Page 5 - AfrOil Week 02 2020

AfrOil COMMENTARY AfrOil
 At least $500mn of the total will go to Subsea Integration Alliance. This non-incorporated alliance between Subsea 7 (UK) and Schlum- berger subsidiary OneSubsea (US) was formed to execute a front-end engineering and design (FEED) contract for the Sangomar scheme. It will now move into the engineering, procure- ment, installation and construction (EPIC) phase of work, which will include “the con- struction and installation of the integrated sub- sea production systems and subsea umbilicals, risers and flowlines,” Woodside noted in its statement.
Subsea 7 confirmed the final award of the contract to the alliance in a statement dated January 10. “The project work scope covers the engineering, procurement, construction, transportation and installation of the SURF sys- tem and associated subsea production systems (SPS),”itsaid.“Thedevelopmentwillinclude23 wells, 107km of rigid flowlines, 28km of flexi- ble risers and jumpers, and 45km of umbilicals in water depths between 700 metres and 1,400 metres.”
It added: “Offshore activities will take place from 2021 to 2023 using Subsea 7’s reel-lay, flex- lay and light construction vessels.”
Drilling plans
The RSSD joint venture’s other service con- tractor is Diamond Offshore Drilling, based in Houston. The group has signed a well-based contract for use of two Diamond Offshore rigs, Ocean BlackRhino and Ocean BlackHawk, at Sangomar.
Like Subsea Integration Alliance, the drilling contractor has not disclosed the exact value of its contract with RSSD. According to EnergyVoice, day rates for Ocean BlackRhino and Ocean BlackHawk stand at $400,000 and $495,000 respectively.
Diamond Offshore will make the former rig available to Woodside and its partners from the first quarter of 2021 until the first quarter of 2023. Meanwhile, Ocean BlackHawk will be used for drilling work at Sangomar from the first quarter of 2022 until the first quarter of 2023.
FPSO in the works
RSSD’s third contractor is MODEC (Japan).
This company is sure to account for a large share of the total budget for the project, as it will build the floating production, storage and off-loading (FPSO) vessel that the joint venture will anchor at the block.
MODEC confirmed in a statement dated January 10 that it had finalised its contract for the supply of the FPSO. The company had signed a FEED agreement with the joint venture in February 2019 and is in a position to go ahead with construction now that the FID is in place.
In its statement, the Japanese firm said it had pledged to deliver the FPSO to Woodside and its partners in early 2023.
When complete, the vessel will be able to process 100,000 barrels per day of crude oil, as well as 145,000 bpd of water injection and 130mn cubic feet (3.96mn cubic metres) per day of natural gas. It will be able to store at least 1.3mnbarrelsofcrude.
RSSD intends to moor the FPSO perma- nently at a site that lies in 780-metre-deep water, MODEC said. It also noted that one of its sub- sidiaries, SOFEC, would provide the external turret mooring system for the vessel.
Take-off
With these contracts now in motion, Woodside and its partners are on track to begin production at Sangomar in 2023.
“We look forward to progressing the project towards first oil in early 2023 and expect that our experience in offshore FPSO developments will support its delivery on cost and schedule,” said Peter Coleman, the CEO of Woodside. “We are grateful for the ongoing support of the gov- ernment of Senegal and will be working with all stakeholders to ensure that the country’s first oil project delivers enduring benefits to its people.”
Remarkably, RSSD has been able to push ahead to this point even as its members have been embroiled in a legal dispute. FAR has claimed that it was not allowed to exercise its right of first refusal for Woodside’s 35% stake in and operatorship of the project. ConocoPhillips (US), the previous owner, sold the stake to the latter company in 2016.
None of the shareholders in the project com- mented on this dispute, which is currently await- ing the outcome of arbitration proceedings. ™
“ partners are now
Woodside and its
on track to begin oil production at Sangomar in 2023
The block includes the Sangomar Offshore, Sangomar Deep Offshore and Rufisque fields (Image: FAR Ltd)
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