A NUMBER of contractors are in bid clarification discussions with Singapore independent KrisEnergy for two turnkey contracts for the landmark Apsara oil project off Cambodia.

Two engineering, procurement, construction, installation and commissioning packages have been the subject of competitive bidding for the past three months — one for a minimum facilities offshore platform, and one for integrated drilling services.

Sources said many regional offshore builders had shown an interest in the minimum facilities platform, but most had fallen away, leaving Chinese fabricators to compete for the prize.

Chinese contractor Offshore Oil Engineering Company (COOEC) is in active discussions with KrisEnergy, as is Bomesc Offshore Engineering, and possibly one other player, sources said.

Sources said KrisEnergy is interested in the Chinese contractors due to their ability to provide finance of at least $100 million. However, sources cautioned that project financing could take time to materialise.

For the integrated drilling services contract, the contenders include China Oilfield Services, GE-controlled Baker Hughes, Schlumberger and Halliburton.

Two other elements of this initial phase of the Block A development, which is Cambodia’s first ever offshore oil project, are a floating production barge and a floating, storage and offloading vessel.

KrisEnergy has its own production barge, and Singapore’s Keppel Shipyard — KrisEnergy’s largest shareholder with a near 40% interest — is the preferred contractor for the refurbishment and upgrade of that facility.

Kris Energy and Keppel have a co-operation agreement under which Keppel is able to offer the oil company offshore solutions for its oil and gas operations in Asia.

The planned minimum facilities platform will have 24 drilling slots, while the production barge will be designed to process up to 30,000 barrels per day of liquids.

Gas, oil and water will be separated on the barge while oil production will be sent via a 1.5-kilometre pipeline to the permanently moored FSO.

The Apsara oilfield in located in Block A, and was discovered in 2005 by US supermajor Chevron.

Additional minimum facilities platforms are planned for future development phases.

KrisEnergy operates Block A with a 95% working interest. The government of Cambodia holds the other 5%.

Weekly

Turnkey hopefuls and KrisEnergy in Apsara talks