GULF OF MEXICO Bruce Beaubouef • Houston
Wood to deliver FEED
for LNG production platform
The Honghua Group Ltd. has awarded
a $12-million front-end engineering design
(FEED) contract to Wood for its liquefied
natural gas (LNG) platform development in
the West Delta area of the Gulf of Mexico.
The main objective of the FEED is to finalize the design of the world’s first offshore
platform-based natural gas liquefaction and
storage facility. Wood recently completed the
pre-FEED for this project.
Wood’s scope of work includes the onshore
gas pre-treatment plant configuration and lay-
outs, general utilities, feed gas processing and
compression, and transportation and delivery
via repurposed pipelines from the existing
onshore Toca and Venice, Louisiana, facilities
to the LNG facility 10 mi ( 16 km) offshore.
Once complete, around 2020, gas from the
Texas Permian basin will be transported to
the offshore platform where it will be liquefied, stored, and ultimately exported globally.
Wood will compile and develop the nec-
essary technical documentation for a Deep
Water Port permit application to United States
Maritime Administration. This includes designing onshore, pipelines and offshore elements of the facility in sufficient detail.
The company also will update and complete
the preliminary design of the full offshore
gas liquefaction facility. The facility will be
designed to produce up to 4. 2 MM metric
tons/year of LNG and to store 300,000 cu
m of LNG.
The FEED is being conducted in collaboration with En TX Gas Tek Global Ltd., Baker
Hughes, a GE company, and Braemar Technical Services, the Owner’s Engineer on the
LNG 21 project. Braemar is also leading the
design and development of the FSP LNG storage system.
Mexico seeks partners
for PEMEX projects
The Mexican government is expected
to offer the rights to partner with state oil
company PEMEX on three major projects on
Wednesday, one in the shallow-water Gulf of
Mexico and two more onshore.
The three joint ventures, or farm-outs, aim
to help PEMEX develop areas with private
capital and expertise. In each case, PEMEX
would retain a 50% stake in the project but
will cede operational control.
The auction run by Mexico’s National Hydrocarbons Commission will be only the sec-
ond time that partnership rights for a PEMEX
project have been made available.
The first joint venture auctioned last December was won by BHP Billiton, which took a
60% operating interest in PEMEX’s deepwater
Trion project, a development seen requiring
some $11 billion over the life of the contract.
Ten bidders have pre-qualified for the auc-
tion, according to the report. Six are aiming to
operate as PEMEX’s sole partner, including
China National Offshore Oil Corp., Colombia’s
Ecopetrol and Germany’s DEA Deutsche Er-
doel. Four others have pre-qualified in consortia, including a venture between Murphy Oil
and Mexican independent Sierra Oil & Gas.
The projects on offer include a produc-tion-sharing contract for the shallow water
Ayin-Batsil area, and license contracts for the
onshore blocks, Ogarrio and Cardenas-Mora.
Ayin-Batsil is a 423-sq mi ( 1,096-sq km) most-
ly heavy-oil field along the southern edge of the
Gulf of Mexico, believed to contain 359 MMboe
in proven, probable and possible reserves.
The Ayin-Batsil farm-out will be awarded
based on which bidder offers the government
the largest share of operating profits, with a
minimum set at 18.2% and a maximum of 25%.
W&T Offshore spuds ST 224-1
Otto Energy reports that the drilling of the
ST 224-1 well has commenced within the South
Timbalier 224 (ST 224) lease on the shelf. Drill-
ing is targeting a large, amplitude supported,
high CGR (condensate gas ratio) gas condensate
exploration prospect located in the prolific Bul.
1 trend. Otto holds a 25% working interest in
ST 224 which is operated by W&T Offshore.
The prospect, which sits in approximately 70
ft of water, is being drilled using the Enterprise
264 jackup drilling rig. The well has a relatively
shallow target depth of 10,800 ft (TVD) and is
expected to take around 55 days to drill and
Operators return to work after Hurricane Nate
It’s been a busy hurricane season for offshore operators and contractors in the
Gulf of Mexico. After Harvey and Irma, hurricane Nate rumbled through the Gulf in
mid-October, giving the industry its third hurricane-related challenge of the year.
As Nate strengthened into a hurricane and approached the central GoM on Oct.
14, operators had already shut in 92% of the region’s crude production, and evacuated more than 300 manned platforms. Companies had also taken 77% of the Gulf’s
natural gas production offline, about 2. 5 MMc/fd.
But just two days later, it appeared that much of the region’s offshore infrastructure had emerged from the storm unscathed, and that production at offshore
platforms could soon resume. The National Hurricane Center downgraded Nate to a
post-tropical cyclone as it moved out of the area.
By Oct. 16, workers had returned to all but a handful of manned production platforms after evacuations that took place before the storm. At that time, roughly 24% of
the oil production in the Gulf – some 425,000 b/d of oil – remained offline, the Bureau
of Safety and Environmental Enforcement said. Only 20 of the Gulf’s 737 manned
platforms remained evacuated.
Reports indicate that Hurricane Nate had minimal impact on offshore oil and gas operations.