2018 Offshore Technology Yearbook

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Page 40 of 55 | December 2017 | 39 Signs of recovery for FPSOs Analysts following the fixed and floating structure market at IHS Markit reported some of the first good news of the year in February with the Ophir Production contract to Malaysia-based MTC Engi- neering to supply the floating, production, storage and offloading (FPSO) vessel, Ledang. An oil tanker named Puteri Bangsa will be converted into an FPSO with processing capacity of 15,000 bbl/d of fluid and storage capacity of 350,000 bbl of oil. The vessel was scheduled to begin producing the shallow-water, marginal Malaysian Ophir Field this year. Other FPSO awards followed, with Repsol announcing a Final Investment Decision (FID) in May to develop the Ca Rong Do (aka Red Emperor) discovery in Block 07/03 offshore Vietnam. Yinson Holdings Bhd, based in Malaysia, was contracted to supply and maintain the FPSO. Data from EMA indicates the development will use a wellhead TLP connected to the FPSO. A contract for the con- struction of the TLP was awarded to Petrovietnam Technical Services Mechanical & Construction Co. Ltd., which will build the unit in Vietnam. In mid-June Exxon Mobil published a press release announcing an FID for the first phase of the Liza Field, approximately 118 miles offshore Guyana in water depths of 4,900 ft to 6,200 ft on the Stabroek Block, which covers 6.6 million acres. Liza is one of the largest oil discoveries of the past 10 years according to Exxon Mobil, which estimates gross recoverable resources between 2 Bboe and 2.5 Bboe. Phase 1 includes a subsea production system and an FPSO to be supplied by SBM for produc- tion beginning in 2020. The FPSO is designed to produce up to 120,000 bbl/d of oil. Perenco affiliate Dixstone Holdings Ltd. also made an announcement in the summer, awarding Keppel Offshore & Marine Ltd. subsidiary, Keppel Shipyard Ltd. a contract to convert the M/T Tempera into an FPSO for the Yombo Field offshore the Repub- lic of the Congo. The conversion work was expected to begin in third-quarter 2017. Upon its expected delivery in third-quarter 2018, the FPSO will replace the Conkouati FPSO (converted by Keppel Shipyard in 1991), which has served the field for more than 25 years. There also were several FPSOs redeployed this year. The first announcement came in April, when Alpha Petroleum issued a press release outlining an exclusivity agreement with Teekay Offshore to carry out front-end engineering and design on its Varg FPSO (removed from Repsol's Varg Field in the Norwegian North Sea in July 2016). Varg will be redeployed on the Cheviot Field, which the company describes as one of the largest undeveloped oil fields in the U.K. sector of the North Sea. Alpha expected to achieve sanction for the development during third-quarter 2017 and is targeting first oil production in 2019. In an official statement, Alpha Petroleum Exec- utive Chairman Andy Crouch called the agreement, "a key milestone in the development of Cheviot Field," noting that it is the product of "innovative thinking and continued investment during a down- turn in the market." COSCO Nantong Shipyard in Qidong, China, completed work on the Western Isle FPSO, a Sevan -5 0 5 10 15 20 25 30 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* Deliveries Removals Contracts No. of Units *y-t-d Incl. FLNG FPSO Deliveries, Removals and Contracts Data indicate that the FPSO/FLNG sector is more stable than it was a year ago. (Source: Clarksons Research)

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