December 2015 Vol. 242, No. 12

World News

World News: Cross-border Project Expected to Produce 40,000 Bopd

Chevron Corporation’s subsidiary, Chevron Overseas (Congo) Limited, has begun oil and gas production from the Lianzi Field, located in a unitized offshore zone between the Republic of Congo and the Republic of Angola. Located 65 miles offshore in 3,000 feet of water, Lianzi is Chevron’s first operated asset in the Congo and the first cross-border oil development project offshore Central Africa. The project is expected to produce an average of 40,000 bopd.

“As the first offshore energy development spanning national boundaries in the Central Africa region, Lianzi represents a unique cooperative approach to share offshore resources and may serve as a model for the development of similar cross-border fields between two countries,” said Ali Moshiri, president of Chevron Africa and Latin America Exploration and Production Co.

The field, discovered in 2004, includes a subsea production system and a 27-mile electrically heated flowline system, the first of its kind at this water depth. The system transports oil from the field to the Benguela Belize–Lobito Tomboco platform in Angola’s Block 14.

Ethiopia, Djibouti Agree on Blackstone-Backed Fuel Pipeline

Ethiopia and Djibouti have agreed on a $1.55 billion fuel pipeline with developers Mining, Oil & Gas Services and Blackstone Group LP-backed Black Rhino Group. The two countries in the Horn of Africa signed framework agreements for construction of the 550-km pipeline to transport diesel, gasoline and jet fuel from port access in Djibouti to central Ethiopia. Financial close is expected in 2016, with construction scheduled for completion two years later.

The pipeline will increase energy security, aid economic development and reduce harmful emissions. The 50-50 joint venture with MOGS, a unit of Johannesburg-based Royal Bafokeng Holdings, will seek to raise at least $1 billion of senior debt financing.

The project, known as the Horn of Africa Pipeline, includes an import terminal and 950,000 bbls of storage capacity in Damerjog, Djibouti, linked to a storage terminal in Awash, Ethiopia. The 20-inch pipeline will transport 240,000 bpd of fuel.

Cyberhawk Completes Internal Tank Inspection for Maersk Oil

Cyberhawk Innovations completed its first ROAV (known as a UAV or drone) inspection of a cargo oil tank on an operating Floating Production Storage and Offloading (FPSO). The inspection took place on board the Gryphon FPSO, owned and operated by Maersk Oil in the UK North Sea. As with other FPSO operators, Maersk has requirements to visually inspect cargo tanks for integrity, damage assessment and class certification.

This type of inspection is usually conducted by rope access technicians (RAT), who are suspended on ropes to inspect the tank structure, focusing on areas of high stress such as stiffeners, brackets, bracing, webs and stringers. One of Maersk’s priorities was to reduce the human risk factors of rope access, which includes working at height for sustained periods as well as working in confined spaces.

Cyberhawk mobilized a two-man ROAV team, consisting of a pilot and inspection engineer to the site. The inspection of the critical components of the tank was completed within a day, in comparison with rope access which would usually take several days.

Sembcorp Marine Wins $1 Billion Contact in UK North Sea

Singapore’s Sembcorp Marine has a $1 billion contract from Maersk Oil to build offshore facilities for the Culzean field in the U.K. North Sea. SMOE Pte Ltd, a Sembcorp Marine subsidiary, will build the central processing facility, two connecting bridges, wellhead platform and utilities and living quarters topsides for the development.

KBR, Inc. was awarded a contract for detailed design engineering and follow-on services by SMOE Pte Ltd for the topsides facilities. Once completed, the facility will be installed at a water depth of 90 meters some 145 miles east of Aberdeen in the Central North Sea.

Subsea 7 won the subsea, umbilical, riser and flowline (SURF) contract valued in excess of $150 million. The contract scope includes project management, engineering, procurement, construction and installation of a 22-inch, 52-km gas export pipeline connected to the Central Area Transmission System (CATS), and a 3.6-km pipe-in-pipe (10-inch outer pipe and 6-inch inner pipe) providing insulation for the transportation of the condensate to the in-field Floating, Storage and Offloading facility (FSO).

The pipe-in-pipe will be laid with a 4-inch piggy-back line that will transport fuel gas to the FSO. Subsea 7 will also provide subsea structures, tie-ins to the Culzean platform facilities and pre-commissioning expertise.

A number of Subsea 7 vessels, including the pipelay and heavy-lift vessel, Seven Borealis, will be utilized on the project. Offshore operations are scheduled to kick off in 2017. The Culzean gas field is expected to be capable of providing 5% of the UK’s total gas consumption by 2020-21.

Russia to Build Pakistani Gas Pipeline

Russia has agreed to build and possibly run a planned natural gas link in Pakistan, according to Bloomberg. The report states that the countries signed an intergovernmental agreement for a pipeline that would connect LNG terminals in southern Pakistan and its energy-hungry north, with construction completed by late 2017. A unit of Russia’s Rostec State Corp. will manage the project and invite foreign investors to participate.

Russia is reportedly studying funding from Russian and Chinese development banks for the link. A project company, set up by potential investors, will own and run the 684-mile pipeline over 25 years. The link would ship as much as 12.4 bcma of gas, which is about 30% of Pakistan’s consumption. The line is expected to reach capacity by early 2020.

4 Countries, EU Finalize Deal for Poland to Lithuania Pipeline

Poland, Lithuania, Latvia and Estonia and the European Commission (EU), have an agreement that will allow construction of the Gas Interconnector Poland-Lithuania (GIPL) pipeline by December 2019. The objective is to end the long-lasting gas isolation of the Baltic Sea region.

The project will integrate the gas systems of the Baltic Sea region into the internal EU gas markets in line with the EU’s energy security strategy to ensure that no region in Europe is isolated. It is a goal of close regional cooperation by the European Commission in the framework of the Baltic Energy Market Interconnection Plan initiative (BEMIP).

The total construction cost is estimated at 558 million euros. The 700-mm pipeline will have a total length of 534 km, including 357 km in Poland and 177 km in Lithuania. Starting capacity: from Poland to Lithuania is expected to be 2.4 Bcma and from Lithuania to Poland 1 Bcma.

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