The Next Frontier inthe FPSO Market

For many decades now, the oil industry has been thriving on producing oil from offshore locations. Today, with the world’s increasing need for new energy sources, new processing and storage facilities continue to be on the rise. These facilities are referred to as FPSO (Floating

Production Storage and Offloading).

FPSO has enabled many companies to explore and, quite literally, dig deep into uncharted territory. With this capability, FPSO has also made way for new destinations, from which oil and gas can be processed. One of them is Africa.

Home of the Largest

The world’s second largest continent, Africa, is home to a quarter of the 186 FPSOs operating in the world today. 10% of these are located in the western part of Africa, namely, Ghana, Mauritania, Cote D’ivore and Nigeria with 3 FPSOs in its territory, including the world’s largest, FPSO Egina. Owned by Total, the Egina is based in Egina Field, 150 km off the coast of Nigeria.

Egina FPSO was developed by Total Upstream Nigeria in partnership with CNOOC, Sapetro and Petrobras. The Egina came on stream in January 2019. It is the third and largest deep offshore development of Total in Nigeria, projected to produce up to 200,000 barrels per day at its peak.

Digging Deep for More Sources

While it is famous for being the world’s biggest FPSO, Egina is not the only facility in Africa that is strongly followed by the energy industry.

To date, interest and investments continue in various locations in the continent. In West and South Africa, offshore deep and ultra-deep space are steadily progressing as more explorers and producers expand their operations. Numerous major projects are in the pipeline or have been unveiled awaiting resource appraisal and development.

Total is proud to deliver a project of this size underthe initial budget and to contribute to the development

of Nigeria’s oil and gas sector by generating employmentas well as building industrial capability. Egina will significantly

boost the Group’s production and cash flow from 2019 onwards,and benefit from our strong cost reduction efforts in Nigeriawhere we have reduced our operating costs by 40% over thelast four years. Furthermore, some upside potential nearbyremains to be developed and we are studying in particular

Preowei discovery tie-back to the Egina FPSO.- Arnaud Breuillac, Total President for Exploration & Production -

Notable FPSO Projects in AfricaLiza 2, 3 and 4Location: Offshore GuyanaEstimated barrels of oil: 3.2 billion

As of July 2019, following completion, ExxonMobil’s Liza 2 has begun its voyage to Guyana from Keppel Yard in Singapore. The vessel was constructed for a period of 20 months by SBM Offshore and is dubbed as Liza Destiny. It will be followed by another FPSO currently in construction – the Liza Unity.

“We are happy to welcome Liza Destiny FPSO into SBM Offshore’s fleet.We know her well, having been involved from the initial phases of her design

and construction, ensuring that the FPSO benefits from the know-how ofover 320 years of cumulative operations experience. We look forward

to cooperating closely with our client, ExxonMobil, to ensure thatthe start-up is a success, in line with their plan.”

- Oivind Tangen, Managing Director – Operations, SBM Offshore

The Liza Destiny is projected to produce up to 120,000 barrels of oil per day. It will have associated gas treatment capacity of circa 170 million cubic feet per day and water injection capacity of circa 200,000 barrels per day. The converted VLCC FPSO will be spread moored in water depth of 1,525 meters and will be able to store 1.6 million barrels of crude oil.

Greater Tortue AhmeyimLocation: SenegalEstimated barrels of oil: 1 billion

Located at the Mauritania and Senegal maritime border, Tortue will produce gas from an ultra-deep-water subsea system and mid-water floating production, storage and offloading vessel (FPSO). Following this, the gas will then be transferred to a FLNG (Floating Liquefied Natural Gas) facility.

