French offshore contractor Technip has secured a major deal from China’s offshore operator CNOOC Ltd to provide engineering, procurement, installation and construction services for the Panyu gas complex in the South China Sea.
Technip is understood to have beaten rivals Saipem and Subsea 7 and a confirmation could be immintent, sources said.
The potential new award follows the French contractor confirming a contract win from China’s Offshore Oil Engineering Corporation (COOEC) for shallow water pipelay work for giant Liwan 3-1 gas field in the same sea area. The workscope covers a total 46.8 kilometres of pipelines to link the Panyu 34-1, Panyu 35-2 and Panyu 35-1 gas fields and associated equipment to be installed in water depths of between 195 and 338 metres.
As the lead contractor, Technip will subcontract part of the pipelay job to CNOOC Ltd’s sister company COOEC, sources said.
The CNOOC-operated Panyu 34-1/35-1/35-2 gas fields lie about 250 kilometres south-east of Hong Kong.
The major facilities include a central processing platform PY34-1 CEP, which will be installed at the Panyu 34-1 gas field, plus subsea production systems at the Panyu 35-1 and Panyu 35-2 gas fields. The scheme calls for tying back the Panyu 34-1, 35-1 and 35-2 gas fields to CNOOC’s first deepwater field Liwan 3-1, scheduled to put into operation in the third quarter of 2013.
Panyu’s subsea system will be tied back to PY34-1 CEP, which is linked to the Liwan 3-1 central platform via a 31.3-kilometre subsea pipeline.
Technip in Perth is providing the front-end engineering and design for the subsea system.
The oil, gas and water from PY34-1, 35-1 and 35-2 are processed at the PY34-1 central platform and then transported to the Liwan platform. After separation, metering and pressurisation, the oil and gas will be moved to the Gaolan gas plant in Zhuhai in Guangdong province for further processing.
First gas from Panyu is expected in late 2013 or early 2014 at 1.4 billion cubic metres per annum.
Technip recently announced it had won an award from COOEC to install a pipeline in shallow water areas of the Liwan 3-1 gas field, which spans 260 kilometres from the Liwan central processing platform to the Gaolan gas plant.
The workscope covers the installation of 160 kilometres of 30-inch pipelines.
Meanwhile, CNOOC Ltd is also expected to soon award a contract to US contractor Cameron for Panyu’s subsea hardware.