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Malaysia Aims to Become LNG Trading Hub through New $1.3B Terminal
Malaysia is aiming to become Asia’s liquefied natural gas (LNG) trading hub by 2020 with the establishment of a $1.3 billion LNG terminal in the Pengerang Integrated Petroleum Complex (PIPC), the country’s Prime Minister Najib Razak said in a statement Thursday.
The LNG terminal – also known as the Pengerang Independent Deepwater Petroleum Terminal (PIDPT) – will be developed by the Johor state government, Netherland’s Royal Vopak and Malaysia’s Dialog Group.
PIDPT – which will be constructed over two phases – is designed to have a total storage capacity of five million cubic meters. The terminal will be used for storage, loading and regasification of LNG, both for trading and domestic use. The first construction phase of PIDPT has already started, and is scheduled for completion by 1Q 2014.
“This will be the first independent LNG trading terminal in Asia, allowing multiple LNG users to store and trade the product. It will spur the growth of the [petroleum] industry, and help establish Malaysia as Asia’s LNG trading hub,” Razak said.
PIPC will also house Petronas’ new $20 billion refinery and petrochemical integrated project. The project – scheduled to be commissioned by 2016 – will be able to produce 300,000 barrels per day of refined products.
Malaysia’s PIPC has been touted as a potential strong competitor to Singapore’s Jurong Island – an artificial island located to the southwest of the main island of Singapore, off Jurong Industrial Estate. Singapore is, at present, the Asian price discovery center and trading hub for oil products due to its significant oil storage and trading infrastructure in Jurong Island. The island which is home to oil and gas companies – such as ExxonMobil, Shell, BP, BASF, Celanese, Mitsui Chemicals – sees up to 1.3 million barrels of crude processed each day.
Singapore is also aggressively developing its oil and gas storage infrastructure. The island-city, through the development of the Jurong Rock Cavern (JRC) project, will create an additional 1.47 million cubic meters of oil storage space by 2013. JRC is the first underground rock cavern for oil storage in Singapore and Southeast Asia. Construction work on JRC started in February 2007.
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Petronas, PDVSA Searching for Oil Offshore Cuba
Cuba’s state oil company, Cubapetróleo (Cupet) sent a statement to the country’s media saying that a company from Malaysia, a subsidiary of Petronas, had started drilling operations at the Catoche 1X well offshore Cuba.
The Malaysian company is using the Scarabeo 9, a 6th generation semi submersible drilling rig, for the operation. The Catoche 1X well was spudded on May 24. The rig had been under a contract with the Spanish oil major Repsol, who, following the disappointing results of its recent well, decided to scrap plans for further drilling off the Caribean country’s coast.
Cupet has said that Repsol’s failure to find oil doesn’t mean that the oil isn’t there and has added that the area has “a high potential for discovery of new hydrocarbon reserves, according to geological studies performed.”
Cuba estimates that its offshore fields hold approximately 20 billion barrels of oil, which could, once unlocked provide a major boost to the communist country’s economy.
Furthermore, the Cupet’s announcement says that once the drilling of Catoche 1X is completed the Scarabeo 9 will move to the Cabo de San Antonio 1x well, operated by Venezuela’s PDVSA.
Scarabeo 9, capable of operating in water depths of up to 3,600 meters, was built by Singapore’s Keppel specifically for drilling operations in Cuban waters.
Due to the United States trading embargo against Cuba, Repsol had to come up with a rig with almost no U.S. made parts in it, and according to Reuters, the only U.S. manufactured part on the Scarabeo 9 rig is a blowout preventer, a part that malfunctioned and caused the Deepwater Horizon disaster in the U.S. Gulf of Mexico in 2010.
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Recap: Worldwide Field Development News (May 4 – May 10, 2012)
This week the SubseaIQ team added 5 new projects and updated 20 projects. You can see all the updates made over any time period via the Project Update History search. The latest offshore field develoment news and activities are listed below for your convenience. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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- Recap: Worldwide Field Development News (Apr 27 – May 3, 2012) (mb50.wordpress.com)
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McDermott Wins Siakap North – Petai Subsea Contract in Malaysia
McDermott International, Inc. announced that its Malaysian affiliate Berlian McDermott Sdn. Bhd. was recently awarded a significant subsea contract for executing a deepwater engineering, procurement, construction, transportation, installation and commissioning project offshore Malaysia. The value of this contract is included in McDermott’s first quarter 2012 backlog.
