Page 11 - AsianOil Week 13 2022

AsianOil EAST ASIA AsianOil

Japan to support Kuwait’s oil capacity push

INVESTMENT A Japanese export credit agency (ECA) is set to facilities as well as upgrades to existing Jurassic
sign a deal with Kuwait’s Ministry of Oil (MoO) production facilities and the addition of new
to support the Middle Eastern country’s expan- production units and wells.
sion of oil production capacity. At present, the country has little wiggle room
A source in the Japanese government was on production, but efforts are gaining momen-
quoted by S&P Global Platts as saying that a tum with neighbouring Saudi Arabia to step
memorandum of understanding (MoU) would up output from their shared Partitioned Neu-
be signed between the two countries for Nippon tral Zone (PNZ). Oil production from the area
Export and Investment Insurance (NEXI) to is reported to have run at an average of around
provide insurance for $1bn of finance as Kuwait 180,000-190,000 bpd during 2021, though
works to increase its capacity from its current November and December flows were in excess
level of just over 2.6mn barrels per day (bpd). of 250,000 bpd. Hashem laid out vague plans for
The country is believed to have produced KOC to raise its share of PNZ capacity to around
almost at capacity during February while plans 350,000 bpd by 2025, implying a total output of
were announced by the MoO and state-owned 700,000 bpd.
Kuwait Petroleum Corp. (KPC) in October The Platts report said that NEXI would pro-
to increase maximum sustainable capacity to vide insurance for a $1bn financing package
3.5mn bpd by 2025 and 4mn bpd a decade later, expected to be signed off by a group of Japanese
five years earlier than previous guidance. and Western banks. Meanwhile, the MoU will
Hashem said the firm’s upstream subsidi- also cover work to explore business opportuni-
ary Kuwait Oil Co. (KOC) would achieve the ties for Japanese companies in Kuwait in terms
increase through work on gathering centres, the of energy production and decarbonisation, the
expansion of water handling and water injection source said.™

OCEANIA

Petrofac wins contract for first phase of

Northern Endeavour FPSO decommissioning

PROJECTS & SERVICE provider Petrofac announced on “This contract builds on 15 years of working
COMPANIES April 1 that it had been awarded a “major” in Australia and is further proof of our growing
decommissioning contract by the Australian and long-term ambitions in the country,” stated
government. Petrofac’s regional director for Australia, Josie
The contract covers the first phase of the Philips. “A critical element will be upskilling the
decommissioning of the Northern Endeavour local workforce to meet the challenges of billions
floating production, storage and offloading of dollars of decommissioning work in Australia
(FPSO) facility. Phase 1 of the contract has the now and in the future. It is Petrofac’s aim to be
potential to be worth AUD325mn ($244mn) to a local company, growing local jobs, local skills
The Endeavour FPSO’s Petrofac, the company said. and the local supply chain. I’m delighted that we
former owner, the Under the terms of the contract, Petrofac will have Monadelphous and Linch-pin already on
Northern Oil and Gas be responsible for decommissioning and discon- board.”
Australia (NOGA) group nection of the FPSO from its subsea equipment, Northern Endeavour is a 274-metre long
of companies, went into as well as temporary suspension of the project’s facility, moored between the Laminaria and
liquidation in 2020. wells. Disconnection of the FPSO is anticipated Corallina oilfields about 550 km north-west of
to take around 18 months to complete. The com- Darwin in the Timor Sea. It is not currently pro-
pany said its scope of work included the provi- ducing oil, and its former owner, the Northern
sion of its “unique integrated services, working Oil and Gas Australia (NOGA) group of com-
with both local and global suppliers”. panies, went into liquidation in 2020.
Petrofac said local engineering services firms The Australian government said that year
Monadelphous and Linch-pin had already been that it had decided to decommission the facility
confirmed as supply chain partners for the and its associated oilfields following a review of
project. its options for the vessel.™

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