Golar LNG has made a deal with BP to provide an FLNG unit for the oil major’s Greater Tortue/Ahmeyin project development located offshore Mauritania and Senegal.
The Tortue/Ahmeyim field development is located in the C-8 block off the shore of Mauritania and the Saint-Louis Profond block offshore Senegal.
The Tortue discovery was made by Kosmos Energy, which farmed down its investment to BP in December 2016. BP now has the largest interest (~60%) among the four partners in the project and is the operator.
Golar said on Thursday it has entered into a preliminary agreement and exchanged heads of terms for a charter agreement with BP Mauritania Investments Ltd and BP Senegal Investments Ltd, in their capacity as block operators.
The heads of terms represents a commitment between the parties to translate the key commercial terms into a full agreement and proceed with Front End Engineering Design (FEED) on the provision of an FLNG vessel to support the development of Phase 1A of the Greater Tortue/Ahmeyin field.
The preliminary agreement creates obligations on Golar to progress FEED work and be ready for a vessel conversion from July 1, 2018 onwards; which would be contingent on Project FID, expected end 2018. The vessel conversion would take place at Keppel Shipyard building on Keppel’s delivery of the FLNG Hilli Episeyo , utilizing Black and Veatch Corporation’s PRICO technology.
The preliminary agreement also includes an option, but not an obligation, for BP on a second FLNG vessel. In the event that FID is not taken customary termination fees apply.
Golar CEO, Iain Ross , commented: “This agreement with BP underscores the value that Golar’s unique FLNG proposition brings to monetizing gas reserves to LNG at competitive prices. The FLNG contract shows solid long-term economics on an unleveraged basis. We are looking forward to building on the successful conversion of the Hilli Episeyo for Greater Tortue/Ahmeyin.”
As previously reported, BP and Kosmos expect to make the FID for the Tortue/Ahmeyin development by the end of the year.
BP has already awarded a contract for engineering, procurement, construction and installation (EPCI) for SURF and SPS scope of work to McDermott and Baker Hughes , a GE company.
The initial subsea infrastructure connects the first four wells consolidated through production pipelines leading to a floating production, storage, and offloading (FPSO) vessel. From here liquids are removed and the export gas is transported via a pipeline to the floating liquid natural gas (FLNG) hub terminal where the gas is liquefied.
In addition, TechnipFMC was earlier this week awarded a FEED contract for the FPSO unit for the Tortue/Ahmeyim field development. Under the deal, TechnipFMC will work on defining the technology and equipment scope for the project.
Offshore Energy Today Staff