Daewoo Posco to Pre-qualify Players for Shwe FEED
Monday 17 October 2016
South Korean oil company Daewoo Posco will soon hit the market with pre-qualification documents covering a front-end engineering and design contract for the second phase of its flagship Shwe gas project, 70 kilometres off Myanmar’s Rakhine-Arakan coast.
The second phase of the Shwe project involves development of the Mya South and Shwe Phyu fields as subsea satellites linked to the phase-one central processing platform.
Daewoo is set to send letters next month to contractors to test their interest in participating in an upcoming tender process that will involve a FEED contest leading to the award of a significant engineering, procurement, construction and installation contract.
The FEED work and single EPCI contract will cover a subsea production system (SPS) and an umbilical, riser and flowline system for each of the two fields.
Invitations to bid for the FEED contract will likely be issued in December or the first quarter of 2017 with contract award expected in the second quarter of next year.
One source suggested that Daewoo may short-list up to three contractors to take part in a paid, competitive FEED contest, eventually selecting one of them for the combined, turnkey SPS-SURF contract.
It is understood that the tender process is set to attract bids from a number of consortia.
Industry sources said the bidders would likely team up as Subsea 7-OneSubsea, Technip-FMC, Saipem-Aker Solutions, McDermott-GE, while Malaysia’s SapuraKencana-TL Offshore and EMAS of Singapore could possibly team up with one of the approved SPS vendors.
Genesis Oil & Gas carried out feasibility studies into Shwe’s first phase and has completed conceptual engineering for the second phase.
Shwe’s phase-one CPP currently hosts 11 development wells with additional output coming from the Mya North subsea satellite, which has four wells.
At Mya South, one subsea manifold will house three production wells in about 560 metres of water.
A similar scheme is being worked out for Shwe Phyu, which is located in much shallower waters, just 95 metres deep.
Mya South’s manifold, which will have one spare slot, will be linked by a 12-inch, 20-kilometre pipeline to the central processing platform.
Sources said Daewoo is also considering future phased developments at Shwe to include a compression platform bridge-linked to the existing CPP although these are not on its immediate agenda.
Daewoo has previously said it will invest $3.2 billion to develop its Myanmar gas fields.
It has a 30-year contract with China National Petroleum Corporation to provide up to 500 million cubic feet per day of gas. Shwe’s gas is exported via a 110-kilometre pipeline to an onshore terminal at Kyauk Phyu, from where it is transported to China via a 2800-kilometre pipeline.
First production from Shwe started in July 2013, while Mya-North began producing one month later.
Daewoo has a 51% stake in Shwe with Korea Gas holding 8.5%, India’s Gail on 8.5%, state-owned MOGE on 15% and India’s ONGC Videsh on 17%.