Thursday 21 July 2022

Liza Unity safely commissioned in industry-leading time, achieves background flare

The gas compression and injection systems on the Liza Unity Floating Production, Storage and Offloading (FPSO) vessel have been safely commissioned in around half normal industry time, achieving background flare as designed and within the 60-day period outlined in the Liza Phase 2 Environmental Permit.

Liza Unity safely commissioned in industry-leading time, achieves background flare

The start-up period involved temporary, non-routine flaring to safely commission the production and gas compression systems.

“This achievement is a testament to the team’s dedication to steady, safe operations. It also demonstrates ExxonMobil’s capabilities as an industry leader and our commitment to operational excellence,” ExxonMobil Guyana Production Manager Mike Ryan said.

The Liza Phase 2 project design eliminates routine flaring by using produced gas to power the FPSO and by reinjecting gas into the reservoir to conserve the gas and to improve oil recovery, thereby reducing emissions compared with traditional methods.

The team was also able to commission the water-injection system, which is now online and operational. The next step is to start up additional new wells in the ramp up to full production of 220,000 barrels of oil per day during the third quarter.

Meanwhile, a new, redesigned Flash Gas Compressor for the Liza Destiny FPSO has arrived in country for installation after extensive testing in Germany. The team is working towards start up in mid-July with the aim of also achieving background flare on that vessel as designed.

“We have relentlessly pursued a solution to this highly complex issue and have never lost sight of that goal. We are pleased that the newly designed machine is now offshore and the teams are methodically removing the original machine in preparation for the upgraded Flash Gas Compressor installation and startup,” the production manager indicated.

Over the last several months, the performance of the second- and third-stage flash gas compressor on the Liza Destiny has been stable and more than 96 percent of the gas produced was reinjected and/or used to power the vessel.

“Recent optimisation tests have confirmed the performance of the previously upgraded equipment and we were able to boost production to more than 140,000 barrels of oil per day, while maintaining the flare rates to a minimum,” Ryan added. “Contrary to reports, with the previously installed machine, production on the Destiny would have had to be zero in order to achieve background flare. Since start up in December 2019, we have managed production in a manner that balances the environmental commitment and economic needs of the country, in alignment with government priorities.”

ExxonMobil Guyana continues to work with the relevant government agencies to ensure compliance with regulations and responsible development of the country’s natural resources.

Project management services for Aramco's unconventional gas projects

Worley has been awarded two project management service contracts for Aramco’s unconventional gas program in North and South Arabia and Jafurah.

Under the contracts, we will provide front-end engineering design (FEED), detailed design support, project management services and construction management services.

The term of both contracts is three years with an option for an extension for a further two years. We will carry out the work from our Al-Khobar and Houston offices.

“Being part of a project that not only looks towards sustainability but also contributes to boosting regional economy demonstrates Worley’s commitment to developing future growth in the location,” said Eissa Aqeeli, Senior Vice President and Location Director, Saudi Arabia and Bahrain.

Monday 18 July 2022

The construction phase of the Greece-Bulgaria interconnector is completed

The construction phase of the gas interconnector Greece-Bulgaria has been completed. The event was celebrated at the gas measuring station near the Greek city of Komotini, where the pipeline connects to the gas transmission network of Greece and to the Trans-Adriatic pipeline. ICGB Executive Officers Teodora Georgieva and Konstantinos Karayannakos jointly announced the finalization of this stage of the IGB project, emphasizing the huge importance of the gas pipeline going way beyond the national borders of Greece and Bulgaria.

The landmark event was attended by the Prime Minister of Bulgaria Kiril Petkov, the Prime Minister of Greece Kyriakos Mitsotakis, the Ministers of Energy of the two countries - Alexander Nikolov and Kostas Skrekas, the Minister of Energy of Azerbaijan Parviz Shahbazov, high-ranking representatives from the European Commission (EC) and by the European Investment Bank (EIB) and a number of officials.

