Syntroleum, Bluewater form JV to develop GTL/oil FPSO
Offshore staff
(US) - Syntroleum Corp. and Bluewater Energy Services BV have formed a JV to develop and finance the building of the world's first air-based gas-to-liquids (GTL) plant on an FPSO that could also produce oil and offer storage capabilities.
The purpose of the joint venture is to develop, construct, own, and operate GTL/oil FPSO vessels.
The companies are working together to identify projects that will allow the JV to participate in the upstream development of oil and gas reserves and downstream processing at offshore locations.
A detailed feasibility study conducted by the companies has addressed a design of up to 17,000 b/d of Fischer-Tropsch (FT) products, 40,000 b/d of crude oil, and 10,000 b/d of condensate on an FPSO, which would include around 2.3 MMbbl barrels of storage capacity.
The GTL/ oil FPSO study follows Syntroleum's work with its GTL barge concept for shallow water.
Jack Holmes, president and CEO of Syntroleum, says, "There are numerous offshore gas discoveries in the 1 - 3 tcf range where we can add significant value using this FPSO technology."
By using the GTL/ oil FPSO technology concept, companies can develop offshore gas reserves that otherwise would be uneconomical, and in the process avoid costs of reinjection of natural gas back into the reservoir.
03/07/06