shipyards and contractors for each phase of construction, which introduces additional degrees of complexity into the EPC process. An Owner engaged several contractors located around the world to participate in an FPSO conversion project, including: (1) an engineering company to provide all engineering and design services; (2) a conversion yard to perform hull repairs and modifications; and (3) a module fabrication and integration contractor to procure equipment and to fabricate, install, and integrate the modules on the converted hull. The project was delivered late and encountered large cost overruns, resulting in claims and counterclaims between the Owner and one of the contractors. The Owner alleged that the contractor's work was not fit for purpose and delayed delivery of the FPSO. The contractor alleged that incomplete hull conversion works, incomplete engineering, Owner-instructed changes, and out-of-scope carryover work from other contractors contributed to the large cost overruns and delays. Baker & O'Brien was retained to investigate: (1) the quality and completeness of "Approved for Construction" engineering and design deliverables; (2) whether design changes were implemented late in the process; (3) the extent to which the FPSO modules were delivered late or incomplete; and (4) whether any of these issues could have had a material effect on the delivery of the FPSO. Our investigation involved the review of the computerized 3-D model prepared for the hull conversion and modules, review of changes to equipment specifications and size during procurement, and an evaluation of pipe fabrication activities from design through final inspection and shipping. Our findings were presented in an expert report, reviewed by other experts, and defended in expert testimony.
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Post by bjspokanimal on Mar 17, 2024 10:31:08 GMT -5
The problem with a FPU is that an accompanying tanker has to be used for any storage in the absence of offshore pipelines. Re: new construction, FPSO interest is as high as its ever been as frontier oil exploration moves further and further offshore but the 7 year downturn did constrict yard capacities and balance sheets. I've suspected that FPSO construction capacity could delay drilling fixtures but I haven't heard much commentary to that effect in the industry's quarterly conference calls.
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Post by kbair on Mar 18, 2024 6:57:31 GMT -5
The problem with a FPU is that an accompanying tanker has to be used for any storage in the absence of offshore pipelines. Re: new construction, FPSO interest is as high as it’s ever been as frontier oil exploration moves further and further offshore but the 7 year downturn did constrict yard capacities and balance sheets. I've suspected that FPSO construction capacity could delay drilling fixtures but I haven't heard much commentary to that effect in the industry's quarterly conference calls. That is sort of what I was getting at. At some point FPSO’s could be the bottleneck and not much is being said. I am confident the majors and drillers are on top of it. All these elaborate contracts 3 years out…….i’d hate to see delays due to FPSO shortages. I think I read tankers can be converted to FPSO’s, and maybe shipyards can build new tankers faster.
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Post by Blitz on Mar 18, 2024 7:32:13 GMT -5
Turkey lines up Norwegian FPSO company for game-changing Black Sea gas development Turkish company plans to upgrade Opportunity FPSO to develop second phase of Sakarya gas field Leading figure: Turkish Petroleum chairman Melih Han Bilgin. Photo: TPAO Xu Yihe, Asia Correspondent, Singapore - Updated 18 March 2024, 05:04 www.upstreamonline.com/field-development/turkey-lines-up-norwegian-fpso-company-for-game-changing-black-sea-gas-development/2-1-1613084Turkey’s state-owned Turkish Petroleum TPAO is continuing to negotiate with the Norwegian floating production specialist BW Offshore on the deployment of the BW Opportunity floating production, storage and offloading vessel for the second phase of the Sakarya gas field in the Black Sea. Ashley Sherman, upstream research director for Caspian and Europe at UK-based consultancy Wood Mackenzie, said the second phase of Sakarya signifies a pivotal shift, projected to fulfill nearly 30% of Turkey's gas requirements by 2030. Multiple industry sources said that TPAO is negotiating with BW Offshore on the cost and business model for the latter to operate the Opportunity, which TPAO has already purchased from BW Offshore, before selecting a yard for vessel upgrades. You need a subscription to read this story
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Post by Blitz on Mar 18, 2024 7:33:41 GMT -5
kbair ... Yinson's $5.3 billion Africa FPSO project on course for next milestone Shipyard in Shanghai has workscope for hull and living quarters of Agogo FPSO Agogo FPSO: being converted at HRDD Photo: HRDD Xu Yihe, Asia Correspondent, Singapore - Updated 18 March 2024, 05:48 www.upstreamonline.com/field-development/yinsons-5-3-billion-africa-fpso-project-on-course-for-next-milestone/2-1-1613573The Shanghai-based shipyard Huarun Dadong Dockyard (HRDD) has achieved a major milestone in the conversion of a very large crude carrier into a floating production, storage and offloading vessel for Eni’s Agogo project offshore Angola. Last Friday, HRDD completed the construction and installation of living quarters capable of accommodating 150 people, along with electrical modules and a flare tower, paving the way for a sail-away in July this year, HRDD said. Over the weekend, a delegation from Sonangol, holding a 36.84% stake in Angola’s Block 15/06 where the Agogo project is located, visited HRDD to receive an update on the construction progress of the floater. Eni holds a 36.84% stake in Block 15/06 while China’s state-owned Sinopec holds 26.32%. You need a subscription to read this story /////////////////// Background: Yinson Bags $5.3B Deal for its First FPSO Project in Angola OE Staff Feb 28, 2023www.oedigital.com/news/503226-yinson-bags-5-3b-deal-for-its-first-fpso-project-in-angolaMalaysian company Yinson has secured a firm contract to provide and maintain an FPSO for Azule Energy, a BP-Eni joint venture, in Angola. The contract, awarded by Eni Angola, is for the provision of the FPSO for the Agogo