Fluor Helps Fire Up Phase 2 Production Offshore China

Fluor has assisted in the successful startup of production Platform B, one part of Peng Lai (PL) 19-3 blocks' Phase 2 project located in China's Bohai Bay. Bohai Bay's PL 19-3 oil field Platforms D and E are expected to come online in 2009. The operation of these platforms is expected to boost the oil development of the field located off of China's northeast coast.

Fluor has provided engineering services throughout the project, which includes conceptual engineering, front-end engineering and design (FEED) and detailed engineering. Fluor has also provided procurement services for three wellhead platforms and construction support in fabrication yards in Shanghai, Tanggu and Singapore. Engineering and procurement were performed from Fluor's global execution centers in Houston, Shanghai and Manila, the Philippines.

"We are extremely pleased to provide our clients with engineering to accomplish the on-time production of the Peng Lai oil field at Bohai Bay," said David Seaton, president, Fluor's Energy & Chemicals business group. "Many complex challenges have been overcome in this remote location as we continue to assist with this milestone offshore project."

The project was executed in two phases. The second phase, carried out simultaneously with the first, includes a 190,000 barrels-of-oil-per-day development of the world's largest floating production, storage and offloading (FPSO) vessel and five additional fixed production platforms tied to a central fixed riser and utility platform.

Thirty-six miles of subsea pipeline was installed to interconnect these facilities. Fluor designed the flow lines so that early production could be routed to the existing FPSO vessel. After the new FPSO is delivered at site, the flow lines will be reconnected for permanent installation.

The oil field development project is located 235 km southeast of Tanggu, China, and began in 1999 with conceptual and feasibility engineering. The first phase of the project involved the basic design package for an early production facility which consisted of a new fixed production platform tied to a newly modified and refurbished FPSO.

CNOOC holds a 51 percent interest in the PL 19-3 block with ConocoPhillips holding the remaining 49 percent. ConocoPhillips is the operator of PL 19-3, which is currently China's largest offshore oil field.

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