Chevron's multi-billion dollar deepwater west of Shetland Rosebank development appears to be edging closer back to fruition after a contract was awarded for the floating production, storage and offloading (FPSO) vessel turret.
The Rosebank project was on track until 2013, when partner OMV revealed operator Chevron was re-thinking the project to reduce costs.
It is understood Chevron has now simplified the topsides processing of the 295m-long FPSO, reduced the complexity of the turret and mooring system, and subsurface work has seen an improved reservoir management plan created, reducing the number of development wells needed and improving recovery rates.
Today, Bluewater Energy Services revealed it has won a contract from Hyundai Heavy Industries (HHI) for the engineering, procurement, construction and integration (EPCI) of the FPSO's turret and mooring system - expected to be one of the world's largest turret systems when complete - signally the project is once again moving forward.
Rosebank, discovered in 2004, in blocks 213/26 and 213/27, 175km nortwest of Shetland in 1100m water depth, is estimated to contain 240 MMboe recoverable. It will be a major project for the UK North Sea when it goes ahead, accounting for 36% of floating platform spending in northwest Europe in 2016-2020, according to Infield Systems, producing some 100,000 b/d and 80 MMscf/d.
Chevron today said: “The joint venture participants have made significant progress in optimizing the Rosebank facilities and have identified changes to the scope of the facilities which we expect to deliver a reduction in development costs and a consequent improvement in project value.
"We are now conducting additional engineering work and supply chain activities to improve scope definition, validate the improvements identified and produce a detailed program of work. The JV is very encouraged by the progress made to date and we will continue to pursue ways to further improve project value and reduce uncertainties as we move forward through the FEED phase.”
The Rosebank vessel, which HHI said would be complete by November 2016, is due to be the deepest moored facility on the UK Continental Shelf.
Bluewater says the Rosebank turret and mooring system, which will permanently anchor the FPSO offshore and allow it to weathervane, will be one of the largest turret and mooring systems ever designed and built, being about 80m-high, with a process manifold/turntable of about 34m-diameter. In comparison, Shell's Prelude FLNG vessel turret - the largest in the world - is 100m high.
Bluewater Energy Services will supply the turret and mooring system for integration at the construction yard of HHI in Ulsan, South Korea, where the Rosebank FPSO will be fabricated.
Other contracts already issued for Rosebank include a $500 million contract for subsea equipment with OneSubsea.
The project still requires UK government approval and the project co-venturers approving the final investment decision.
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