Page 12 - AsianOil Week 39 2022

AsianOil NEWS IN BRIEF AsianOil

Shell invests in second a three-year contract to deliver its rig the giant floating production storage and
integrity and inspection services to Petronas offloading (FPSO) vessel and restoring the
offshore project in a month Carigali, a subsidiary of Petronas. Laminaria-Corallina oil fields in the Timor
Sea.
The scope of work ADC Energy will
Shell announced a second investment in provide includes inspection and operational Last July, the Australian government
Malaysia's oil and gas sector in a month assurance audits of mobile offshore drilling released a Request for Expressions of
as the major and its partners, including units for Petronas Carigali’s domestic assets. Interest (REOI) for Phase 1 works related
Petronas, aim to revive output in an ADC Energy will manage this contract to decommissioning of the FPSO, saying
environment of tight global supply. from its Kuala Lumpur office, with support that work in Phase 1 is expected to include
Shell's decisions come after the war from local partner Onyx. removal of the FPSO from the field in
in Ukraine disrupted Russian oil and gas Financial details were not disclosed. accordance with good industry practice;
supplies and boosted prices. Oil and gas installation of temporary barriers between
producers in Asia are struggling to sustain the reservoir and the environment;
output after years of under-investment GMS secures 22-month subsea and topside flushing, cleaning
in the sector as international companies and demucking; sea fastening for tow;
scaled back to focus on exploration and contract for one for jack- disconnection of risers; disconnection of
production in Africa and the Americas. moorings, and ocean tow to a designated
Sabah Shell Petroleum Co, a Malaysian ups location.
unit of Shell, said on Monday it will Petrofac said in April that the Phase
invest in phase 4 of the Gumusut-Kakap- GMS, a UAE-based provider of self‐ 1 contract, awarded by the Federal
Geronggong-Jagus East (GKGJE) deepwater propelled, self‐elevating support vessels Department of Industry, Science, Energy
offshore development project along with its serving the offshore oil, gas, and renewables and Resources, had a potential value to of
partners. No amounts were given. industries, said Tuesday it had secured a up to AUD$325 million.
The GKGJE phase 4 development is a new contract. Under the contract, Petrofac is the
subsea tie-back project that is expected to The 22-month contract is for an E-Class Outsourced Operator responsible for
achieve first oil in late 2024, Shell Malaysia vessel with an unnamed EPC client in the decommissioning and disconnection of
said in a statement. MENA region. the FPSO from its subsea equipment, and
Shell's partners in the GKGJE project The contract is due to start in Q2 2023. temporarily suspending the wells.
include ConocoPhillips Sabah Ltd., Petronas Mansour Al Alami GMS Executive The government last year stunned the oil
Carigali Sdn. Bhd., PTTEP Sabah Oil Chairman, said: "This contract award and gas industry when it first introduced
Limited, PT Pertamina Malaysia Eksplorasi reflects the increasing demand for vessels the notion that a levy would be imposed
Produksi and others. and improved day rates for which GMS on all offshore oil and gas producers
The GKGJE project will revive declining remains well positioned to take advantage in the country to pay for the cost of
output of Kimanis crude, Malaysia's flagship of going forward." decommissioning of Laminaria-Corallina
export grade. Kimanis production has been Financial details were not disclosed. fields in the Timor Sea, containing the
falling because of a lack of investment and Northern Endeavour FPSO.
because of technical issues at the Gumusut- International oil giants Chevron Corp,
Kakap and Malikai fields. Petrofac picks AHTS to help Exxon Mobil Corp, and Shell, as well as
Earlier in the day, Malaysia's state energy the Australian oil firm Woodside last year,
major Petronas said the phase 3 project at with Northern Endeavour expressed opposition to the levy and the
the Gumusut-Kakap (GK) deepwater field call to pay for the decommissioning of the
achieved its first oil production on July 31. FPSO disconnection site in which they had never had any stake.
Two new oil producer wells and two Woodside opposed the levy, too.
water injector wells were drilled at the GK Akastor's subsidiary DDW Offshore has Australian Parliament eventually
field, the company added. won a one-year contract with Petrofac for passed legislation to impose a temporary
"Once fully completed in Q1 2023, the the AHTS vessel Skandi Atlantic. levy on industry to recover the costs of
four wells will add around 25,000 barrels The AHTS will support the decommissioning and remediating the
per day to GK’s existing production disconnection of the FPSO "Northern oilfields and associated infrastructure.
capacity," Petronas said. Endeavour" together with towing and well According to the government, the levy
Last month, Shell announced plans isolations work in the Laminaria Corallina ensures that taxpayers are not left to pay for
to invest with Petronas to develop the oil fields in the West Timor Sea. The the decommissioning and remediation of
Rosmari-Marjoram gas fields off the coast contract start date is September 27th, 2022. production facilities.
of Bintulu in the Malaysian state of Sarawak. The Australian Government earlier Documents on the government's website
The project is designed to produce 800 this year awarded London-listed oilfield show that the levy will be at a standard
million standard cubic feet of gas per day, services giant Petrofac a contract for Phase rate of 48 cents (AUD) per barrel of oil
with gas production expected to start in 1 of the decommissioning of the Northern equivalent produced in each levy year.
2026, Shell said in a statement. Endeavour FPSO, offshore W. Australia. The levy is imposed for financial years
beginning between July 1, 2021, and July 1,
Northern Endeavour FPSO is currently 2029.
Petronas hires ADC for moored between the Laminaria and that the levy can be imposed for the
"This period has been chosen to ensure
Corallina oil fields about 550 kilometers
offshore rig inspection northwest of Darwin in the Timor Sea, and duration of the decommissioning of the
Laminaria and Corallina oil fields and
is not producing oil.
services Oil & Gas Australia (NOGA), went into associated infrastructure," the government's
After the offshore fields' owner, Northern
website info shows.
Aberdeen-basead ADC Energy has, through liquidation in 2019, the government was
its local partner in Malaysia, Onyx, secured left with the responsibility of removing

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