The main contract, awarded by China Offshore Oil Nanhai West Corporation, a subsidiary of China National Offshore Oil Company, is for a new-build FPSO operating at Devon Energy China Limited's Panyu Field in the South China Sea. Kvaerner's scope includes engineering design, detailed engineering support, project management support and supply of critical process equipment.
The project will be executed jointly by Kvaerner Process Systems' operations in Malaysia, Kvaerner E&C's operations in Singapore and Kvaerner's local partner, China Offshore Oil Engineering Co Ltd. COOEC, appointed as detail engineering contractor by the customer, will send its engineers to Singapore to participate in the basic engineering phase and to help ensure a smooth transition into the detail engineering phase. The Panyu FPSO will feature production facilities capable of processing 70,000 bbls of oil and 220,000 bbls of total liquid, and will offer 600,000 bbls of heated storage capacity. Other facilities include a power plant to drive submersible pumps and other requirements, crude transfer and offloading systems, and utility and safety systems. The FPSO will take production from the Panyu 4-2 and Panyu 5-1 wellhead platforms and will be located approximately midway between the two platforms, a distance of 9.2 km. The FPSO will provide power to the two platforms via a subsea electrical cable. Jarl Kosberg, president of Kvaerner Process Systems, Asia Pacific, said: "This award is clear recognition of Kvaerner's FPSO expertise in the expanding South East Asia market. Our previous track record on the Lufeng FPSO for Statoil and our ability to offer a combined pool of skills and resources from two key parts of our organisation - with the added strengths of our local partner - further demonstrates our comprehensive and integrated capability."
Kvaerner was also recently awarded a contract by Devon Energy for the detailed design of the Panyu 4-2 and Panyu 5-1 wellhead platforms, and interconnecting pipeline system. The two platforms will comprise eight-legged steel jackets supported by eight skirt piles. Each platform will support a permanent drilling rig, 90-man living quarters, 16 wellheads and minimal production facilities. This work is being carried out primarily in Kvaerner's Singapore office.
The two projects are running concurrently. First oil is scheduled for end-2003.
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