Topsides Construction Begins For Liza FPSO Unit
Construction for the Liza FPSO unit, which is destined for the ExxonMobil-operated Liza Field offshore Guyana, has begun at the Dyn-Mac yard, according to SBM Offshore, the company that landed the contract.
“With the topsides fabrication now running in parallel with the tanker conversion, the construction phase is proceeding as planned,” SBM Offshore FPSO Managing Director Bernard van Leggelo said in a statement. “SBM ran a two-day safety-engagement event with the experienced teams at the two yards in Singapore to ensure that all aspects of HSSE [health, safety, security and environment ] and quality remain focused objectives for the Liza FPSO delivery.”
SBM selected the Tina very large crude carrier for the conversion. Designed to produced up to 120,000 bbl/d with an associated gas treatment capacity of about 4.8 MMcm/d (170 MMcf/d) and crude storage capacity of 1.6 MMbbl, the FPSO unit will be spread moored in a water depth of 1,525 m (5,003 ft).
Golar Lands 15-Year Contract For FSRU
A 15-year charter for a floating storage and regasification unit (FSRU) and related services in the Atlantic Basin will give Golar LNG Partners LP the flexibility to use either the Golar Spirit or Golar Freeze.
The project of an energy and logistics company, announced Jan. 19, is expected to start in fourth-quarter 2018 and require the vessel to be in service for up to 15 years without drydock.
Golar expects the charter to generate an annual operating income of $18 million to $22 million. The rate will vary according to demand for regasification throughput but includes a cap and floor.
“Securing this contract demonstrates the underlying value of the partnership’s existing assets, adds significant term and revenue backlog whilst simultaneously reducing recontracting risk,” Golar Partners CEO Graham Robjohns said in a statement. “It also reflects the growing interest in smaller, cost-competitive FSRUs that can facilitate the opening of niche markets previously considered uneconomic for LNG.”
Either side in the contract can terminate after three years if certain targets are not met. The charter also includes an option for a five-year extension.
SBM Offshore Completes Turritella Handover, Transaction
SBM Offshore and Shell E&P Offshore Services have completed the transaction related to the sale of FPSO Turritella following an operational transition period, according to a news release.
The Jan. 16 news followed word in July 2017 that Shell would purchase the unit, which is being used at its Stones development in the U.S. Gulf of Mexico. The purchase allows a Shell affiliate to assume operatorship of the development in its entirety in an effort to improve efficiency via integration of subsea to surface operations.
The unit was sold by a joint-venture company owned by SBM Offshore (55% interest), Mitsubishi Corp. (30%) and Nippon Yusen Kabushiki Kaisha (15%). The transaction was valued at about $1 billion.
SBM has called FPSO Turritella the world’s deepest FPSO development, located at a water depth of 2,896 m (9,500 ft). The unit features a turret with a disconnectable buoy that allows it to weathervane in normal conditions and disconnect from the FPSO unit if a hurricane approaches.
“Both companies have worked successfully together to ensure a safe and controlled handover of operation,” SBM said in the release. “The financial impact of this transaction on the SBM Offshore accounts remains in-line with earlier disclosures.”
Analysts are optimistic about Argentina's offshore oil and gas sector, while concerns surround development of the Vaca Muerta Shale.
Bahrain’s state-owned Tatweer Petroleum said it would sign agreements within a few weeks with Italian oil major Eni and Japan’s JX Nippon to develop the Bahrain Field.
The agreement covers Block A offshore Ras Al Khaimah, one of the seven United Arab Emirates (UAE).