China deal awared to Kvaerner
Norway's Kvaerner said that its Asia Pacific operations were awarded $12 million in contracts for the Panyu field development in the South China Sea. The main contract awarded by China Offshore Oil Nanhai West Corp, a subsidiary of China National Offshore Oil Company is for a newbuild floating, production, storage and offloading (FPSO) unit, operating at Devon Energy's Panyu field.
The scope of the contract calls for Kvaerner to provide engineering design, detailed engineering support, project management support and supply of critical process equipment. The project is to be jointly undertaken by Kvaerner Process systems' operations in Malaysia, Kvaerner E&C's operations in Singapore and Kvaerner's local partner China Offshore Oil Engineering (COOEC).
The Panyu FPSO will feature production facilities with process capacity of 70,000 barrels of oil and 220,000 bbls of total liquid, and will offer 600,000 of heated storage capacity. The FPSO will take production from the Panyu 4-2 and Panyu 5-1 wellhead platforms and will be located approximately mid-way between the two platforms, a distance of 9.2 kilometers. The unit will supply power to the two platforms via a subsea electrical cable.
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 units will comprise eight-legged steel jackets supported by eight skirt piles and will each support a permanent drilling rig, 90-man living quarters, 16 wellheads and minimal production facilities.
The two projects are running concurrently and first oil from the field is slated for the end of 2003.