Integrated West Hub Development Project in Angola (“FPSO Agogo”). According to Yinson, the contract is worth about $5.3 billion in total and has a firm period of 15 years from the date of the final FPSO's acceptance. Azule Energy will have the option to extend for another five years. The FPSO Agogo is expected to start operations in the fourth quarter of 2025. The FPSO Agogo will be Yinson's eighth FPSO project in the West African region and its first offshore production project in Angola. The contract increases Yinson's total orderbook to around $22.4 billion. Subsea 7's subsea pipelines and cables Following Yinson's announcement, offshore installation firm Subsea 7 announced it had secured a large contract with Azule Energy to deliver and install about 98 kilometers of flexible pipes, 30 kilometers of umbilical, and associated subsea structures in water depths of around 1,700 m. Subsea 7 defines a large contract as between USD 300 million and USD 500 million. Fabrication will take place at the Sonamet yard in Lobito. Offshore operations are planned between Q4 2024 and Q4 2025. Aker Solutions' Umbilicals The Norwegian offshore engineering and construction firm Aker Solutions said Tuesday it had scored a sizeable contract by Eni Angola, to provide the dynamic and static subsea umbilicals for the Agogo field development. The contract includes the engineering, manufacturing and delivery of a complete umbilical system totaling about 36 kilometers of both dynamic and static subsea production control umbilicals including spares, as well as ancillary equipment and services. The umbilicals will be manufactured at Aker Solutions´site in Moss, Norway. The work starts up immediately and is planned to be delivered in the 2nd quarter of 2024. Aker Solutions defines a sizeable contract as between NOK 0.5 billion (currently around $48,3 million) and NOK 1.5 billion (currently around $145 million). Baker Hughes' subsea equipment Oilfield services giant Baker Hughes said Tuesday it had scored a "major" contract to provide subsea equipment and services for the Agogo offshore oilfield. For Baker Hughes, the scope of work includes 23 standard subsea trees, 11 Aptara manifolds, SemStar5 fiber optic controls, and the related system scope of supply. Baker Hughes will also provide services and aftermarket support for the Agogo integrated west hub subsea production system.
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Post by Blitz on Mar 18, 2024 7:45:43 GMT -5
///////////////////// Final Subsea System Components for Atlanta FPSO En Route to Brazil brazilenergyinsight.com/2024/03/18/final-subsea-system-components-for-atlanta-fpso-en-route-to-brazil/#more-62429(OE) The final pieces of subsea system equipment that will support the production from Enauta’s floating production storage and offloading (FPSO) unit Atlanta at Brazil’s Santos Basin have been shipped. The final pieces of subsea system equipment that will support the production from Enauta’s floating production storage and offloading (FPSO) unit Atlanta at Brazil’s Santos Basin have been shipped. The flexible pipeline system, the final subsea system component that will support the first oil production at the Atlanta field, set sail from England to Brazil on March 15, 2024, Brazilian oil and gas company Enauta has informed. Delivery of the system expected by the end of the month, according to Enauta. The FPSO Atlanta’s first oil is expected in August 2024, in accordance with the initial project’s schedule, the company reconfirmed. In September 2023, Enauta started the installation works on Atlanta’s Phase I, which will bring a larger capacity FPSO to the field that has so far been producing oil via the Petrojarl I FPSO. The FPSO Atlanta will be supplied by Malaysia’s Yinson Production and deployed at Enauta’s Atlanta field, with oil production set with six production wells. FPSO Atlanta has the production capacity of 50,000 BOPD and a maximum storage capacity of 1,251,000 bbls.
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Post by Blitz on Mar 19, 2024 8:55:45 GMT -5
The problem with a FPU is that an accompanying tanker has to be used for any storage in the absence of offshore pipelines. Re: new construction, FPSO interest is as high as it’s ever been as frontier oil exploration moves further and further offshore but the 7 year downturn did constrict yard capacities and balance sheets. I've suspected that FPSO construction capacity could delay drilling fixtures but I haven't heard much commentary to that effect in the industry's quarterly conference calls. That is sort of what I was getting at. At some point FPSO’s could be the bottleneck and not much is being said. I am confident the majors and drillers are on top of it. All these elaborate contracts 3 years out…….i’d hate to see delays due to FPSO shortages. I think I read tankers can be converted to FPSO’s, and maybe shipyards can build new tankers faster. Which yard is leading the race for Brazil FPSO conversion prize? VLCC to be converted into floater destined for Albacora field in Brazil’s Campos basin All smiles: MISC chief executive Yee Yang Chien Photo: MISC Xu Yihe, Asia Correspondent, Singapore - Updated 19 March 2024, 08:52 www.upstreamonline.com/field-development/which-yard-is-leading-the-race-for-brazil-fpso-conversion-prize-/2-1-1614221Chinese yard China Merchants Heavy Industry (CMHI) has emerged as the leading contender to convert a very large crude carrier into a floating production, storage and offloading vessel aimed at revitalising operations at Brazil’s Albacora field. Industry sources said that CMHI’s Yiulian Dock in southern Guangdong province is on the verge of securing a deal with the lead contractor — a joint venture between Brazilian player Ocyan and Malaysia’s MISC. The agreement entails the conversion of a VLCC, currently owned by MISC and stationed in Europe, into the Albacora FPSO. You need a subscription to read this story
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Post by Blitz on Mar 20, 2024 8:32:01 GMT -5
