PERTH, Australia — Woodside Energy has increased its cost estimate for the Phase 1 Sangomar oilfield development offshore Sangomar after certain issues came to light during construction of the FPSO.
The company is now targeting first oil for mid-2024 and projects a cost range of $4.9 billion to $5.2 billion, up by 7-13% from the previous estimate of $4.6 billion.
FPSO supplier MODEC commissioned Cosco Shipping Heavy Industries (Dalian) Co. to convert the vessel from a former VLCC in China. It was transferred late last year to Keppel Offshore & Marine’s Tuas yard in Singapore for completion of topsides integration and pre-commissioning activities.
Woodside CEO Meg O’Neill said the remedial work was unexpected.
“We have taken the prudent decision to have the remedial work conducted while the FPSO remains at the shipyard in Singapore," O'Neill said. "This minimizes the impact to the project schedule as it is safer, more efficient and more cost-effective than undertaking the work offshore Senegal. This approach ensures we can achieve production startup in line with the adjusted schedule and ramp up operations as planned.”
At the end of last month Phase 1 was 88% complete overall, with the subsea installation campaign at the 76% completion point and the subsea work scope as a whole 95% complete.
Twelve of the 23 wells have been drilled and completed with the Ocean BlackHawk drillship finishing its work scope earlier this month. Ocean BlackRhino will perform the remaining drilling activity.