Sembcorp Marine clinches Karish and Tanin FPSO award
- Business & Finance
Sembcorp Marine has secured a contract from TechnipFMC to undertake the engineering, procurement and construction of hull and living quarters for a newbuild floating production, storage and offloading vessel (FPSO) for Energean’s Karish and Tanin development off Israel.
The contract was awarded to SembMarine’s subsidiary, Sembcorp Marine Rigs & Floaters. It includes fabrication and integration of various topside modules, as well as installation of owner-furnished equipment, SembMarine informed on Wednesday.
The FPSO’s hull is approximately 227m long and 50m wide, with a total oil storage capacity of 800,000bbls and gas production capacity of 8bcm (billion cubic metres) per annum.
Scheduled for completion in the fourth quarter of 2020, the FPSO will be deployed at the Energean-operated Karish and Tanin deepwater field developments in the Eastern Mediterranean, approximately 90km offshore Israel.
TechnipFMC was awarded a $1.36 billion worth contract for the construction of the FPSO for the Karish and Tanin deepwater development in early March at the same time as Energean signed an agreement with four international banks for financing the development, which provided further momentum for Energean to make a Final Investment Decision (FID) for the project.
Energean made the FID to proceed with the $1.6 billion Karish & Tanin Development Project last week. The Greek company said it would use $405 million of the $460 million raised from the recent IPO to fund the company’s 70% share in the project, while the remaining 30% would be funded by Kerogen Capital, its partner in the project.
Karish and Tanin were discovered in 2013 and 2011 respectively and contain 2C gas resources of 2.4TCF. Energean is intending to fast-track the development of the Karish field to support the Israeli Government in bringing cheaper gas to the market by 2020. The development of the Tanin field will follow thereafter.
Offshore Energy Today Staff