CNOOC in the hunt for Lingshui FEED suitors

At least five engineering houses responded to query for deep-water gas project work

China National Offshore Oil Corporation (CNOOC) has approached the market to seek international contractors to provide front-end engineering and design services for its Lingshui 17-2 deep-water gas project in the South China Sea.

Located in the Qiongdongnan basin, Lingshui 17-2 represents the operator’s first self-financed development.

At least five heavyweight engineering houses — TechnipFMC, Saipem, SBM, Intecsea of WorleyParsons and a consortium of Wood Group Mustang and Chinese home-grown engineering entity Richtech — responded this week to expressions of interest released by CNOOC Research Institute (CNOOC RI), the operator’s in-house engineering centre.

The successful contractor would carry out FEED studies on the field’s subsea production system and subsea, umbilical, riser and flowline system and review earlier FEED work undertaken by the CNOOC RI, which issued the expressions of interests a week ago.

Sources said the exisiting FEED studies on Lingshui’s subsea systems are incomplete, and part of the workscope for international engineering contractor is to finish this work.

Lingshui, located in 1225 to 1551 metres of water about 160 kilometres from the producing Yacheng 13-1 field, will be developed as an 11-well subsea tieback to a deepwater semi-submersible floater.

The wells will be completed with conventional horizontal subsea trees, with each tree equipped with multiphase flow meters and a sand monitoring system.

The subsea production system will exploit four gas structures — Lingshui 17-2-2, 17-2-3, 17-2-4 and 22-1-1 — which together form the Lingshui 17-2 gas complex.

About 36 kilometres of subsea flowlines are needed along with five manifolds, two west of the semisub floater and three to the east.

The manifolds should be of standard design, integrated with subsea umbilical termination units and mono-ethylene glycol distribution units.

Sources said that bids covering the SPS and SURF could be issued as early as October this year, packages that will likely draw interest from players including TechnipFMC, GE, Aker Solutions, OneSubsea and Oceaneering.

CNOOC Zhanjiang, which is responsible for exploration and development activities in Qingdongnan basin, aims to start drilling and completion operations at the end of 2018, with subsea installation work set to take place in 2019, before first gas flows in September 2020.

Initial production is pegged at 2.5 billion cubic metres per annum, peaking at 10 Bcm in 2030.

CNOOC has drilled about 10 wells at Lingshui 17-2, which is thought to hold about 136 Bcm of recoverable gas.

Gas will initially be sent to Hong Kong through an existing pipeline for power generation, but will also target markets in the Pearl River Mouth Delta region in Guangdong province.

The current plan also involves building a subsea spur linking the Yacheng-Hong Kong gas pipeline and the onshore Zhuhai gas terminal, which currently processes gas from the Liwan field in the Pearl River Mouth basin in the South China Sea.