MAN Energy Solutions Lands Major Order for MODEC’s New FPSO brazilenergyinsight.com/2024/03/20/man-energy-solutions-lands-major-order-for-modecs-new-fpso/(OE) MAN Energy Solutions has been hired to supply 11 RB-type compressor trains for MODEC’s floating production storage and offloading (FPSO) unit that will be deployed at the Raia project, in the Campos Basin, offshore Brazil. The order’s substantial value marks it as the largest single order ever received at MAN Energy Solutions Switzerland, the company said, without disclosing the exact value of the contract received from Offshore Frontier Solutions, a MODEC Group company. The compressor trains will be installed on an FPSO vessel for the Raia project, in the Campos Basin, approximately 200 kilometers off the coast of Rio de Janeiro. Equinor, in partnership with Repsol Sinopec Brasil and Petrobras, will operate the FPSO, which is expected to produce up to 126,000 barrels of crude oil per day, and produce and export up to 16 million cubic meters of gas per day. The reservoir, located at a depth of around 2,900 meters, is estimated to contain more than 1 billion barrels of oil equivalent. The MAN compression systems, once operational, will help maintain field pressure, thereby maximizing the quantity and efficiency of gas production. First production is expected in 2028. “We are proud to support the further development of Brazil’s energy industry with this important, large-scale project. With MODEC, we share a solid history of successful FPSO projects around the globe, and we look forward to continuing this excellent collaboration,” said Basil Zweifel, Head of Sales & Project Management, Up- and Midstream at MAN Energy Solutions. MAN Energy Solutions’ scope of supply for the FPSO’s gas lift, injection and export application includes 11 electrically-driven centrifugal-compression trains, deployed as follows two trains with type RB 28-6+3 compressors as overhead units two trains with type RB 45-4+5 compressors as low-pressure units, five trains with type RB 28-5 compressors as medium- and high-pressure units, and two trains with type RB 28-8 compressors as gas injection units. The overhead and gas injection compressor units will be driven by fixed-speed electrical motors, whereas the high- and low-pressure units will be equipped with variable frequency drives. Additionally, the two medium-pressure compressor units will feature a special switch control system, enabling operators to choose between fixed speed and VFD operation according to their requirements. The delivery of the compressor trains is scheduled for the fourth quarter of 2024 and the first quarter of 2025. To remind, the fabrication of a PFSO for the Raia project in Brazil, operated by Equinor on behalf of the Raia project consortium, has officially started at Seatrium’s BrasFELS Shipyard earlier in March 2024.
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Post by Blitz on Mar 21, 2024 12:23:28 GMT -5
Floating Production Systems Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029) www.mordorintelligence.com/industry-reports/global-floating-production-systems-market-industry The Global Floating Production Systems Market is Segmented by Type (FPSO, Tension Leg Platform, SPAR, and Barge), Water Depth (Shallow Water and Deepwater and Ultra-deepwater), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East & Africa). The report offers the market size and forecasts in revenue (USD billion) for all the above segments. Source: www.mordorintelligence.com/industry-reports/global-floating-production-systems-market-industryFloating Production Systems (FPS) Market Analysis The floating production systems market is expected to register a CAGR of over 10% during the forecast period. The market was negatively impacted by the COVID-19 pandemic in 2020. Currently, the market has reached pre-pandemic levels. Over the medium term, factors such as increased offshore exploration activity and focus on offshore oil and gas production development are expected to drive the market for floating production systems. On the other hand, the high cost of FPS systems, combined with the volatile nature of oil prices, are expected to hamper the market's growth. The demand for oil and gas is constantly rising, leading to increased offshore exploration activities. This factor is further expected to act as an opportunity for the market over the forecast period. South America is expected to witness significant growth during the forecast period due to the increasing investments in the offshore sector of countries like Brazil and Guyana, among others. Floating Production Systems (FPS) Market Trends This section covers the major market trends shaping the Floating Production Systems market according to our research experts: Floating Production, Storage, and Offloading (FPSO) to Dominate the Market - FPSOs are the most popular floating production systems due to their additional feature of storing and offloading produced crude oil. Thus, FPSOs account for over 60% of the market share, which is expected to increase further over the forecast period. - FPSOs help in long-distance movements, providing the operator a chance to use them over different regions and fields over their lifetime. - Brazil deployed the maximum number of FPSOs, and it is expected to continue to do so during the forecast period. As of July 2021, 41 FPSOs were operating in the country, with an additional 11 on order. - The increasing energy demand is expected to drive the floating production systems market during the coming decade, as the new exploration activity is at an all-time high. The operators are also often forced to work in much deeper waters that require sophisticated technology and equipment. They also require the capability of storage and offloading oil. - Such factors are expected to drive the market for FPSOs over the forecast period. Understand The Key Trends Shaping This Market South America to Dominate the Market's Growth - The South American region is expected to boost the overall FPS market significantly. Brazil and Guyana are the most significant countries in the market, as the demand for FPS has substantially increased in these countries in recent years. - The offshore oil and gas industry is expected to witness massive investments during the forecast period. In 2020, Rio De Janeiro was the highest crude oil producer in Brazil, as almost all the producing fields were located offshore. The state recorded the production of around 853 million barrels. In 2021, seven out of 10 FPSO contracted projects were from Brazil, with three additional projects to be added to the portfolio in 2022. - In October 2022, Sembcorp Marine won a USD 3 billion contract for a new FPSO for Petrobras. The FPSO P-82 will be deployed at the Buzios offshore