New Age hands out Etinde FEED award to TechnipFMC
- Business & Finance
The article has been amended after new details came to light.
Oil and gas company New Age has reportedly awarded a contract to TechnipFMC to appoint it as lead FEED (Front End Engineering Design) contractor for the development of the offshore IM gas condensate field at Etinde, Cameroon.
New Age is the operator of the Etinde field with a 37.5% working interest. Bowleven and Lukoil are partners in the project with a 25% and 37.5% working interest, respectively.
Bowleven said on Wednesday that, under the terms of the award, TechnipFMC would work alongside and report to the integrated JV partner Operations team to lead the onshore and offshore elements of the FEED program in respect of the proposed development.
The reservoir engineering and sub-surface development aspects of the wider FEED process will be undertaken by the operator, Bowleven added.
The initial phase of the development concept proposed by the JV partners comprises an onshore gas processing, storage and export facility linked to an unmanned well head platform with associated pipeline infrastructure.
Eli Chahin, Chief Executive Officer of Bowleven plc, said: “The award of a lead FEED contractor is a significant milestone for the JV partners, as we look to make a final investment decision on Etinde in 2020. We are excited about our plans for the initial phase of the proposed development and look forward to working with Technip to finalize our development concept for the field over the coming months.”
Update: NewAge denies the award of FEED contract
Following Bowleven’s statement on Wednesday, Offshore Energy Today has received information that the announcement was not accurate and that the FEED contract was still not awarded.
Offshore Energy Today reached out to NewAge seeking confirmation of these reports.
NewAge confirmed the announcement was not accurate and that the FEED contract “has not been awarded at this time.”
When asked about the timing of the award and the runner-ups for the Etinde prize, NewAge refrained from providing more details “given the tender is still live.”
Bowleven still has not responded to our queries as to why its announcement claimed the FEED contract had been awarded contrary to the operator’s claims.
It is also worth reminding that, in February 2020, New Age and Victoria Oil & Gas signed a non-binding Letter of Intent for the supply of gas from the Etinde field, offshore Cameroon. Under the terms of the LOI, Victoria and New Age would seek to enter into a gas supply agreement. The LOI envisages that New Age will supply processed gas to Gaz du Cameroun S.A. (GDC), a subsidiary of Victoria Oil & Gas, at Limbe. GDC would then transport the gas to Douala.
The Etinde Permit (former Block 7) lies in shallow water in the Rio del Rey Basin, offshore Cameroon, and comprises four proven reservoir intervals within the Pliocene and Miocene formations.
Following the successful 2018 appraisal campaign, the joint venture has moved the Etinde project to a development planning phase. Several development screening concept studies are now underway to optimize the development of the Etinde field.
Offshore Energy Today Staff
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