Report Sees $50 Billion In Units Coming Onstream In Next Five Years
The Douglas-Westwood World Floating Production Report’s analysis of 130 potential future deployments forecasts $50 billion of units coming onstream between 2017 and 2021.
The company acknowledged that many projects have fallen behind but noted that the Mad Dog Phase 2 production platform order broke the hiatus this year.
Major conclusions from the report include:
- A 40% decline compared to the hindcast and -6% CAGR between 2017 and 2021 as a result of the downturn;
- A record $50 billion in units coming onstream, albeit many of those commissioned in 2017-2018 were ordered when prices were at record levels; and
- FPSO units will continue to rule the segment both in number (45) and forecast capex (84%) over the 2017-2021 period.
The report’s regional analysis highlights how Latin America will account for 31% of units and 33% of capex, both surpassing any other region. Asia’s proportion of expenditure compared to installations will be 10% and Western Europe’s will be 14%. However, Africa’s 25% of capex from its nine installations demonstrates the high value of units in that region.
GE’s Latest MV7-5L Drive Goes To Work At Greater Enfield
GE Energy Connections’ MV7Series 5 Level (MV7-5L) drive was selected to sit topside on an FPSO unit for the Greater Enfield project offshore Exmouth in Western Australia. The project aggregates production from the Laverda Canyon, Norton over Laverda and Cimatti oil accumulations.
The drive is equipped with ultimate waveform configuration supplied by GE’s Power Conversion, a sub-business from GE Energy Connections. It will help start and control two multiphase pumps operating in parallel 32 km (20 miles) away from the FPSO unit.
The drive’s five-level topology enables it to provide increased voltage. The 12-kilovolt, high-voltage output eliminates the need for a step-up transformer, saving space onboard the vessel and requiring lower installation costs. The smaller, lighter drive allows an additional 15 to 20 tons worth of equipment on the FPSO unit.
“Less weight from the ultimate waveform drive solution installed on the FPSO unit means less structure support is required,” said Gilles Chene, senior sales manager of GE Energy Connections’ Power Conversion. “In addition to the obvious cost-saving advantage, it also enables certain projects that were not feasible in the past, as the new solution allows more equipment to be installed before reaching the maximum capability of the supporting structure.”
Removing the step-up transformer simplifies the overall solution, which ensures higher reliability. Other features of the MV7-5L drive include its ability to produce cleaner power with fewer harmonics, which can help increase equipment life expectancy.
“The high voltage and smaller footprint characteristics of this MV7-5L drive make it ideal for applications in the demanding offshore support industry,” said Luca Polezzi, oil and gas segment leader, GE’s Power Conversion. “The ultimate waveform configuration is based on proven technology, and its predecessor has an impressive 10-gigawatt installed base worldwide. Customers can be assured that they are receiving the latest technology, primed to support all endeavors.”
Wood Group Secures New Contract With Hess In Malaysia
Wood Group will support Hess’ newbuild fixed and floating offshore facilities offshore Malaysia as part of a five-year contract.
The operations are in the North Malay Basin development area located about 150 km (93 miles) northeast of Peninsular Malaysia. The deal is with Hess Exploration & Production Malaysia.
The contract includes a one-year extension option and will support as many as 130 new full-time positions in Malaysia.
Wood Group will provide integrated operations and maintenance services including core offshore personnel, onshore technical support, training and competency assurance services. The contract also includes technical services covering brownfield engineering, risk-based inspection, integrity management and computerized maintenance management system support.
The contract builds on Wood Group’s 15-year global relationship with Hess, which includes ongoing contracts in Equatorial Guinea and the Gulf of Mexico.
“This contract to support Hess’ significant greenfield facilities in Malaysia demonstrates the proven success of our integrated approach on this key client’s projects worldwide and their confidence in our technical services, which optimize production and enhance efficiency,” said Dave Stewart, CEO for Wood Group’s Asset Life Cycle Solutions business in the Eastern Hemisphere.
“Our commitment to creating strong local employment and supply chain opportunities in the areas where we work will be reinforced by this contract, which will focus on the recruitment and opportunity development for the national workforce in Malaysia,” he added.
—Joseph Markman
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