Friday, March 24, 2017

TechnipFMC on for Leviathan - UPSTREAM

24 Mar 2017 10:15 GMT
Iain Esau

Contractor heavily tipped to take major pipeline installation contract

Paris and New York-listed TechnipFMC is the front-runner to secure a major pipeline installation contract for Noble Energy’s initial $3.75-billion Leviathan project off Israel.

Industry sources said the super-contractor has beaten off rival bids from Subsea 7 and Allseas, among others, to secure pole position in the eyes of the US independent.

“We think they have got Leviathan,” said a project watcher.

Another market player added: “It’s TechnipFMC for Leviathan.”

TechnipFMC’s pipelay contract is expected to cover a pair of 117-kilometre pipelines taking gas and condensate, separately, to a big fixed platform installed on Israel’s continental shelf, about 10 kilometres off the coast.
Starting out in about 1700 metres of water, these two 18-inch diameter lines are incorporated into phase one of the Leviathan development that will send gas solely to Israeli consumers.

In addition, TechnipFMC’s contract should cover the installation of two 10-kilometre pipelines – a six-inch condensate line and a 32-inch gas line – which will run between the fixed platform, located in 86 metres of water, and the shore.

It is unclear when pipelay work will take place but, with first gas due to flow in late 2019 from Leviathan, 2018 will be a key offshore installation year.

The next phase of Noble’s development is set to send gas to export markets and will require a further 117-kilometre pipeline, with a diameter of 20 inches, to be installed.

There have also been suggestions that a fourth pipeline, 14 inches in diameter, may be needed in future.

However, at this time, it is unclear if TechnipFMC’s contract will include options to cover this export-related work.

Leviathan's initial development, which includes four subsea wells, will tap 9.5 trillion cubic feet of gas out of the field's estimated in-place resource potential of 34 Tcf. Each development well is forecast to flow at rates of more than 300 million cubic feet per day, meeting the field’s initial design capacity of 1.2 billion cubic feet per day.

OneSubsea is believed to be well-placed to secure the subsea production system order, which also includes four 14-inch diameter infield flowlines and a large manifold.

The Leviathan platform, whose topsides are set to tip the scales at 22,000 tonnes, is to be built by US fabricator Kiewit Offshore Services in Ingleside, Texas with steel cutting set to start in the second half of this year.

UK-listed Wood Group revealed recently that it has started detailed engineering work on the platform.

Gas from the platform will be sent to shore via existing infrastructure and will be taken to domestic customers via Israel Natural Gas Lines’ onshore transportation grid in the northern part of the country.

Drillship Atwood Advantage is due to spud the Leviathan-7 development well within weeks.

The drillship will first drill Leviathan-7’s top hole to a depth of 2900 metres before mobilising to drill the Leviathan-5 development well to a depth of 5200 metres. It will then go back to re-enter Leviathan-7 and drill down to a depth of 5100 metres. According to Noble’s project partner Delek Group, drilling of the two wells is set to take around seven months with a total budget of about $71 million, down from the original estimate of $77 million.

First gas from Leviathan is expected to flow in the fourth quarter of 2019.

If further gas sales are finalised, production from Leviathan could hit 2.1 Bcfd.

Noble has a 39.75% working interest in the asset with local partners Delek Drilling on 22.67%, Avner Oil on 22.67% and Ratio Oil on 15%.