oil field in Brazil's pre-salt Santos Basin. - In November 2021, SBM Offshore bagged a FEED contract for the deployment of an FPSO vessel for the Yellowtail Development Project in Guyana. The contract was awarded by Esso Exploration and Production Guyana Limited, the subsidiary of Exxon Mobil. The company plans to fabricate, install, and operate the unit for around two years from the commencement of production. With a production capacity of 250,000 barrels per day, the FPSO is likely to start production in 2025. -Therefore, owing to such developments, the South American region is expected to hold a significant market share during the forecast period. Get Analysis on Important Geographic Markets Floating Production Systems (FPS) Industry Overview The floating production systems (FPS) market is partially consolidated, with some of the top players accounting for a major part of the market. The key players are (in no particular order) Bumi Armada Berhad, Hyundai Heavy Industries Co. Ltd, Keppel Offshore & Marine Ltd, Malaysia Marine and Heavy Engineering Berhad, Mitsubishi Heavy Industries Ltd, and Samsung Heavy Industries Co. Ltd. Floating Production Systems (FPS) Market Leaders TechnipFMC PLC SBM Offshore Keppel Offshore & Marine Ltd Mitsubishi Heavy Industries Ltd. Bumi Armada Berhad *Disclaimer: Major Players sorted in no particular order Need More Details on Market Players and Competitors? Download PDF Floating Production Systems (FPS) Market News In September 2022, Keppel Offshore & Marine won an engineering, procurement, and construction (EPC) tender from Petrobras for the P-83 FPSO, worth USD 2.8 billion. The FPSO is scheduled to be delivered by the first half of 2027. In November 2022, Exxon Mobil Corp. announced its plans to order another floating production storage and offloading (FPSO) vessel for a project in Guyana from SBM Offshore. The two companies signed an MoU for the construction of the FPSO. Floating Production Systems (FPS) Market Report - Table of Contents Source: www.mordorintelligence.com/industry-reports/global-floating-production-systems-market-industry
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Post by Blitz on Mar 22, 2024 6:46:39 GMT -5
Battle heats up in showdown for TotalEnergies $9 billion FPSO prize SBM Offshore offers Fast4Ward design option as Modec faces yard challenges in race for Suriname’s first deepwater floater Potential contract: SBM chief operating officer Oivind Tangen will replace Bruno Chabas as chief executive in April Photo: SBM OFFSHORE Xu Yihe, Asia Correspondent, Singapore - Published 21 March 2024, 23:24 www.upstreamonline.com/exclusive/battle-heats-up-in-showdown-for-totalenergies-9-billion-fpso-prize/2-1-1615694The race to supply TotalEnergies with Suriname’s first deepwater floating production, storage and offloading vessel is hotting up as floater giants SBM Offshore and Modec step up efforts to secure yard space. Dutch floater specialist SBM and Japan’s Modec are engaged in a pitched battle for the prize, presenting proposals to the French supermajor for the $9 billion Sapakara South-Krabdagu development in Block 58 offshore Suriname, with the victor set to secure the crucial engineering, procurement and construction responsibilities for the FPSO. Since late last year, both SBM and Modec have been conducting front-end engineering and design studies in anticipation of vying for the FPSO contract. You need a subscription to read this story
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Post by Blitz on Mar 25, 2024 11:26:34 GMT -5
Brazil approves $1.7 billion funding for Petrobras new frontier FPSOs Credit line will be opened to support contracting of two Sergipe-Alagoas floaters Alternatives: Petrobras engineering, technology and innovation director Carlos Travassos Photo: PETROBRAS Fabio Palmigiani, South America Correspondent, Rio de Janeiro - Published 43 minutes ago www.upstreamonline.com/finance/brazil-approves-1-7-billion-funding-for-petrobras-new-frontier-fpsos/2-1-1617575The Brazilian Merchant Marine Fund (FMM) has made available financial resources to support the contracting of a pair of floating production, storage and offloading vessels destined for the deep-water section of the Sergipe-Alagoas basin. Brazilian oil giant Petrobras has been facing difficulties to contract the SEAP-1 and SEAP-2 FPSOs, having so far postponed three times the deadline for submission of bids in the tender. Floater companies are not displaying much interest in the project given the costs to acquire very large crude carriers in the market to undergo conversion into an FPSO hull, high local content requirements and tough conditions to secure funding. You need a subscription to read this story
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Post by Blitz on Mar 26, 2024 12:17:13 GMT -5
Blue Water Gets Yinson’s Contract for Agogo FPSO Modules Transportation Mar 26, 2024 www.oedigital.com/news/512500-blue-water-gets-yinson-s-contract-for-agogo-fpso-modules-transportationFPSO Agogo (Credit: Yinson Production) Blue Water has secured a substantial logistics contract with Yinson Production to oversee the transportation of the topside modules for the Agogo FPSO, which will be deployed on Azule Energy’s development offshore Angola. The Agogo floating storage production and offloading vessels (FPSO) will be operated by Yinson Production in the West Hub field of Block 15/06 offshore Angola for Azule Energy, which is a joint venture between BP and Eni. Blue Water’s contract involves the transportation of total 15 modules, with the heaviest weighing 3211 metric tonnes. The first transportation is scheduled for May 2024 and will involve both domestic transportation within China and international transportation from Indonesia and Vietnam to China. "This collaboration is a testament to the hard work and dedication of our team at Blue Water. We are eager to contribute our expertise and deliver outstanding logistics solutions,” said Jason Goh, Blue Water’s Regional Director Asia. To remind, Yinson Production secured a $5.3 billion contract from Eni Angola to provide and maintain an FPSO Agogo back in February 2023. The contract has a firm period of 15 years from the date of the final FPSO's acceptance, with an extension option for another five years. The FPSO Agogo is expected to start operations in the fourth quarter of 2025 in the West Hub field of Block 15/06 offshore Angola.
