Oil major BP has selected McDermott and Baker Hughes, a GE company, for engineering, procurement, construction and installation (EPCI) for SURF and SPS scope of work of BP’s Tortue/Ahmeyim field development. McDermott and Baker Hughes on Monday announced the selection of front-end engineering design (FEED) studies in advance of the substantial EPCI contract for the Tortue/Ahmeyim field development, a major gas project located on the maritime border of Mauritania and Senegal.During this initial engineering phase, McDermott said it will work on defining the subsea umbilicals, risers and flowlines (SURF) scope for the project, while BHGE will focus on the subsea production system (SPS) scope. The FEED is scheduled to begin and complete this year.The agreement contains a mechanism to allow transition of the contract to a lump sum EPCI contract at a later date. McDermott will work jointly with BHGE to provide an optimized, integrated solution.Scott Munro, Vice President of Americas, Europe and Africa, said: “Building on our relationship with BP on Angelin, McDermott’s focus on modernized project management and a collaborative approach will create a fully inclusive, open and transparent working environment for BP and major partners to ensure success. Our integrated approach with BHGE will bring the best total solution to BP that we believe will provide schedule and budget certainty.”Graham Gillies, Vice President, Subsea Production Systems and Subsea Services at BHGE, said: “We will be working closely with BP and McDermott on this strategically-important gas project, that will benefit from our extensive knowledge of deep water, large bore gas technologies and FEED capabilities.”“Increasingly, industry players are looking for commercially-innovative business models and integrated offerings that help reduce costs, while increasing efficiency and productivity. This is an excellent example of how the industry has evolved its approach, with global operators now embracing the benefits of early engagement with OEMs and service providers.”McDermott expects to use the Project Lifecycle Management (PLM) module from its new digital platform Gemini XD to deliver advanced technology through project execution and the development of a digital twin of the complete system.The project will also benefit from BHGE’s RealTrack digital collaboration tool which provides live, real-time reporting of schedule progress, document status and issues management for more efficient project execution. RealTrack is designed to help customers optimize their operations, respond quickly to arising issues and plan effectively for changing requirements as projects evolve.Teams from McDermott and BHGE will perform the project management and FEED work from McDermott’s Epsom facility in the United Kingdom.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.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.
Oil and gas company Hague and London Oil (HALO) has made a deal to acquire several assets in the Dutch & UK sectors of the North Sea from ONE-Dyas (OND).JDA and Sillimanite assets map; Source: ONE-DyasAccording to HALO’s statement on Wednesday, these interests consist of 7.9% of the Sillimanite Development Unit, straddling the Dutch & UK median line in the North Sea; 0.85% of the Joint Development Area (JDA); 2.34% of the Western Gas Transmission (WGT) pipeline system, including the onshore Den Helder gas processing facilities; and, 4.167% net profit interests (NPl) on blocks in and adjacent to the JDA, from OND.HALO said it would pay a purchase price to OND of €8.85 million ($9.7M) paid in cash at the closing of the sales purchase agreement (SPA), subject to working capital adjustments between the effective date and closing of the SPA.The company said that the completion amount would be funded through existing cash resources of the company, structured finance associated with the existing and expanded portfolio or secured lending against hydrocarbon gas volumes within HALO’s portfolio.The proposed acquisition will be subject to all requisite third party, regulatory and government (eg. Netherlands & UK) approvals or waivers.The effective date of the proposed transaction will be January 1, 2019, with the completion amount paid at the time of closing. The proposed acquisition will increase HALO’s interests in the JDA and WGT to 10.80% and 11.22% respectively and a new entry with 7.9% of the Sillimanite Development Unit comprised of 11.73% Block 44/19a (UK (includes the Sillimanite West Discovery)) and 7.037% Block D12b (Netherlands).Additionally, the proposed acquisition removes a financial burden on the company’s existing JDA stake plus adding NPI on other participants in: K8, L13 and Partial Block L12. Once completed, the proposed transaction would immediately add ca. 2 mmboe of reserves and an estimated 800-1,000 boepd of production by 4Q 20.Andrew Cochran, Chairman & Interim CEO, commented: “This proposed acquisition represents a unique opportunity to add to the existing portfolio as well as expanding it within HALO’s established ‘core’ areas, including transportation & infrastructure. Sillimanite is already under development and would add materially to the company’s production profile next year as well as adding reserves immediately upon a successful closing; also, the proposed acquisition would establish HALO’s first production in the UK ahead of the Greater Pegasus Area development project.”Previously, HALO bought Tullow Oil’s gas producing assets in the Dutch North Sea through an acquisition which was completed in November 2017. The acquisition comprised interests in 12 licenses on the Dutch Continental Shelf (DCS) in the Northern Area and a suite of interests in the Joint Development Area in the western part of the DCS. The acreage spreads over 2,878 sq km which generated total net production of 2,900 boepd in 2016.In September 2018, HALO entered into an agreement for the conditional acquisition of the entire share capital of Third Energy Offshore whose portfolio includes interests in the Greater Pegasus Area (45%), and the high impact Andromeda prospect in the Southern North Sea.Spotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email. Also, if you’re interested in showcasing your company, product or technology on Offshore Energy Today, please contact us via our advertising form where you can also see our media kit.