Norwegian cylindrical floating production unit designer Sevan Marine won a long-term framework agreement with US supermajor ExxonMobil.
Sevan Marine has been working with ExxonMobil since 2015, when it was given a feasibility study to explore the use of a cylindrical hull design for a floating LNG development.
Sevan Marine is now working on a follow-up study focusing on the hull and marine aspects of the design for this application.
Reese McNeel, CEO of Sevan Marine, says: “Sevan Marine has received substantially increased interest in its unique design from several oil companies over the last months and the company believes this is a reflection of a changing market place, increased willingness of large oil companies to consider different technologies and Sevan Marine’s own business development efforts.”
ExxonMobil and Sevan have worked together in the past on an ice-class cylindrical drilling unit. ExxonMobil is also operator of the Scarborough gas field, 200km offshore western Australia, in the Carnarvon Basin in 900m water depth. ExxonMobil has said floating LNG is the lead development option for Scarborough, one of the remotest discoveries in the Carnarvon Basin. However, previous references to project have suggested it could be a larger project than Shell's massive Prelude FLNG unit.
The project has been deferred over the years, due to challenges around the development, including its remoteness. But, earlier this year, partner in the project Woodside said Scarborough could move into front end engineering and design this year.
Sevan says the framework between it and ExxonMobil could see an order for continuation of engineering and FLNG design work made later in February.
Sevan has long seen its cylindrical hull as a viable solution for floating LNG projects, because of its stable characteristics. The firm also acquired the proprietary HiLoad technology for offshore loading of LNG, to compliment its designs.
According to a 2016 report by Oxford Economics FLNG offers many advantages for the development of remote offshore gas reserves which are often referred to as ‘stranded’ gas.
"FLNG production costs should be lower than the equivalent onshore development by eliminating the cost of the pipeline to shore and the need for a jetty and, where required, a breakwater," the report says. "Further cost reductions will apply where onshore construction costs are high e.g. Australia. A recent demonstration of this is the decision by Woodside to develop the Browse field in Australia as an FLNG and not an onshore plant, albeit this has now been shelved due to current low energy prices. Similarly ENI is considering FLNG for offshore Mozambique as an early production system due to expected high construction cost of an onshore LNG plant.
"In addition to lower cost, FLNG offers a much higher confidence in meeting the delivery schedule and production date by using a shipyard rather than onshore construction in remote and challenging areas which frequently experience major delays."
Read more
Woodside sees Scarborough FEED in 2017
Image: The Sevan Voyageur.
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