Nippon to run fast track for Layang FPSO conversion
The Japanese-owned joint venture JX Nippon Oil & Gas Exploration Ltd (JX Nippon) and its local partner Petronas Carigali (Petronas) are now running on the fast track to develop the Layang gas field, offshore Sarawak in Malaysia, with a converted floating storage production and offloading (FPSO) vessel.
JX Nippon is a joint venture between three Japanese partners where the working interests are shared between:
– JX Nippon Oil & Gas Exploration Corporation (NOEX) 78,7% is the operator
– Inpex Corporation 15%
– Mitsubishi Corporation 6.3%
– JX Nippon 75% is the operator
– Petronas 25%
JX Nippon and Petronas to charter Layang FPSO
– Build a wellheads platform
– Convert a FPSO
In their concept, the production of gas and condensate will be separated on the Layang FPSO from where the separated gas will be transferred to the neighboring Helang platform to be exported by pipeline to the Bintulu LNG plant.
– 75 million cubic feet per day (cf/d) of gas
– 8,000 barrels per day (b/d) of condensate
The wellheads platform should be awarded in mid 2014 to a local shipyard in respect with the Malaysian local content policy.
This solution is reducing drastically the capital expenditure of the Layang Development project, but it requires to find an existing vessel at the convenient size and state to be converted, a slot in a shipyard to carry out the conversion and a company to own and operate the converted FPSO, all that in a constrained time frame and demanding terms and conditions of the charter contract.
JX Nippon and Petronas are now in discussion with TH Heavy Engineering (THHE) for this charter agreement but no decision are made yet so that the converted Layang FPSO should not be in operations in the Block SK10 before 2016.