Pandora FLNG Wison Offshore & Marine

Transcription

1 Pandora FLNG Wison Offshore & Marine Cott O&G representatives on the Caribbean FLNG vessel, Nantong. Page:1

2 Contents Project Background Wison Capability FLNG Solution Capital Cost Operational Expenditure Development Pathway Construction Schedule Financial Viability Cott O&G representatives Andrew Dimsey, MD, and Alistair Jobling, Commercial Manager, in the Nantong fabrication yard board room. Page:2

3 Pandora FLNG Project Background Wison Offshore & Marine was asked to undertake high level concept study for the development of the Pandora gas field using floating LNG technology based on the following criteria: 800 bcf recoverable resource of lean gas Production rate up to 200 mmscfd Acid/sour gas removal and disposal The study included: Identification of location-specific parameters for developing concept including: Hull design LNG containment system and capacity Pre-treatment Mooring and offloading Description of technically feasible concepts and indicative capital costs High level operating estimates Pathway for evaluation and development of preferred FLNG solution. Page:3

4 Business Segments Focusing on the Energy Industry and Hi-tech Sectors Wison Group Engineering Services Offshore & Marine Clean Energy Emerging Business Specializing in petrochemicals, coal chemicals and refining industries A word-class EPC Contactor focused providing solutions on international oil and gas EPC Projects. Using coal as feed stock, Wison Energy provides high quality industrial gases via clean coal technology. Development of emerging chemical and LNG related businesses. The Wison Group employs approximately 3,000 people worldwide Page:4

5 Wison Offshore & Marine International oil and gas EPC contractor and fabricator. Services cover the full life cycle of project delivery, from facility design and engineering to project management, construction and commissioning. Proven expertise with fixed platforms and modules, LNG systems, floating production and drilling systems, offshore support vessels and offshore lifting equipment. Page:5

6 Current Projects Caribbean FLNG Caribbean FLNG barge scheduled for operation early 2015 Project is on schedule and budget. FLNG is to be located 4 Km offshore in 14m water depth FLNG storage and process requirements are: - Storage - 16,000 m 3 - Liquefaction - 0.5mmtpa - Alongside FLNG is 140,000 m 3 LNG Floating Storage Unit (FSU) Gas source is Pacific Rubiales Energy s (PRE) La Creciente field PRE will build an 18 inch pipeline to transport gas from the field to the coast (88 Km) Page:6

7 Floating Regasification Unit Projects Wison has signed contracts for the development of 2 LNG regasification barges Newbuild barge-based Regasification capacity of 4.47 MTA 750MMscf/d nominal 1,000MMscf/d maximum Designed to accommodate future regasification expansion to 8.94 MTA with addition of another 750MMscf/d module Storage either on board or a separate unit (FSU) Moored via dolphin mooring system in 20m of water Wison - EPCIC contractor Overall project management E-P-C-I-C Transportation Start-up Major subcontractors: Regasification - Black & Veatch and Hammworthy Page:7

8 Nantong Yard Covers an area of 640,000m 2 Coast line of 735m Water depth 15m Peak Staffing 3,500 Dry dock: 290m(L) x 68m(W) Skid way: 60T/m 2 : 600m x 42m Operational Since 2006 Page:8

9 Under Construction Zhoushan Yard Total investment $200 million US Covers an area of 1,500,000 m 2 Coast line of 2,300m Water depth 15m Facing international sea route Dry dock: 400m(L)x120m(W) Skidway: 30,000 ton Skidway Operational: 2013 Page:9

10 Partnerships and Technology Wison would be the primary EPCIC contractor for the fabrication and design of the FLNG vessel, Wison s scope: - FLNG Project Management, Engineering, Procurement, Construction, Commissioning, Transportation, Installation and Start-up of the Facility Wison will engage major subcontractors: - Black & Veatch: Topside LNG Equipment Design, Procurement & Commissioning - Liquefaction technology is Black & Veatch PRICO Single Mixed Refrigerant (SMR) - SPB Tank manufacturer: Cargo Tanks & Cargo Handling Systems EPCIC contract structure to be finalised based on ownership structure of vessel and key infrastructure Process Design Client/Owner EPCIC Contractor LNG Storage and Handling System Infrastructure subcontractor Potential Build Own Operators Page:10

11 PRICO SMR Liquefaction Technology Black & Veatch s patented PRICO Single Mixed Refrigerant technology is the simplest form of mixed refrigerant cycle. B&V has considerable experience in the field: - 30 global LNG plants in operation - 18 plants under engineering or construction Process is scalable over wide capacity range but core process remains the same. Compact layout with modular philosophy lends itself to use offshore. Simplicity of process results in relatively low cost. Simplified operations lead to quick startup. Page:11

12 Concept 1 Offshore FLNG FLNG vessel with 170,000m 3 SPB tank storage to eliminate sloshing 2 x 0.5 MTPA water-cooled liquefaction trains (Black & Veatch PRICO) Gas Turbine Heavy hydrocarbons used in Fuel Gas Onboard gas treatment (amine tower, mercury bed) and reinjection of sour gas stream into reservoir External turret mooring vessel can weathervane Side-by-side or turret offloading to be determined - subject to review of the metocean conditions and suitability of offloading solutions Accommodation and utilities Vessel construction estimated to take 38 months Page:12