"Today we mark together the completion of a key stage in the development of the energy system in the region taking a big step forward towards a stronger, more connected and independent Europe. The end of the construction of IGB comes after a number of challenges and obstacles that we were able to overcome only thanks to the consistent efforts of the ICGB team, the company's shareholders, the political will of the governments of Bulgaria and Greece and the unequivocal support of the EC", stated the Executive Officer of ICGB from the Bulgarian side Teodora Georgieva. According to her, the upcoming commercial launch of the interconnector will guarantee secure supplies of natural gas from various sources not only for Bulgaria and Greece, but also for the entire region of South-Eastern Europe. "We have the opportunity to supply gas to the Western Balkans, to ensure supplies to Moldova and Ukraine," Georgieva emphasized.

"The IGB is being developed from the very beginning with a number of other key projects such as TAP, TANAP and the Alexandroupolis LNG terminal in mind, and this makes it an integral part of Europe's overall energy strategy and priorities. We began working on this project in a completely different international environment, but today IGB is more necessary and important than ever. The Greece-Bulgaria Interconnector is a new route for secure, diversified supplies, and will reshape the energy map of the region," said ICGB Executive Officer from the Greek side Konstantinos Karayannakos.

Since the second half of June, the interconnector has been filled with test quantities of natural gas. The route and its above-ground infrastructure have already been successfully tested including with transfer of natural gas in the direction of Stara Zagora - Komotini, and since the beginning of July the Komotini station has also been filled up with gas. The integration of the system for automated control and overall management of the gas pipeline (the so-called SCADA system) continues. The SCADA is responsible for transmitting the information and all data necessary for the safe operation of the gas pipeline through the communication network and will provide the capability to the dispatchers to monitor & control the entire facility from a remote centralized control centre. IGB is the first fully automated gas pipeline in Bulgaria.

At the beginning of July, ICGB was successfully certified as an independent transmission operator. This will allow the company to operate commercially after the launch of IGB. For this purpose, within one month, ICGB should introduce a completely new internal management structure with two-level control.The last stage before commercial operation includes the implementation of administrative procedures under the jurisdiction of a number of Bulgarian and Greek institutions, the total duration of which should be significantly reduced in order for the pipeline to become operational as soon as possible. ICGB’s management relies on active institutional support and political will in order for this goal to be successfully reached.

Monday 4 July 2022

Dnex’s Subsidiary Ping Takes Delivery Of FPSO For The Avalon Development

Dagang NeXchange Berhad (“DNeX”), via its subsidiary Ping Petroleum UK PLC (“Ping”), has taken delivery of the Sevan Hummingbird Floating Production Storage and Offloading (“FPSO”) vessel from marine energy transportation company, Teekay Corporation.

Acquisition of the FPSO is a critical milestone in the Central North Sea Avalon Development Project, which the company continues to progress after receiving a letter of “no objections” from the North Sea Transition Authority (“NSTA”) in March this year for its proposed Avalon development plans.

Ping has also been recently granted a 19-month extension by NSTA to the second term of the P2006 licence containing Avalon. This allows the company additional time to optimise and gain full regulatory approval of the Avalon Field Development Plan.

The proposed development concept includes plans to deploy the Sevan Hummingbird FPSO at the Avalon field which will be modified to facilitate electrification from an external, low-carbon source. The company is evaluating options to connect the FPSO to a dedicated floating offshore wind turbine to power the facility, minimising diesel usage and associated Greenhouse Gas emissions. The planned development allows Ping to expand and diversify its portfolio of producing assets in full compliance with the UK’s energy security and Net Zero targets.

Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, Group Managing Director of DNeX, said the acquisition of the Sevan Hummingbird FPSO is a key milestone for the Avalon oilfield and that the Group anticipates full operational deployment of the facility on Avalon by 2025.

“We have a tangible asset ready with the newly acquired Sevan Hummingbird. Our next step is to secure approval for our Field Development Plan, which will be submitted in the coming months,” he said.

First commissioned in 2008, the Sevan Hummingbird FPSO is a 60 metre-diameter facility, which has a storage capacity of 270,000 barrels of oil and is capable of producing up to 30,000 barrels of oil per day, supporting up to 47 offshore personnel.

With a total estimated ultimate recovery (“EUR”) of 23 million barrels of oil reserves over a period of 12 years, oil production from Ping’s second oilfield asset is expected to come onstream in 2025.