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Post by Blitz on Mar 27, 2024 8:51:01 GMT -5
Australia has steered away from ESG offshore restrictions related to offshore oil & gas E&P... for reliable energy security. Transocean's Equinor will be working Australian waters until 2028. And now this... BW Offshore sticks to $4.6 billion FPSO lease deal Floater specialist puts to rest rumours that unit destined for Santos' Barossa project offshore Australia could look for other jobs Leading figure: BW Offshore chief executive Marco Beenen. Photo: Photo: BW OFFSHORE Xu Yihe, Asia Correspondent, Beijing - Updated 27 March 2024, 04:20 www.upstreamonline.com/exclusive/bw-offshore-sticks-to-4-6-billion-fpso-lease-deal/2-1-1618043Norwegian floating production specialist BW Offshore has affirmed its charter agreement with Australian gas-focused independent Santos for the BW Opal floating production, storage and offloading vessel. The confirmation effectively dismisses market conjecture that the FPSO might be offered for alternative work due to potential project delays arising from legal challenges mounted against Santos’ Barossa field development offshore Australia, thereby solidifying BW Offshore’s commitment to a substantial contract valued at US$4.6 billion. The Barossa contract involves supplying, leasing and operating the BW Opal for an initial 15-year period, with provisions to extend for up to 10 additional years. You need a subscription to read this story
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Post by Blitz on Mar 30, 2024 8:47:08 GMT -5
Following the appraisal of two main oil discoveries – Sapakara South and Krabdagu – in Block 58, combined recoverable resources of close to 700 million barrels in water depths between 100 and 1,000 meters were confirmed for the two fields last year. Feb 27, 2024 And now this... MODEC, SBM Offshore competing for Suriname FPSO award OilNOW - March 30, 2024 oilnow.gy/featured/modec-sbm-offshore-competing-for-suriname-fpso-award/MODEC and SBM Offshore are competing for an engineering, procurement and construction (EPC) award from TotalEnergies for Suriname’s first floating production, storage and offloading (FPSO) vessel, Upstream said in a March 25 report. The publication said the companies have stepped up efforts to secure yard space, after both conducting front-end engineering and design studies since late last year, anticipating the substantive contract. TotalEnergies and its Block 58 partner, APA Corporation, are pursuing a US$9 billion oil development for the Sapakara South and Krabdagu discoveries, estimated to hold 700 million barrels of oil collectively. The FPSO would target production at 200,000 barrels per day (b/d). Total’s Chief Executive Officer, Patrick Pouyanne, had said in February that the company wants to model its approach to leasing FPSOs after Exxon’s work in Guyana. “We try to transfer part of their way to manage some of the leased FPSO in order to be efficient on the costs,” he had stated. So far, SBM Offshore has delivered all three of the floaters operating in Guyana and is set to deliver two more. MODEC was hired for the Uaru project. Both companies have been challenged by Exxon to deliver large FPSOs with world-leading production capacities. Suriname is banking heavily on offshore oil to be a hail mary for its troubled economy. The government even tied a debt restructuring program to future oil royalties from the Block 58 project, as part of an economic recovery program guided by the International Monetary Fund. Staatsolie said in a February release that there was no reason to consider delays to the TotalEnergies-led Block 58 project, after Pouyanne said the company could delay one of four projects destined for Brazil and Suriname, due to cost considerations. The plan of development for the Block 58 project is expected to be submitted this year, with approvals and sanctions expected by year-end. Total and APA are targeting first oil in 2028.
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Post by Blitz on Apr 1, 2024 11:32:14 GMT -5
Petronas Starts Construction of Malaysia's First Nearshore FLNG Facility Apr 1, 2024 www.oedigital.com/news/512620-petronas-starts-construction-of-malaysia-s-first-nearshore-flng-facilityMalaysia’s state-owned energy company Petronas has started the construction of its nearshore floating liquefied natural gas (FLNG) unit, set to become Malaysia’s first such facility once in operation. A steel cutting ceremony for the nearshore FLNG facility was held at the Samsung Heavy Industries (SHI) Shipyard in Geoje Island, South Korea. This third FLNG facility by Petronas is designed to produce up to 2.0 million tonnes per annum (MTPA) of LNG and is targeted to start commercial operations by the second half of 2027. Focusing on sustainability and innovation, the upcoming nearshore FLNG facility incorporates technologies such as energy-efficient power generation systems and aero-derivative gas turbines to reduce its carbon footprint. Upon completion, the nearshore FLNG facility will be moored at the Sipitang Oil and Gas Industrial Park (SOGIP) and is expected to attract new investments to the area. “Together with our partners in Sabah, we look forward to unlocking Sabah’s gas reserves in an optimized and environmentally sustainable manner, aligned with our efforts to provide energy security and position Malaysia as a key global hub for lower-carbon energy. “The nearshore FLNG facility is our latest advancement in Floating LNG technology and the culmination of expertise that we have gained from PFLNG Satu and PFLNG Dua,” said Adnan Zainal Abidin, Petronas’ Chief Operating Officer and Executive Vice President & Chief Executive Officer of Gas Business.