13 Concept 2 Near Shore LNG Field production via a Buoyant Tower. - Dry completions on board - Gas pre-treatment and sour gas re-injection Clean gas pipeline to near-shore location (approx 160km) 170,000m 3 storage barge jetty/dolphin moored in min 14m depth or Gravity Based Structure (GBS) 1 MTPA liquefaction capacity via 2 x 0.5 MTPA Liquefaction trains Side-by-side offloading Vessel construction estimated to take 36 months Page:13

14 Near Shore Schematic Page:14

15 Near-shore Solution Offshore field production using a Wison Horton designed Buoyant Tower Cost effective solution for the water depth and soil conditions - Dry-trees - Quick installation - Wison installed the BPZ BT offshore Peru in 2012 Buoyant Tower topsides include production trees, gas pre-treatment for sour gas removal and cleanup, sour gas reinjection, and compression for the subsea pipeline to a near-shore location Sub sea pipeline will run approximately 160km to an inshore location that provides protection from harsh weather and seastates LNG barge will be located in shallow water (at least 14m) allowing LNG carriers to berth alongside whilst eliminating or minimising the amount of dredging required Barge can be jetty moored or part of a Gravity Based Structure Page:15

16 Horton Wison Buoyant Tower Current Status Page:16

17 Buoyant Tower Installation CX 15 Topside and Hull on one Vessel Page:17

18 Advantages of a near shore solution Advantages Near shore LNG barge is considerably simpler and less expensive Reduced infrastructure compared to traditional onshore LNG plants Can monetise onshore and/or offshore gas Easier LNG transfer conditions, reduced impact of weather windows Easier to develop a generic design for expansions Easier logistics Logistics hub can be located nearby on land - Support vessels should be more readily available and cheaper - Shared utilities - Accommodation Safety Located closer to local communities and businesses Disadvantages Total solution is more costly and has greater proportion of non-relocatable capex (eg pipeline) Increased staff costs due to dual platform. Near shore LNG barge is considerably simpler and less expensive than an onshore facility Page:18

19 Project Capital Cost Estimates Concept 1 Offshore FLNG - 1 MTPA FLNG vessel, inclusive of pre-treatment, 170,000m 3 SPB LNG storage, turret moored with tandem offloading. - Estimated CAPEX of $US $1,100 / tonne LNG throughput Concept 2 Near-shore LNG - 1 MTPA FLNG barge, 170,000m 3 SPB LNG storage, jetty / dolphin moored with side-by-side offloading - Near-shore solution includes the cost of: - Buoyant Tower, estimated at $US 360M; and - 160km sub-sea pipeline, estimated at $US 418M - $US 600 -$700 / tonne of LNG throughput for LNG vessel - Total estimated CAPEX of $ Bn Page:19

20 Operating Expenses and Project Viability Operating Costs Deepwater solution - Higher operational expense due to the remoteness, increased staffing costs, impact of weather conditions and sea-state on production and offloading, gas pre-treatment and sour gas reinjection Liquefaction operational expense of between $1.50/ mmbtu to $2/ mmbtu Near shore solution Lower liquefaction operational expense, however additional costs or tariffs for the Buoyant Tower and subsea line operation Overall near shore LNG operational expense of between $2/ mmbtu and $2.5/ mmbtu Operational expenses for both scenario s include maintenance, refrigerant makeup, staff, chemicals and consumables. Total cost to produce LNG from the Pandora field are in the region of $6.5/ mmbtu to $8.10 /mmbtu including recent LNG carrier day rates Project Viability Based on the information analysed by Wison and the capex and opex assumptions, the Pandora FLNG project is appears technically and commercially viable and should progress to the next stage of development Page:20

21 Development Pathway Concept Selection Pre-FEED +/- 20% Capital cost estimates development cost. - The field development components to be included are the Buoyant Tower with topsides, subsea pipeline (in the case of near-shore development) and FLNG facility FEED to develop a definitive design and a +/- 10% cost estimation. This stage will result in a lump sum EPC price for the delivery of an FLNG vessel, Buoyant Tower and pipeline (if near-shore development) FID EPC Construction contract with Wison Offshore & Marine Installation and Commissioning Hand over and on going support Page:21

22 Pre-FEED The next steps are further engineering studies to develop a basis of design used during the pre-feed design of the LNG barge, buoyant tower, sour gas reinjection and subsea pipeline Pre-FEED stage will determine the facilities required and identify all major technical challenges and issues The end result of the pre-feed study is an initial engineering design with a cost estimate of increased accuracy to evaluate project economics Wison Offshore & Marine will provide a pre-feed project CAPEX and OPEX with a cost accuracy of (±20%) for a lump sum turnkey near-shore LNG barge and Buoyant Tower Environmental and government regulations and approvals to be identified by the owner and addressed will require ongoing engineering input in the approval processes as the project proceeds Page:22

23 Construction Schedule Preliminary schedule based on WOM s experience with a nearshore FLNG Total construction timeframe from award of EPCIC contract until first gas is approximately 36 months Page:23

24 THANK YOU Wison Offshore & Marine (Hong Kong) Ltd. Australian Office Level 24, Allendale Square 77 St Georges Terrace Perth, WA, 6000 Wison Offshore & Marine (USA), Inc Broadfield Boulevard, Suite 150, Houston, Texas, USA Tel: Fax: Wison Offshore & Marine, Ltd. 699 Zhongke Road, Zhangjiang Hi-tech Park, Shanghai, China Tel: Fax: Page:24