- Upstream reported that
Shell has scaled down the early engineering design of its pilot
vessel-based chemical enhanced oil recovery (CEOR) project at its mature St
Joseph oilfield off Sabah, Malaysia to 2,000 barrels per day (bpd) of water
from 10,000 bpd and an alkaline-surfactant-polymer cocktail due to concerns
over the earlier budget of US$200mil-US$250mil for the vessel.
- The new concept also centres on a potentially leased
vessel with an integrated module of between 250 and 360 tonnes. The module will
be a standalone unit that can be installed on board with minimal tie-in to
avoid re-classification of the vessel. Technip is understood to be carrying out
the studies under a standing 5-year design contract in Miri with Shell.
Houstonbased Water Standard had been brought in to support the conceptual
development, now expected to be completed later this quarter ahead of entering
into front-end engineering and design before the end of 2012.
- BW Offshore, M3nergy, Bumi Armada, SapuraCrest, Delcom and
Tanjung Offshore were interested in the earlier tender for the St Joseph CEOR
vessel. But the award of the engineering procurement contract (EPC) has now
been extended to the second quarter of 2013 from late this year. The duration
of the pilot phase at St Joseph currently remains unclear, but Shell had
earlier expected to reach a decision at the end of the first year of operations
on whether to enter into the first phase of expansion. If the project is deemed
economically viable, Shell is also expected to tender for a larger vessel to
support the full field injection of 130,000 bpd.
- The sailaway of the vessel from the selected fabrication
yard is targeted for early 2014, suggesting a slight delay from the previous
schedule to start up operations in late 2013. The St Joseph CEOR is the first
amongst the US$12bil (RM36bil) enhanced oil recovery (EOR) production sharing
contracts (PSC) between Petronas and Shell. The EOR PSC also covers CEORs at
the South Furious, SF-30 and Barton fields, also off Sabah, as well as a
water-alternate-gas EOR for the Baram Delta Operations off Sarawak.
- However, Upstream indicated that the field operator may
look at tapping the CEOR vessel currently under development for Petronas
Carigali’s Angsi field off Peninsular Malaysia. Petronas Carigali is understood
to have formed a joint venture with MISC to own and operate the Angsi CEOR
vessel. The joint venture had
commissioned Malaysia’s MMC Oil & Gas Engineering and Water Standard of the
US to carry out the front-end engineering and design studies, now expected to
be completed as early as the end of this month. MMC Oil & Gas and Water
Standard are well-placed for the EPC, which is likely to be awarded in early
2013. The Angsi CEOR vessel, which will be equipped with 15 days of storage to
support a water injection capacity of 150,000 barrels per day, is expected to
start operation in the first half of 2014.
- For upstream development, the capex upward trend is still
intact, but the momentum of new contract rollouts has temporarily shifted from
pure fabrication to offshore installation works in the sector’s value chain. We
note that large central processing platform awards for the North Malay Basin
Phase 2, as well as the Bokor, Dulang and Semarang fields could slip into early
next year from earlier expectations of this year. We maintain our Neutral
stance on the sector with our top BUYs being Dialog Group and Petronas
Gas.
Source: AmeSecurities
No comments:
Post a Comment