Technip Wins Contract For Prelude FLNG Work

Shell Australia has awarded Technip a contract to provide engineering and design services for the Prelude FLNG project offshore Australia.

Technip’s work will include providing concept, FEED and engineering, procurement, construction management and precommissioning, commissioning and hand-over services.

The company also will be responsible for providing operational testing support; scope and portfolio management services such as cost and planning support, and document management and control; and specialist engineering support to supplement Shell Australia’s team, Technip said in a news release.

Technip’s center in Perth, Western Australia, will lead, manage and deliver the contracted work.

Engie Flows Gas From North Sea’s Cygnus Field

Engie E&P UK Ltd. and its partners, Centrica and Bayerngas, have achieved first gas production and export from the Cygnus Field in the Southern North Sea.

The four-platform complex has 10 wells and two subsea structures. Gas from the development is being exported to the Bacton gas terminal in North Norfolk, the company said.

“First gas from Cygnus represents a significant boost to the U.K.’s long-term energy security, with an estimated production life exceeding 20 years,” said Ruud Zoon, managing director for Engie E&P. “Furthermore, with over 80% of the contract work secured by British businesses—including fabrication yards in Hartlepool, Methil and Burntisland—it is a showcase for the technical and commercial excellence of the U.K. oil and gas supply chain.”

Cygnus is located in license areas P1055 and P1731. It is expected to contribute 5% of U.K. gas production, Engie said.

The partners are evaluating additional opportunities in the Greater Cygnus area in hopes of adding volumes through Cygnus when capacity becomes available, the company said.

Engie is the operator with 38.75% interest. Partners Centrica and Bayerngas hold 48.75% and 12.5%, respectively.

Shell Begins Oil Production From Malikai Offshore Malaysia

Shell has started oil production from the Malikai tension-leg platform offshore Malaysia, the company’s second deepwater project offshore the southeastern Asian country.

Malikai, located in water depths of up to 500 m (1,640 ft), is expected to have a peak production of 60,000 bbl/d, Shell said in a news release.

“The project features a cost-effective platform design and a unique, industry-first set of risers, or pipes that connect the platform to the wells for oil production, which required fewer drilling materials and lower costs,” Shell said.

The Malikai project is a joint venture between Shell (35%, operator), ConocoPhillips Sabah (35%) and PETRONAS Carigali (30%). In 2014 Shell started up the Gumusut-Kakap platform offshore Malaysia.

Leviathan Partners Approve 2019 Natural Gas Production Target

The Israeli partners in the Leviathan gas field said Dec. 12 that they approved a development plan for the field with a target production date for year-end 2019.

The plan, the group said in a statement to the Tel Aviv Stock Exchange, includes a first stage development for production of about 12 Bcm/year (424 Bcf/year) at a cost of $3.5 billion to $4 billion.

The Israeli partners in Leviathan, one of the world’s biggest offshore natural gas discoveries of the past decade, include Delek Drilling and Avner Oil, each with a 22.67% stake, and Ratio Oil with a 15% stake.

A final investment decision in the project also will require approval from the field’s operator, Texas-based Noble Energy, which has a 39.66% share.

With estimated reserves of 621 Bcm (22 Tcf), the Leviathan partners have signed an export deal in Jordan and are exploring the possibility of selling gas in Egypt, Turkey and Europe.

In November the group signed commitment letters with HSBC and J.P. Morgan for up to $1.75 billion of financing for the A1 development stage of the project.

Chevron Selects RINA For Quality Assurance Services

Chevron Indonesia has tapped PT RINA Indonesia, in consortium with PT Depriwangga, to provide quality assurance inspection services for its Bangka Field project offshore Indonesia

Located at a water depth of 975 m (3,200 ft), the two subsea well development will be connected via a single flexible flowline to the existing West Seno floating production unit, which is located south of the field. The field has two gas-condensate reservoirs.

RINA Indonesia will provide the inspection services for material and component fabrication, installation, testing, precommissioning and commissioning activities, the company said in a news release. RINA also will carry out third-party expediting services for materials and equipment purchased for the project.

The contract, which lasts for 12 months, is valued at an estimated $1.3 million.

Maersk Oil Trims Costs At Culzean HP/HT Project In UK North Sea

Higher drilling efficiency and robust upfront design and project planning are the driving factors behind the ability of Maersk Oil to shave off about $500 million in capital costs for the Culzean HP/HT gas condensate project, the company said.

The cuts bring the investment costs for the project down to about $4 billion, putting the current breakeven estimate at $33/boe.

“This updated forecast reflects Maersk Oil’s commitment to world-class project execution and our aim to continually improve our major capital projects, together with our partners and suppliers,” Maersk Oil CEO Gretchen Watkins said in a company statement. “Achieving cost reduction of 11% during project maturation, we are showing our ability to deliver greater value for investors and stakeholders through effective project delivery and controls.”

The Culzean Field, located in the U.K. Central North Sea, is being developed by Maersk working with partners BP and JX Nippon. The field is believed to have estimated resources of up to 300 MMboe. Production is scheduled to begin in 2019 and run for at least 13 years, according to Maersk, which said plateau production will be between 60,000 boe/d and 90,000 boe/d.

