STOS Seeks Turnkey for $520m Pohokura Gasfield

Shell Todd Oil Services Ltd (STOS) has started the ball rolling for turnkey contracts in the development of New Zealand’s currently largest undeveloped petroleum resource, the Pohokura gas-condensate field off northern Taranaki. The New Plymouth-based operating group, which is running the $NZ900 million ($US520 million) project on behalf of joint venturers Shell Exploration NZ Ltd, Todd Petroleum Mining Co. Ltd and OMV New Zealand Ltd, has sought expressions of interest from a number of countries for two separate packages for pipelines and platforms.

STOS has sent enquiries to all the recognised engineering, procurement, construction and installation players in Australia and New Zealand, and also to Petroleum Technical Services Company of Vietnam, the rapidly-growing turnkey contractor subsidiary of PetroVietnam.

STOS is seeking the most cost effective bid for construction work, and is hoping that construction in New Zealand will be competitive. Some aspects of the work may well stretch the local capabilities, such as pipelines.

Taranaki-based Transfield Worley, who have been involved in the front-end engineering and design work for Pohokura, has oil and gas construction experience. Two unmanned wellhead platforms will be required to extract gas and condensate from the Pohokura field, which lies from 2 to 14 km off the coast.

Up to a 20-inch production pipeline and a 10-inch gas cycling pipeline, will be laid on or under the seabed linking the platforms to an onshore production station in the area. Piggy back lines supplying services to the platforms will also be needed.

Tender packages for the onshore facilities, which will also include a processing plant and pipelines, will be offered by STOS in the near future.

The operating company is likely to issue invitations to tender for the offshore packages after examining the potential bidders’ expressions of interest.