The award is for the subsea infrastructure of the Siakap North – Petai (“SNP”) Development Project operated by Murphy Sabah Oil Co., Ltd. (“Murphy”), comprising rigid flowlines, flexible risers, an umbilical and subsea hardware and controls. The SNP field is located nearby the existing Kikeh field, northwest of Labuan Island, Malaysia, in waters 3,900 – 4,900 feet deep.
“Our subsea engineering expertise, fabrication track record at our Batam Island facility, state-of-the-art subsea construction vessels and understanding of the Malaysian market, contributed to this successful award,” said Stephen M. Johnson, Chairman of the Board, President and Chief Executive Officer of McDermott. “We look forward to delivering the facilities for this important field development for Malaysia.”
The SNP field architecture consists of two rigid, insulated, pipe-in-pipe production flowlines, one rigid water injection flowline and one main umbilical system connecting eight new manifolds and subsea distribution units to existing riser slots on the Kikeh FPSO. The development calls for five water injection and eight production wells, drilled from the manifolds at each of the four drill center locations.
Detailed engineering and procurement for the project are underway, and fabrication of PLETs, jumpers and other installation aids is expected to begin in the third quarter of 2012. Following the infrastructure installation, McDermott will undertake a comprehensive System Integration Test of the subsea units and provide commissioning assistance. The project scope is scheduled to be completed by the third quarter of 2013.
Aker Solutions to Build Umbilical Plant in Malaysia
Aker Solutions will build a new state-of-of-the-art umbilical manufacturing plant in Pekan, Malaysia, to meet the anticipated growth and the needs of their Asia Pacific customers. The total investment of USD 60 million will expand Aker Solutions’ manufacturing capacity and strengthen their position as a leading producer of steel tube umbilicals.
The new manufacturing facility close to Kuantan, on the east coast of Malaysia, will complement the existing umbilicals manufacturing plants located in Moss, Norway, and Mobile, Alabama, US.
“I am very excited about the opportunities that will be created by our new manufacturing plant in Malaysia and the added capabilities it ensures. This new plant increases Aker Solutions’ footprint in Asia and our capability to serve customers in the Asia Pacific region,” says Tove Roskaft, head of Aker Solutions’ umbilical business.
She adds: “The umbilical market has robust fundamentals and this strong growth is expected to continue. This investment gives us a strategic advantage in the already booming oil and gas market in the region. As a technology and market leader, we are now ready to take on the opportunity of having umbilical manufacturing hubs in three major oil and gas regions of the world.”
Over the past few years, Aker Solutions has invested heavily in Malaysia, which is the company’s hub for the Asia Pacific region. This includes their first-class manufacturing centre for subsea production technologies and drilling risers in Port Klang, close to Kuala Lumpur. The company also has a 600-strong front-end, design and engineering hub in Kuala Lumpur.
Subsea umbilicals are deployed on the seabed to supply necessary controls and chemicals to subsea oil and gas wells, subsea manifolds and any subsea system requiring a remote control. Over the past 15 years, Aker Solutions has delivered more than 400 umbilicals to some of the world’s most challenging fields, from harsh environment to ultra-deep, high-pressure water conditions.
Aker Solutions has already opened its regional head office for umbilicals in downtown Kuala Lumpur managed by Mr. Crawford Tennant who is an industry veteran and former head of the Aker Solutions facility in Port Klang. The Pekan facility is scheduled to begin operations in the fourth quarter of 2013.
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Gulf of Mexico Records Largest Demand for Specialised Offshore Vessels
Infield Systems have made a report on the offshore construction activity demand in order to recognize key regions and gauge supply developments stressing the possibility for activity increase due to the arrival of transcontinental pipelines and the deepwater tie-in of various satellite wells matched to an increased level of subsea installations. Demand is expected to reach its peak during 2015.
North America, particularly the Gulf of Mexico (GoM), has been recording the largest demand level mainly because of the availability of assets.
A considerable growth is expected in Asia and West Africa to 2016, supported by West African projects perceived as one of the key constituents of the emergent deepwater market and the region is seen as a key to a continued utilization of strategic assets. The Asian market features numerous countries including Malaysia, India, China and Indonesia, each reflecting differing dynamics, providing a slightly different opportunity for vessel operators who are keen to secure high utilization.