Subsea Integration Alliance Wins Deepwater Integrated EPCIC Contract

Subsea Integration Alliance, formed in 2015 between OneSubsea, Schlumberger and Subsea 7, has secured the industry’s first deepwater integrated subsea engineering, procurement, construction, installation and commissioning (EPCIC) multiphase boosting system award, a news release said.

The contract, which is for the Dalmatian Field in the Gulf of Mexico, was awarded by Murphy Exploration & Production Co. for the industry’s longest deepwater subsea multiphase boosting tieback. As part of the contract, Subsea Integration Alliance will supply and install the subsea multiphase boosting system, which includes the topside, subsea controls and a 35-km (22-mile) integrated power and control umbilical.

The alliance enables a turnkey integrated project from design through supply, installation and commissioning, the company said.

“This fit-for-purpose subsea boosting technology will improve Murphy E&P’s ultimate recovery through a cost-effective, record tieback,” said Mike Garding, president, OneSubsea, Schlumberger. “The innovative business model of the alliance further contributes to greater certainty of cost and return on investment.”

Subsea 7 CEO Jean Cahuzac added, “This contract recognizes our successful alliance model that brings together Subsea 7’s SURF technology and extensive track record in delivery of large-scale complex EPCIC projects, with OneSubsea’s reservoir and subsea production, and processing systems technologies.”

Odfjell Scoops Up Brage Platform Drilling Contract

Wintershall Norge has awarded a drilling contract for the Brage platform, where the company serves as operator, to Odfjell Drilling, a news release said.

As part of the contract, Odfjell will provide complete platform drilling services and maintenance of the drilling facility. The four-year contract, with extension options for up to four more years, contains performance-based incentives that share gains from efficient execution between the operator and contractor, the release said.

The contract was awarded after a planned drilling break on the field aimed at preparing the platform for a sustainable development path; however, the contract does not guarantee any wells will be drilled.

Wood Group, Heerema Team Up For Wellhead Platform Development

As companies seek ways to lower offshore field development costs, Wood Group and Heerema Fabrication Group (HFG) have agreed to work together in the area of wellhead platform development.

The companies signed a memorandum of understanding (MoU) that will see the two work together to offer wellhead platform development—from design to installation, hookup and commissioning—for clients on the Norwegian Continental Shelf, according to a news release.

“This MoU positions us to provide innovative services to clients, through integrating Wood Group’s strong global engineering expertise and in-depth knowledge of the Norwegian sector with HFG’s broad experience and know-how for construction and installation in the North Sea offshore industry,” Dave Stewart, CEO for Wood Group’s Asset Life Cycle Solutions business in the Eastern Hemisphere, said in the statement.

Subsea 7 Wins Contract For Woodside Project Offshore Australia

Woodside Energy Ltd. has awarded Subsea 7 a contract for its Greater Western Flank (GWA) Phase 2 Project offshore Australia.

The contract scope includes the subsea tieback of adjacent fields to the GWA platform. Work includes the installation of manifolds, umbilicals and spool pieces, plus precommissioning of the system, a news release said.

Project management and engineering were set to begin immediately from Subsea 7’s office in Perth, Australia, with offshore operations scheduled to start in 2018.

The contract is valued between $50 million and $150 million.

Bibby Gears Up For Engineering, Subsea Construction Work For Shell

Subsea services provider Bibby Offshore will carry out engineering and subsea construction activities in 2017 after landing a contract for the Shell-operated Gannet G Field in the North Sea.

The work, which is scheduled to begin in first-quarter 2017, will involve use of the Bibby Polaris multipurpose dive support and offshore construction vessel. The vessel will lay flexible pipe systems in water depths of about 95 m (312 ft).

This isn’t Bibby’s first time working with Shell. In 2016 the company provided construction and inspection services for Shell on the Corrib natural gas field in the North Atlantic Ocean.

Faroe Completes Acquisition Of Norwegian Production Assets

Faroe Petroleum has completed its acquisition of interests in five Norwegian North Sea producing oil and gas fields from Dong E&P Norge AS.

The assets and interests are Ula (20%), Tambar (45%), Tambar East Unit (37.8%), Oselvar (55%) and Trym (50%).

The net consideration payable at completion was about $26.7 million, which was less than the previously announced $70.2 million. The difference, Faroe said, reflects both economic production from Jan. 1, 2016, which has outperformed previous expectations and other working capital adjustments.

As of Jan. 1, the remaining proved and probable reserves from the acquisition were 19.8 MMboe net to Faroe Petroleum, the company said in a news release. The preliminary average economic production for the 11 months to Dec. 1, net to Faroe, was about 9,900 boe/d.

“The acquisition of these producing fields creates a new strategic hub for Faroe, centered on the Ula platform, in one of our core areas offshore Norway,” Faroe Petroleum CEO Graham Stewart said in a statement. “Synergies already have been realized with the upcoming development of our Oda Field, announced [Nov. 30], which will be tied back subsea to Ula.”

—Staff & Reuters Reports

Offshore