Floating, subsea production increase as fixed installations decline

Nov. 1, 2006
Operators worldwide currently are installing, or planning to install, greater numbers of floating platforms and subsea projects than in previous years.

Cinnamon Odell, ODS-Petrodata

Operators worldwide currently are installing, or planning to install, greater numbers of floating platforms and subsea projects than in previous years. On the other hand, the number of fixed platform installations is declining.

With improvements in technology and oil prices remaining over $60/bbl this year, operators feel confident that their moves into deeper waters can be profitable.

Results from the 2006 global field development survey indicate that operators have the following projects either recently installed, under construction, or in the planning phase:

  • 295 fixed platforms
  • 29 floating production systems
  • 463 subsea trees associated with 96 projects.

Fixed platforms

Over the last five years, the number of fixed platforms installed worldwide ranged between 155 and 175 per year, with last year reaching a high of 175 installations. So far in 2006, operators have only installed 98 fixed platforms worldwide. The greatest number are planned for US waters, mostly in the Gulf of Mexico.

In a typical project, Devon Energy Corp. plans to install a 3-pile platform on Eugene Island block 315 in 240 ft of water, pending results from three wells drilled in the vicinity. In another, El Paso Corp. is constructing a fixed platform designed by Chet Morrison Contractors Inc. on West Cameron block 95 in 38 ft of water. Deck installation is scheduled for late November.

Mexico’s Pemex has several fixed platforms planned for the GoM, with a majority of the company’s focus on the Ku-Maloob-Zaap field in the Bay of Campeche. Pemex plans to construct various types of fixed platforms, including compression, accommodation, production, and drilling. Dragados Offshore SA constructed an 8-pile compression platform for the Ku-Maloob-Zaap field, and the PB-KU-A2 jacket was installed recently. Italy’s Saipem SpA, a subsidiary of Eni, will install the deck in November.

McDermott International Inc. has received a number of contracts from operators for the construction of jackets and decks. In particular, the company received a Saudi Aramco contract to supply 16 production deck modules that correspond with the 16 jackets the company already had been contracted to supply. The first two decks are scheduled for installation in mid-2007.

Floating production

As Brazil’s Petrobras continues to maintain oil self-sufficiency, the company is increasing its exploration in deepwater areas worldwide, leading to a greater need for floating platforms. In all, Petrobras plans to install eight floating production sysems off Brazil. The company contracted Sevan Marine ASA for an 11-year lease for a newbuild monohull FPSO capable of processing 30,000 b/d of oil for the Piranema field in 5,249 ft of water.

Petrobras also is active in the US GoM, where the company is planning to deploy the first FPSO in the region. Petrobras has engaged a consulting firm to assist in hiring 80 engineers and support positions for its Walker Ridge area projects. The operator, with partner Devon, increased their ownership in two deepwater GoM fields (Cascade & Chinook) in August, where they intend to install an FPSO. Technip is conducting the front-end engineering and design for the project. Petrobras is using a fast-track approach for the development of the fields, with first oil expected in 2009.

Also in the GoM, Atlantia Offshore Ltd. recently completed the integration of the hull and topsides for the >Independence Hub facility. After additional hookup and commissioning activities, the hub will be towed to its permanent mooring place on Mississippi Canyon block 920, where it will be moored in a world-record depth of 8,000 ft. The Independence Hub is owned by Enterprise Products Partners LP and Helix Energy Solutions Group Inc. and will be operated by Anadarko Petroleum Corp. on behalf of the Atwater Valley Producers Group.

Southeast Asia is becoming a lucrative market for FPSOs and FSOs. Bidding is under way for an FSO unit that China’s Cnooc Ltd. plans to use on the Widuri field off Indonesia. Cnooc will replace the existing FSO and has received bids from 12 contractors. Vietnam’s Cuu Long JOC plans to lease an FPSO for operations on block 15-1 off Vietnam for an initial period of between five and seven years. Murphy Oil Corp. will use an FPSO off Malaysia for its block K on the Kikeh field in 4,400 ft of water. First oil is expected during the second half of next year, and the initial contract for the FPSO is for a confirmed period through July 2015.

Subsea installations

Worldwide, the number of subsea projects completed has been relatively flat for several years, but the number of projects currently in the planning phase could be the signal that the trend is about to reverse. Northwest Europe remains the region with the most subsea projects in the planning or construction phase with 75, but in terms of the number of subsea installations scheduled during the next several years, West Africa comes in first with 175 subsea trees planned in 2006 and 161 earmarked for next year.

BP’s Greater Plutonio Complex on block 18 in 4,593 ft of water off Angola is under construction. FMC Technologies is providing 45 subsea trees that will be tied back to theGreater Plutonio FPSO. The project encompasses 10 manifolds and 45 production wells. The manifolds will have slots for an additional 25 wells. Fifteen wells are expected to be completed by start-up in 2007.

In the Barents Sea, Statoil is performing the subsea installation for its Albatross field on block 7120/9 and Snohvit field on block 7121/4, which are being tied back to an onshore LNG terminal at Melkoya, Norway, near Hammerfest. The installation is taking place in 1,050 ft of water. Ten subsea trees are planned for the project, with nine production wells and one carbon dioxide injector. Snohvit is the first development in which all field functions will be remotely operated from shore.

In summary, global energy demand growth and the resulting high oil prices are fueling a boom in many sectors of the offshore industry, and players in the offshore construction market should reap the benefits of the upsurge.