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Post by Blitz on Apr 1, 2024 11:34:06 GMT -5
MODEC Gets FEED Job for Shell’s Gato do Mato FPSO Apr 1, 2024 www.oedigital.com/news/512619-modec-gets-feed-job-for-shell-s-gato-do-mato-fpsoMODEC has secured the Front-End Engineering and Design (FEED) contract for a floating production storage and offloading (FPSO) system for Shell’s Gato do Mato development, offshore Brazil. Gato do Mato FPSO will be moored at a water depth of approximately 2,000 meters, some 250 kilometers off the coast of Brazil. MODEC will be responsible for the design of the hull and all related topsides facilities for the FPSO, which is projected to be moored by a SOFEC Spread Mooring system. The produced stabilized crude will be stored in the FPSO tanks and the oil will be offloaded to shuttle tankers to go to market. MODEC has previously delivered 16 FPSOs to Brazil and has two more under construction currently. The FPSO Gato do Mato would be the second unit to be delivered directly to Shell by MODEC for operation in Brazil. “MODEC is proud to be working on its nineteenth (19th) FPSO for Brazil and our second for Shell in Brazil. This milestone indicates the strong relationship between the two companies which now spans more than 20 years. We are excited about performing this FEED study for Shell,” said Hirohiko Miyata, MODEC’s President and CEO. Gato do Mato is a deepwater pre-salt oil and gas discovery located in the Santos Basin. Shell is still evaluating the development solution for the project and final investment decision (FID) for the project is expected in 2025.
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Post by Blitz on Apr 2, 2024 7:15:50 GMT -5
ESG wonks hate it when people do the real math vs their fairy tales. And now this... Six FPSOs at peak production will utilize just 7% of Guyana’s massive carbon sink capacity annually – VP Jagdeo By Kiana Wilburg - April 2, 2024 oilnow.gy/news/six-fpsos-at-peak-production-will-utilize-just-7-of-guyanas-massive-carbon-sink-capacity-annually-vp-jagdeo/Even with six floating production, storage and offloading (FPSOs) vessels operating at peak production, Guyana’s oil operations would only utilize 7% of the 150 million tonnes of emissions sequestered by its forests annually. So said Guyana’s Vice President, Bharrat Jagdeo, during a recent press conference. The chief policymaker for the oil sector made this point on the heels of a heated interview that BBC journalist, Stephen Sackur, had with President Irfaan Ali. Sackur said many people believe that Guyana will move from being a carbon sink to a carbon bomb and that the development of its oil resources will emit over 2 billion tonnes of carbon. “That figure is absolutely wrong,” said the Vice President in strong objection. “We did a quick calculation and if you look at the figure that was submitted in the Environmental Impact Assessments (EIA) for the licensing of the FPSOs, it was submitted that the maximum emission per FPSO would be 2 million tonnes of CO2 per annum,” he said. Guyana will be carbon negative even when producing oil at 1.5 million b/d – Jagdeo | OilNOW The Vice President was keen to note that while the foregoing figures are much lower at the moment, even in using those numbers, the use of the forests’ carbon sequestration budget is still significantly low. “Even if we use those figures, 2 million tonnes per annum and we have 6 FPSOs which will give us between 1.2 to 1.5 million barrels of oil per day, that is 12 million tonnes of CO2 emissions per year,” said the official. Taking into account that Guyana’s forests sequester over 150 million tonnes of carbon from the atmosphere annually, Jagdeo said 12 million tonnes of CO2 from 6 FPSOs would only account for 7% of the carbon that the forests sequester. Jagdeo also made the distinction that the 12 million tonnes of CO2 represent Scope 1 and 2 emissions. Should the impact of Scope 3 emissions be added, Jagdeo said the utilization of the carbon sequestration would still be low. Guyana oil production could reach almost 1.5 million bpd by 2027 | OilNOW “So, how do we calculate this? We looked at 1.5 million barrels per day from the 6 FPSOs over 365 days…and then multiplied that by the carbon content which is 40kg of CO2 equivalent per barrel, and that gives you about 24.7 million tonnes per year,” the Vice President explained. He noted that under the United Nations’ accounting convention for emissions, Guyana does not have to consider Scope 3 emissions as these are not burnt onshore. But even if it were added, Jagdeo said Scope 1, 2 and 3 emissions would still account for 25% of the annual carbon sequestration by the forests. In the end, Jagdeo said Guyana will remain a carbon sink, even at peak production.
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Post by Blitz on Apr 2, 2024 7:20:58 GMT -5
Guyana emerges as hotspot for operator-owned FPSOs amid global fabrication yard lead time challenges OilNOW - April 2, 2024 oilnow.gy/featured/guyana-emerges-as-hotspot-for-operator-owned-fpsos-amid-global-fabrication-yard-lead-time-challenges/As lead times at fabrication yards across key regions lengthen, Guyana’s prominence in the FPSO (floating production, storage and offloading vessel) market grows, fueled by major ExxonMobil-led developments. According to a recent report by Rystad Energy, competition among projects has surged, prompting a shift towards operator-owned FPSOs, particularly among financially robust exploration and production companies. The report highlights that lead times for converted and newbuild hulls and topside modules have notably extended in fabrication yards in Singapore, China, South Korea, and Brazil. Mega projects with oil and gas processing capacity exceeding 200,000 barrels per day (b/d) are becoming the norm, with construction costs surpassing US$1 billion for conversions and $2 billion for new builds. Guyana, Brazil driving global FPSO market this decade – Rystad | OilNOW “Competition among FPSO leasing companies has intensified, resulting in record backlog levels. Some contractors are refraining from participating in tenders with restrictive local content rules, further inflating day rates for leasing opportunities. Additionally, supplier financing costs have escalated due to higher interest rates and a dwindling pool of banks willing to finance oil and gas projects,” Rystad Energy pointed out. In response to these challenges, several operators, especially major E&P companies with strong financial health, opt for owned units. Rystad Energy said this strategy allows them to share risks and investment needs for FPSO fabrication and installation, mitigating delays and lowering costs. Exxon encouraged by prelim work on Guyana’s 5th FPSO as new builder enters market | OilNOW The demand for operator-owned FPSOs has particularly concentrated in South America, with ExxonMobil’s developments in Guyana emerging as a significant focal point. Other major projects contributing to this trend include the massive Buzios pre-salt ventures for Petrobras’ and Equinor’s Raia and Bacalhau assets in Brazil. Rystad Energy predicts this trend will persist, with more operator owned FPSOs anticipated, especially in West African developments, until activity and interest rates subside.
