Italian offshore giant Saipem has awarded China Merchants Heavy Industry (CMHI) a major contract for the delivery of a floating production, storage and offloading (FPSO) vessel that will be deployed at French energy giant TotalEnergies’ Kaminho deepwater project (formerly the Cameia-Golfinho project), located in Angolan waters, in Block 20/11, the newspaper Upstream reported on July 18th.
Upstream reported that in April of this year TotalEnergies and Saipem held a meeting with CMHI to kick off the Kaminho project, which is to be equipped with an FPSO.
It is understood that the Kaminho deepwater project is being developed by TotalEnergies and its partners Petronas and Sonangol, with the three developers holding a 40 percent, 40 percent and 20 percent interest in the project respectively. A final investment decision (FID) was made on May 21, 2024 for the project.
On the same day that the final investment decision was reached (May 21), Saipem announced the signing of three offshore contracts with TotalEnergies E&P Angola, a subsidiary of TotalEnergies, for the Kaminho project with a total value of $3.7 billion. One of the contracts covers the engineering, procurement, construction, transportation and commissioning of the Kaminho FPSO.
The other two contracts are for the operation and maintenance (O&M) of the Kaminho FPSO for a period of 12 years with an option to extend for 8 years; engineering, procurement, supply, construction, installation, commissioning and assistance with commissioning and start-up of subsea, umbilicals, risers and flowlines (SURF) packages.
The Kaminho project, which is the first large-scale deepwater development project in the Kwanza Basin, will develop the Cameia and Golfinho fields 100 kilometers off the Angolan coast at a depth of 1,700 meters, with a total investment of $6 billion, and is expected to go into operation in 2028, according to the statement. The project is equipped with an FPSO converted from a Very Large Crude Carrier (VLCC) with a crude oil handling capacity of approximately 70,000 bbl/d. The FPSO will be connected to subsea wells and pipeline networks, and will be equipped with a combined-cycle gas turbine for power generation. Based on economic assumptions, production from the Cameia and Golfinho fields will reach its limit in 2059.
In recent times, Chinese enterprises have been awarded a number of offshore contracts in the global offshore market.
On July 18,China Offshore Oil Engineering Co., Ltd. (COOEC) announced that it had signed a contract with South Korea’s POSCO International Corporation for the development of Phase IV of the SHWE gas field located in Myanmar waters.COOEC, as the general contractor, will undertake the design, procurement, marine transportation installation and pre-commissioning general contracting work, with a contract value of about $523 million (about RMB 3.8 billion).
On July 10, CIMC Raffles, a subsidiary of CIMC Group, announced that it has signed an EPC order for the hulls of Petrobras’ P-84 and P-85 FPSOs with Singaporean offshore giant Seatrium (formerly Sembcorp Marine). CIMC Raffles will be responsible for the EPC of the hulls, accommodation buildings and some modules of the two FPSOs, which will start construction in the first quarter of 2025 and are scheduled to be delivered in 2029, and will be classed by ABS and deployed in the Atapu and Sépia fields, respectively.
On June 20, Genting Oil & Gas Limited (GOGL), through its two subsidiaries, PT Layar Nusantara Gas and Genting Oil &Gas Sdn Bhd, signed an EPCIC contract for a floating liquefied natural gas (FLNG) facility valued at $1 billion (approximately RMB 7.26 billion) with Wison New Energies. The Floating Liquefied Natural Gas (FLNG) EPCIC contract, valued at $1 billion (approximately RMB 7.26 billion), is expected to last for 27 months.
