Bumi Armada, EnQuest Ink Firm Contract for Kraken FPSO
- Business & Finance
Malaysia-based international offshore oilfield services provider, Bumi Armada Berhad announced that it has signed a bareboat charter contract with EnQuest on 20 Dec 2013 for a Floating Production, Storage and Offloading Vessel (“FPSO”) to be deployed at the Kraken field located in the UK sector of the North Sea.
Simultaneously, Bumi Armada UK Limited, a wholly-owned subsidiary of Bumi Armada, and EnQuest Heather Limited also signed a reimbursable contract for the operations and maintenance (‘O&M’) of the Kraken FPSO. Both contracts run simultaneously for a fixed period of eight years, valued at USD 1.4 billion (equivalent to approximately RM 4.6 billion), with options for 17 annual extensions with a significant upside when the options are fully exercised.
Chief Executive Officer of Bumi Armada, Hassan Basma said, “The Kraken oil field development is one of the largest new oil fields in the UK sector of the North Sea, and amongst the largest investment announced for this sector in 2013. Approximately 140 million barrels of heavy oil (APIº 14) are expected to be extracted from the Kraken oil field, over a 25 year life. The North Sea has some 20 billion barrels of recoverable heavy oil yet to be explored. We have already commenced work on theproject on 27 Sept 2013, following the execution of the previously announced Letter of Interim Agreement (LOIA) and we look forward to working closely with our clients and value chain suppliers to successfully deliver our first North Sea FPSO to the Kraken oil field in 2016. We certainly hope that this would be the first of moreprojects to come.”
Bumi Armada will be using a recently built ice-class tanker for this FPSO conversion. The FPSO will have a storage capacity of 600,000 barrels. The FPSO will be moored by a buoy turret mooring system with a fluid transfer system designed to 390 bars pressure. A total of 16 risers will be connected to the buoy turret mooring; the turret will be one of the largest of its kind in the world.
The FPSO will also handle a peak fluid rate of 460,000 bpd* and 80,000 bpd oil production, 275,000 bpd water injection and 20 MMscf* gas handling capacities. The FPSO has a total installed power of 62 megawatts in a four by 15.5 megawatt configuration. The power plant is equipped with a triple fuel system including direct burning of heavy crude oil. The heavy oil will be produced by means of hydraulic subsea pumps (HSPs) and this type of submersible pumps have high reliability and require less maintenance compared to traditional electric submerged pumps. It is the second such application of its kind in the North Sea after the Captain field.
Bumi Armada operates in 18 countries worldwide and has a workforce of more than 3,000 spanning 40 nationalities.
December 23, 2013