The global recession has affected all offshore developments and oil companies forcing them to restructure their capital cost commitments together with their offshore expansion plans.
Considerable confidence in Global financial markets has been regained. The declining oil price trend seen in Q2 2011 stabilized during Q3 2011. Greatly depending on whether the major economies return to recession, the global oil demand is anticipated to grow, although at a slower rate than expected.
Infield Systems strongly believe that the level of activity for specialist vessels will increase as E&P ventures expect to rise as a result of exploited reserves.
Vessel operators dealing with harsh and remote environments are most likely to be at the forefront of the expected growth. However, Infield Systems expects the global fleet to become more technologically advanced.
Infield Systems’ Global Perspective Specialist Vessels Market Report To 2016 is dedicated to the construction and construction support vessels that are employed in the development of offshore oil and gas fields. The third edition of this ground breaking report provides an in depth analysis of global and regional trends and the supply and demand dynamics for the period 2007 through to 2016.
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Murphy Oil Malaysia Completes Rigless Intervention Campaign Using Welltec Services
Murphy Oil Malaysia recently completed a highly successful, rigless intervention campaign using Welltec services. Not only did the operation allow immediate production from a “lost” well, but it also saved the time and cost of a rig based sidetrack. The end result is expected to add 20 MMscf/d into the production portfolio.
In the first well, the drift run hung up at 945 ft MD when trying to perforate the well. Based on previous experience, the cause was suspected to be part of a cement wiper plug. This was pushed down to a nipple profile at 4,314 ft MD, leaving it still 1,690 ft above the perforation depth. After only minutes of milling, the Well Miller made it through the plug, which allowed the Well Tractor® to push it down to 6,398 ft MD, approximately 380 ft below the target perforation interval. Thereafter the well was perforated and put on production.
In the second well, a poor cement job had made the primary target zone inaccessible and left an obstruction inside the tubing. With pressing rig commitments there was insufficient time to fix the problem, leaving the well temporarily abandoned and a candidate for future sidetracking. Based on the success of the first well, the Well Tractor and Well Miller were used to push the obstruction from 400 ft to 2,132 ft MD , meeting the objective to prepare the well for sidetracking.
However, it was decided to attempt to push the obstruction as far as possible. Using the Well Tractor and Well Miller the well was cleared well beyond the sidetrack target depth to an eventual Hold Up Depth of 8,743 ft MD. Getting this far down the production string allowed access to two of the three reservoirs in this well, which could now be completed for production rather than scheduled for a sidetrack workover.
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Songa Eclipse Getting Ready for Contract with Total in Angola
Songa Offshore, Cyprus-based offshore drilling company, today provided a fleet update for October 2011.
Songa Venus remained on location for Petronas Carigali, Malaysia through-out the period. The rig was shut down during the majority of the period and completed earlier announced repairs and testing of re-worked BOP components on December 19. The unit achieved 100% operating efficiency for the remainder of the period after re-commencing operations.
Songa Mercur completed its de-mobilization and load off from Sakhalin, Russia to Labuan Malaysia end of October and the rig has undergone extensive contractual acceptance testing and installation of third party equipment through November and December. The rig is now fully accepted and scheduled to depart for commencement of its two well program in Malaysia with Petronas Carigali.
Songa Dee continued its program for Statoil at the Gulfaks field, and the rig achieved an average operating efficiency of 99% during the period.
Songa Delta completed its scheduled SPS and rig upgrade yard stay at CCB base outside Bergen, Norway during the period. The yard stay was extended from an original 40 days to 56 days mainly due to extended work scopes and additional work related to the BOP system. The rig was then further delayed by weather and remained in sheltered waters until 6th January and is currently in process of anchoring up at location in order to re-commence the contract with Wintershall / Det Norske Oljeselskap.
Songa Trym achieved an operating efficiency of 99% during the period. The rig continues to operate for Statoil in Norway.
Songa Eclipse completed its mobilization to Angola during the period, and the rig is currently undergoing final rig contractual acceptance testing which is expected to be completed during second half of January. The rig will thereafter commence its one well plus 18 month contract with Total E&P Angola
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