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Post by Blitz on Apr 2, 2024 7:45:03 GMT -5
Eni eyes fast-track options including FPSO for Cyprus gas project Upstream understands at least three options are on the table for major deepwater development Eni chief executive Claudio Descalzi. Photo: REUTERS/SCANPIX Iain Esau, Xu Yihe, London/Singapore - Published 2 April 2024, 00:52 www.upstreamonline.com/exclusive/eni-eyes-fast-track-options-including-fpso-for-cyprus-gas-project/2-1-1618565Eni is aiming as early as the next quarter to choose the preferred development concept for its deepwater gas discoveries offshore Cyprus. with at least three options on the table. The Italian major estimates its three discoveries in Block 6 — Cronos, Calypso and Zeus — hold about 4.5 trillion cubic feet of in-place gas resource, but that was before it conducted a successful flow test on a Cronos appraisal well last November that flowed 150 million cubic feet per day of gas. That successful test triggered the company to say it was looking at a fast-track project. You need a subscription to read this story
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Post by Blitz on Apr 2, 2024 11:52:54 GMT -5
Petrobras must really want these FPSOs ASAP. And now this... Contractors voice concern over new Petrobras FPSO funding strategy Brazilian state-controlled operator aims to overcome significant delays in contracting dates Options: Petrobras chief executive Jean Paul Prates Photo: MAURICIO PINGO/PETROBRAS Xu Yihe, Asia Corresponden, tSingapore -Updated 2 April 2024, 10:11 www.upstreamonline.com/rigs-and-vessels/contractors-voice-concern-over-new-petrobras-fpso-funding-strategy/2-1-1618941Concerns continue over Petrobras’ strategy for the chartering of floating production, storage and offloading vessels, as the Brazilian company changes its approach to lease-and-operate tenders in an effort to overcome financial barriers for contractors. Petrobras late last year agreed to increase upfront payment from $300 million to $1 billion during the construction phase of the two FPSOs intended to produce from the deep-water section of the Sergipe-Alagoas basin offshore Brazil to try to boost interest in the tender. The strategic shift, where Petrobras is to disburse up to 30% of the contract value upfront to floater specialists, was reinforced during a two-day conference in China attended by global FPSO contractors, banks, financial institutions and yards. You need a subscription to read this story
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Post by Blitz on Apr 3, 2024 6:34:27 GMT -5
Petrobras axes critical FPSO tender over high bids Brazilian oil giant fails to contract floater to revitalise ageing Campos basin field No deal: Petrobras chief executive Jean Paul Prates Photo: AFP/SCANPIX Fabio Palmigiani, South America Correspondent, Rio de Janeiro - Updated 3 April 2024, 05:38 www.upstreamonline.com/field-development/petrobras-axes-critical-fpso-tender-over-high-bids/2-1-1619349Brazilian state-controlled oil company Petrobras has cancelled a tender for the charter of a mid-sized floating production, storage and offloading vessel to help revitalise operations in the mature Albacora field in the country’s prolific Campos basin. Petrobras had been in exclusive talks with Brazilian player Ocyan for months to contract the Albacora FPSO after negotiations with Norwegian floater specialist BW Offshore, which was the low bidder, fell apart. A few weeks ago in a press conference to detail the company’s 2023 financial results, Petrobras engineering, technology and innovation director Carlos Travassos said the contracting of the Albacora FPSO was a “challenging process” but expressed hope to close the deal in April. You need a subscription to read this story
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Post by Blitz on Apr 4, 2024 8:50:05 GMT -5
Without holes going into the sea floor via floaters, you don't need FPSOs and this company isn't getting 'largest-ever' contracts. And now this... Singapore FPSO fabricator awarded largest-ever single contract Dyna-Mac specialises in construction of topsides processing modules for FPSOs Order book boosted: Dyna-Mac chief executive Lim Ah Cheng Photo: DYNA-MAC HOLDINGS Russell Searancke, Norway Correspondent - Updated 4 April 2024, 03:14 www.upstreamonline.com/rigs-and-vessels/singapore-fpso-fabricator-awarded-largest-ever-single-contract/2-1-1620703Singapore oil and gas fabricator Dyna-Mac has been awarded the largest contract in its history to reflect the buoyant state of the global floating production, storage and offloading market. Dyna-Mac specialises in the construction of large oil and gas processing modules that form part of the “topsides” for FPSO vessels. The company announced the new contract as part of a package of new orders. You need a subscription to read this story
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Post by Blitz on Apr 5, 2024 8:38:56 GMT -5
Yinson delivers $5.2 billion Brazil PSO five months ahead of first oil Maria Quiteria floater is destined for Petrobras' Parque das Baleias project offshore Brazil Xu Yihe, Asia Correspondent, Singapore - April 5, 2024 www.upstreamonline.com/rigs-and-vessels/yinson-delivers-5-2-billion-brazil-pso-five-months-ahead-of-first-oil/2-1-1621878Ready for action: the Maria Quiteria FPSO will soon be towed away for first oil in September in Brazil Photo: COSCO Malaysian floater specialist Yinson has christened a floating production, storage and offloading vessel destined for Petrobras’ Parque das Baleias development in the northern portion of Brazil’s Campos basin. The christening ceremony at Cosco’s Shanghai yard this week marked a milestone ahead of anticipated first oil from the Maria Quiteria FPSO, which is scheduled for September this year, Cosco said. However, according to Petrobras’ five-year business plan through 2028, the Maria Quiteria FPSO is earmarked to enter operation in 2025. You need a subscription to read this story
