CNOOC opts for Lingshui FPSO and export pipeline
The state-owned China National Offshore Oil Corporation (CNOOC) is opting for a conventional scheme to develop the offshore gas field Lingshui 17-2, one of its largest discovery in the deepwater of the South China Sea.
Located 150 kilometers south of the Hainan Island, the Lingshui 17-2 gas field lies by more than 1,500 meters water depth in the Qiongdongnan Basin.
In parallel to this exploration phase, CNOOC has been exploring the different concepts that could be used to developed the Lingshui 17-2 project.
Because of the water depth and distance from the nearest shore at the Hainan Island, CNOOC has considered a:
– Conventional scheme combining a floating, production, storage and offloading (FPSO) vessel with an export pipeline to shore
– Tension-Leg platform (TLP) with export pipeline
– SPAR platform with export pipeline
– Semi-submersible platform with export pipeline
Until end of 2014, the FLNG solution had the preference because of the deep water and the 150 kilometers distance from shore.
CNOOC gauges FLSRU barge moored at Hainan Island
Meanwhile CNOOC announced a 35% cut in its capital expenditure for 2015, posting costs reduction on the top of its agenda.
Through different sections an export pipeline from Lingshui 17-2 to Zuhai Terminal should reach 1,000 kilometers from which 80% should be offshore.
Therefore CNOOC is considering to moore a barge-based floating, liquefaction storage and regasification unit (FLSRU) near shore the Hainan Island.
For a liquefaction capacity of 1.2 million t/y, this FLSRU is budgeted at $300 million capital expenditure.
Such FLSRU should limit the export pipeline to 150 kilometers and would provide China with an 100% home made solution.
Assuming this conceptual design being validated on the first quarter 2015, CNOOC would move into the front end engineering and design (FEED) phase in 2016 for an engineering, procurement and construction (EPC) phase to follow on fast track for the first commercial production expected in 2019.