Petronas, TechnipFMC Sign Limbayong SURF Contract
Malaysian oil and gas company Petronas on Tuesday confirmed the contract award to TechnipFMC for the engineering, procurement, construction, installation, and commissioning for a subsea production system, umbilical, riser, and flowline (SURF) for its Limbayong deepwater development, offshore Malaysia.
A virtual signing ceremony was held Tuesday to commemorate the award of the contract to FMC Wellhead Equipment Sdn Bhd, a subsidiary of TechnipFMC.
Petronas' Executive Vice President and Chief Executive Officer of Upstream Adif Zulkifli:"The Limbayong project is aligned with Petronas' three-pronged growth strategy to expand our resource base. We hope the project, which is PCSB’s first deepwater development undertaking in Malaysia, will give confidence and invite potential investors to collaborate further in maturing the country’s deepwater resources. Apart from monetization, Limbayong will be a platform to enhance our internal capabilities in preparing for the next deepwater projects not only in Sabah but also in other regions.”
Limbayong is an oil and non-associated gas field located 120 kilometers offshore Sabah in water depths of between 900 and 1,200 meters. The field consists of 10 deepwater wells which tie back to the project’s Floating Production Storage and Offloading unit while the subsea system is made up of SURF.
According to Petronas, the project will pave the way for the development of the surrounding prospects within 18 to 30 kilometers of its vicinity.
To remind, TechnipFMC itself first announced the Limbayong contract award back in February.
It then said that the contract was a “substantial” one, meaning that its value ranges between $250 million and $500 million.
TechnipFMC will design, manufacture, deliver and install subsea equipment including subsea trees, manifolds, umbilicals, flexible risers, flowlines, jumpers, and other associated subsea hardware for the project.
As for the FPSO, World Energy Reports' May FPSO report (paywall) shows the project is in the bidding phase, with the FPSO contract expected to be awarded in Q3 2021
Petronas in Oct 2020 issued a new tender to lease an FPSO for the Limbayong field offshore Sabah Malaysia.
Per WER, the FPSO is to be capable of producing 40,000 b/d oil, 90 mmcf/d gas, and injecting 75,000 b/d water -- and have storage for 600,000 bbls.
Local content requirements for FPSO fabrication favor local contractors. The lease will be for 12 yrs firm + 3 + 3 + 2 yr options, WER has reported.
According to WER, bids were submitted on Feb 2, 2021, with MISC, Yinson, Bumi Armada, and SIP are among the bidders.
Petronas is the field operator and has 100% interest in Limbayong.