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GDF Suez awards $2.2 billion Cygnus detailed design to AMEC

GDF Suez, Centrica and Bayerngas sanction Cygnus development 

GDF Suez and its partners Centrica and Bayerngas  awarded the detailed design contract to AMEC for the development of the Cygnus natural gas field in the UK continental shelf in the southern North Sea.

Cygnus was discovered in 1988 in the blocks 44/12a and 44/11a.

Then several appraisal wells were conducted  until 2010 leading GDF Suez to revise upward the first estimated reserves of this gas field to proven and probable (2P) reserves amounting to approximately 18 billion cubic meters.

From actual reserves estimations, Cygnus is the sixth largest gas field ever discovered in the UK Continental shelf in the North Sea and the biggest one for the last 25 years.

Cygnus reservoir is located 150 km off the coast of England, in shallow water of 23 meters deep, then by 3721 meters deep and contains high quality raw natural gas.

At plateau production, Cygnus will produce 42,000 boe/d representing 5% of the natural gas production in the UK with the equivalent of the consumption of 1.5 million homes in 2016.

The partners share working interests in Cygnus as following:

 – GDF Suez 38.75% , is the operator

 – Centrica 48.75%

 – Bayerngas 12.5%

GDF Suez estimates the natural gas Cygnus project capital expenditure to $2.2 billion (1.7 billion Euros) and should provide with 4,000 direct and indirect jobs during construction phase. 

AMEC completed FEED for GDF Suez Cygnus

In October 2011, GDF Suez had awarded the front end engineering and design (FEED) to AMEC for Cygnus gas field development.

The FEED contract had an “option to continue” into an EPC contract.

AMEC completed the FEED work by mid 2012 allowing GDF Suez and its partners to sanction the next steps of Cygnus development.

From the FEED work the development concept is based on:

 – Two drilling centers, one hub and one satellite located at 5.9 kilometers distance

 – Four platforms, three platforms should be bridge-linked at the hub including the living quarter and utilities and the fourth one normally unmanned at the second center

 – A first phase of 10 production wells

 – An export pipeline through the Esmond Transportation System (ETS) to the Bacton gas terminal in North Norfolk.

In August 2012, GDF Suez converted the FEED contract into EPC contract to commence Cygnus development work immediately.

GDF Suez and its partners, Centrica and Bayerngas, expects AMEC to complete the detailed design work in 2014 for first natural gas deliveries from Cygnus  in 2015.

GDF Suez awarded first contracts to Heerema, BiFab, Ensco, Seaway Heavy Lifting and Saipem

While AMEC was awarded the conversion of its FEED contract into a detailed design contract, GDF Suez awarded also directly other large packages:

 – Heerema Fabrication Group (Heerema) will produce the topsides

 – Brunstisland Fabrications (BiFab) won the four jackets  and associated piles

 – Ensco will perform the main drilling operations

 – Seaway Heavy Lifting is in charge of the transportation and installation of the platforms in addition to the subsea structures

 – Saipem has been awarded the export pipeline

GDF Suez in brief

Home-based in Paris, France, GDF Suez is listed in Brussels, Belgium, and Paris.

GDF Suez booked revenues $110 billion (€90.7 billion) in 2011 with  218,900 people worldwide

GDF Suez is a utility company moving into the upstream exploration and production of natural gas.

GDF Suez provides highly efficient and innovative solutions to individuals, cities and businesses by relying on diversified gas-supply sources, flexible and low-emission power generation as well as unique expertise in four key sectors: liquefied natural gas (LNG), energy efficiency services, independent power production (IPP) and environmental services.

In UK, GDF Suez’s subsidiary, GDF Suez E&P UK Ltd,  is a significant player in oil and gas exploration and production in the UK Continental Shelf (UKCS)

Since 1997, GDF Suez built up a substantial portfolio of assets in the Central and Southern North Sea, and West of Shetland, comprising over 40 licenses, 16 as operator such as the Cygnus and Juliet gas fields

In UK, GDF Suez employs more than 250 staff and contractors in offices in London and Aberdeen.

Bayerngas in brief

Hone-based in Munich, Germany, Bayerngas GmbH is the communal gas procurement platform for its municipal shareholder customers, regional shareholders from Tirol as well as for regional providers and major industrial customers.

With its holdings and affiliates Bayerngas is engaged in national and international markets.

Bayerngas offers professional expertise relating to procurement, sales and marketing, network access, transportation and storage to support importing, trading and distribution activities.

According to market trends, Bayerngas provides its partners with access to the upstream business, adding value in moving increasingly towards the sources of gas.

Bayerngas has entered the Norwegian exploration and production segment through its affiliate Bayerngas Norge AS, Oslo, and is examining the options arising from new pipeline projects, such as NABUCCO.

Centrica in brief

The UK-based Centrica is and integrated energy company operating predominately in the UK and North America.

From Upstream Centrica sources, generates, processes, trades and stores energy.

Downstream it supplies gas and electricity to millions of homes and businesses and offers a range of home energy solutions and low carbon products and services.

In UK British Gas is the leading residential and business energy and services provider.

Upstream Centrica Energy and Centrica Storage operations are working to provide energy security for our customers, sourcing, storing and supplying the energy that millions of homes rely on every day.

With Cygnus, GDF Suez and its partners, Centrica and Bayerngas, are proceeding to the development of one the largest gas field in the UK continental shelf that AMEC, Heerema, BiFab, Ensco and Saipem are planning to complete for production in 2015.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

1 thought on “GDF Suez awards $2.2 billion Cygnus detailed design to AMEC”

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