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Post by Blitz on Apr 6, 2024 7:44:37 GMT -5
From start to finish it looks like a roughly 3 year process. I'm not sure how Covid would have played out in the ship yards. And now this... Converted Jubarte FPSO officially named in China April 5, 2024 www.offshore-mag.com/vessels/article/55003542/converted-jubarte-fpso-officially-named-in-chinaYinson Production has held a naming ceremony for the FPSO Maria Quitéria at Cosco Shipping Heavy Industry (Shanghai) Shipyard in China. Offshore staff SINGAPORE — Yinson Production has held a naming ceremony for the FPSO Maria Quitéria at Cosco Shipping Heavy Industry (Shanghai) Shipyard in China. The converted vessel, destined for Petrobras’ Jubarte Field in the northern Campos Basin offshore Brazil, has capacities to produce 100,000 bbl/d of oil and to store 1 MMbbl. It is the first in Yinson’s FPSO fleet to employ heat recovery steam generation as part of its combined cycle power generation system. Petrobras awarded the contract in late 2021, and conversion works started in January 2022. All topside modules are in place and integrated, and commissioning has started. The vessel is due to depart for Juvrate during the second quarter. Maria Quitéria is Yinson third FPSO for the Brazilian sector following the Anna Nery, which has been operating for Petrobras since last May, and FPSO Atlanta, which recently delivered to Enauta Energia for the Atlanta oil field. 04.05.2024 ____________________ Chinese Shipbuilders See Slowing of Orders Amidst COVID Impact in 2022 Chinese shipbuildingChinese shipbuilding reported a global slowdown in orders and a short-term impact from COVID-19 (CSSC) PUBLISHED JUN 1, 2022 - BY THE MARITIME EXECUTIVE maritime-executive.com/article/chinese-shipbuilding-sees-slowing-of-orders-and-coivd-impact-in-2022China’s shipbuilding industry is showing significant signs of a slowdown, in part has been hard hit by the latest waves of the pandemic which delayed the production schedule for a broad range of ships. While the yards and specifically the industry centered around Shanghai are emphasizing their return to operations in recent weeks, the first four months of 2022 showed a marked slowdown in activity. Data from the China Association of the National Shipbuilding Industry (CANSI) illustrated the scope of the impact of COVID-19 on the shipbuilding industry in 2022. For the first four months of the year, the total output by the shipbuilding industry of 11.71 million dwt was down nearly nine percent versus a year ago. Domestic volumes appear to be stronger as CANSI reports that exports were down nearly 15 percent to 10.28 million dwt. Exports or orders of ships for international shipowners however continue to make up the vast majority of the business at Chinese shipyards. The data highlights that nearly 90 percent of the volume from the shipyards in the first four months of 2022 was for export. Also, reflecting the rising costs and high prices for ships they reported that the value of the export ships topped $5.8 billion and while it was off by more than 10 percent it was a smaller decline than the volume of export tonnage. Global newbuilding orders from shipowners are also declining from last year’s peak. CANSI reported that the Chinese shipbuilding industry received orders for 15.39 million dwt, which was down nearly 45 percent year over year. Most of the decline was coming from international shipowners with export orders for the Chinese shipbuilders down nearly 45 percent in the first four months of 2022. Despite the drop from 2021’s record levels, so far in 2022, China added another 13.66 million dwt in export ship orders. The shipyards are reporting that they are working hard and quickly moving back to full capacity after having been closed for most of April and into May. China Shipbuilding’s Hudong-Zhonghua shipyard was able to proceed with work for most of May, reporting that it passed milestones for six ships in the first part of the month. This included sea trials for an 80,000 cbm LNG carrier, starting the engine for a new 13,000 TEU containership, moving Evergreen’s second 24,000 TEU containership out of the dry dock, and starting final assembly work on another LNG carrier. Similarly, just a week after restarting operations, the Jiangnan Shipyard was able to deliver an LNG dual-fuel Newcastlemax bulk carrier to EPS, while another Newcastlemax bulk carrier and an Aframax crude oil tanker each achieved milestones in their construction last week. Two other vessels were also repositioned in the dry dock for the next phase of construction with the shipbuilder located near Shanghai vowing to make up for lost time and complete its project on time. While the industry has been impacted by COVID-19 and the global slowing in orders, the Chinese shipbuilders continue to have a large orderbook. As of the end of April, a total of 102.47 million dwt was on order up more than 20 percent versus 2021. Export ports make up 89 percent of the total orderbook. Chinese shipbuilding remains the largest segment of the global industry winning 54 percent of the new orders in 2022. China’s backlog accounts for just under half the total market volume for new ships.
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