Liza FPSO conversion
under way in Singapore
In mid-November, the Bahamas-flagged VLCC Tina arrived at
Keppel Shipyard in Singapore, where it will undergo conversion
for ExxonMobil’s Liza Phase 1 development in the Stabroek block
This followed main contractor SBM Offshore’s completion of the
front-end engineering and design (FEED) and a final investment
decision by ExxonMobil and its partners to go ahead with the project
The conversion will include upgrade work on the hull and integration
of the topsides. When completed, the FPSO will be able to produce
up to 120,000 b/d of oil, with associated gas treatment capacity of
around 170 MMcf/d and water injection capacity of roughly 200,000
b/d. The FPSO will be spread moored in a water depth of 1,525 m
( 5,000 ft) and will be able to store 1. 6 MMbbl of crude oil.
Aside from the conversion, SBM Offshore is responsible for install-
ing, leasing, and operating the vessel.
FPSO Egina starts voyage to Nigeria
In November, the FPSO Egina departed the Samsung Heavy Industries (SHI) shipyard in Geoje, South Korea, in transit to Nigeria
for topsides module integration and commissioning. The voyage is
estimated to take three months.
In 2013, SHI won the $3-billion con-
tract for the turn-key project in which
Samsung covered engineering, pro-
curement, construction, transport,
and commissioning. The FPSO is 330
m ( 1,083 ft) in length, 61 m (200 ft)
across, and 34 m (112 ft) high, with a
storage capacity of 2. 3 MMbbl of oil
and topsides weighing 60,000 tons.
The vessel is to be installed at the Total-operated Egina oil field in 1,750 m ( 5,741 ft) of
water, 130 km (81 mi) offshore.
The Egina FPSO project is under the Nigerian local content regulations, and a portion of
the topsides fabrication and integration is to be
completed in Nigeria. Scheduled delivery is
expected in the second half of 2018. SHI formed
a joint venture (SHI-MCI) with a Nigerian local
company and established a production facil-
ity in Lagos, Nigeria, to meet the local content
requirements. The 120,000-sq m ( 1. 3 million-sq
ft) yard has construction and painting facilities
as well as a 500-m ( 1,640-ft) long quay. SHI-MCI
has constructed topsides modules for Egina
since June 2015.
to floating production market
Demand for floating production systems
is growing, according to Westwood Energy’s
updated World Floating Production Systems
Tracker. Capex for both installations and orders
has increased by 12% and 22% respectively,
compared to findings of the 1Q 2017 edition.
Westwood now estimates an order backlog of $45 billion and installation expenditure of $57 billion between 2017 and 2021. This is due to
increased confidence in the market and lower field development costs.
To date this year 10 floaters have entered service, including high-
capex units ordered prior to the downturn such as the P- 66 and
Armada Olombendo. Eleven floating production systems have been
ordered this year, headed by the Liza and Sépia FPSOs and the Mad
Dog Phase 2 semisubmersible.
Latin America will remain dominant in the sector, Westwood believes, accounting for 32% of capex and 36% of installations. Much of
this will be directed at Petrobras’ fields in water depths of up to 1,000 m
( 3,280 ft), for units ordered in 2010 and which are still to be installed.
However, installation expenditure will be more than $5 billion across
Africa, Asia, North America, and Western Europe.
Sembcorp Marine in line
for Johan Castberg FPSO hull
Statoil has awarded Sembcorp Marine Rigs and Floaters in Singapore
a letter of intent (LoI) for the Johan Castberg project in the Barents
Sea. This concerns engineering, procurement, and construction of
the hull and integrated living quarters for the FPSO. Statoil expects
to ratify the contract on taking a final investment decision, before
Christmas. The estimated value is $490 million.
Construction of the hull is the
most time-critical delivery for the
completion of the project in time for
start-up in 2022, Statoil said. There
will be a separate cancellation clause
in the contract linked to securing approval for the plan for development
Johan Castberg, 240 km (149 mi)
northwest of Hammerfest, will be
developed via a large subsea system
connected to the FPSO vessel, with 30
wells to be drilled during 2019-24. Re-
coverable resources are thought to
be 450-650 MMboe. Statoil operates
in partnership with Eni and Petoro. •
The FPSO Egina’s voyage from South
Korea to Nigeria is estimated to take
three months. (Image courtesy Samsung Heavy Industries)
The VLCC Tina will be converted at Keppel Shipyard into an FPSO for ExxonMobil’s Liza Phase 1
development in the Stabroek block offshore Guyana. (Image courtesy SBM Offshore)