Other FPSO Projects in Nigeria

Name: Egina FPSOField: EginaProduction: OilStatus: ConstructionOperator: TotalCountry: NigeriaAward Status: AwardedForecast Award: 19/3/2013Forecast First Oil: 17/10/2018

Name: Bonga Southwest/AparoField: Bonga Southwest/Aparo Production: OilStatus: PlannedOperator: ShellCountry: NigeriaAward Status: PlannedForecast Award: 12/12/2022Forecast First Oil: 2/2/2025

Name: Anyala/MaduField: AnyalaProduction: OilStatus: TenderingOperator: First ExplorationCountry: NigeriaAward Status: TenderingForecast Award: 1/1/2018Forecast First Oil: 29/6/2020

Name: OwowoField: OwowoProduction: OilStatus: PossibleOperator: ExxonMobilCountry: NigeriaAward Status: PossibleForecast Award: 7/7/2023Forecast First Oil: 29/6/2026

Name: Nsiko and UgeField: NsikoProduction: OilStatus: PossibleOperator: ExxonMobilCountry: NigeriaAward Status:PossibleForecast Award: 7/7/2021Forecast First Oil: 29/6/2024

Name: Bonga NorthField: Bonga NorthProduction: OilStatus: PlannedOperator: ShellCountry: NigeriaAward Status: PlannedForecast Award: 12/12/2023Forecast First Oil: 31/12/2026

Name: Chota/BoliaField: ChotaProduction: OilStatus: PossibleOperator: Oando Energy ServicesCountry: NigeriaAward Status: PossibleForecast Award: 1/1/2028Forecast First Oil: 31/12/2030

Name: H-BlockField: HDProduction: OilStatus: PossibleOperator: ShellCountry: NigeriaAward Status: PossibleForecast Award: 1/1/2028Forecast First Oil: 30/11/2030

Name: Bosi Field: BosiProduction: OilStatus: PossibleOperator: ExxonMobilCountry: NigeriaAward Status: PossibleForecast Award: 12/12/2023Forecast First Oil: 31/12/2027

Name: Etan/ZabazabaField: EtanProduction: OilStatus: PlannedOperator: EniCountry: NigeriaAward Status: PlannedForecast Award: 1/1/2024Forecast First Oil: 12/12/2027

Other FPSO Projects in Angola

Name: Kaombo NorteField: GengibreProduction: OilStatus: ConstructionOperator: TotalCountry: AngolaAward Status: AwardedForecast Award: 16/4/2014Forecast First Oil: 6/4/2018

Name: NegageField: NegageProduction: OilStatus: PossibleOperator: ChevronCountry: AngolaAward Status: PossibleForecast Award: 1/1/2024Forecast First Oil: 31/12/2027

Name: Kaombo SulField: MostardaProduction: OilStatus: ConstructionOperator: TotalCountry: AngolaAward Status: AwardedForecast Award: 16/4/2014Forecast First Oil: 2/2/2019

Name: Cameia Mound DevelopmentField: CameiaProduction: OilStatus: PlannedOperator: SonangolCountry: AngolaAward Status: PlannedForecast Award: 12/12/2024Forecast First Oil: 1/1/2027

Name: Blk 31 Phase II/SE Blk 31/PAJDField: PalasProduction: OilStatus: PlannedOperator: BPCountry: AngolaAward Status: PlannedForecast Award: 1/1/2023Forecast First Oil: 16/7/2025

Name: Blk 31 Phase III/Blk 31 MIDField: CeresProduction: OilStatus: PossibleOperator: TotalCountry: AngolaAward Status: PossibleForecast Award: 12/12/2025Forecast First Oil: 30/11/2028

Name: ChissongaField: ChissongaProduction: OilStatus: PlannedOperator: Maersk OilCountry: AngolaAward Status: PlannedForecast Award: 1/1/2023Forecast First Oil: 1/1/2026

Name: Greater Orca Lontra DevelopmentField: OrcaProduction: OilStatus: PlannedOperator: SonangolCountry: AngolaAward Status: PlannedForecast Award: 1/1/2023Forecast First Oil: 16/7/2026

Name: LucapaField: LucapaProduction: OilStatus: PlannedOperator: ChevronCountry: AngolaAward Status: PlannedForecast Award: 1/1/2024Forecast First Oil: 12/12/2028

Other FPSO Projects in Other African Countries

Name: Yombo replacement Field: YomboProduction: OilStatus: ConstructionOperator: PerencoCountry: CongoAward Status: AwardedForecast Award: 29/6/2017Forecast First Oil: 27/9/2018

Name: SaphirField: SaphirProduction: OilStatus: PossibleOperator: TotalCountry: Cote d’IvoireAward Status: PossibleForecast Award: 12/12/2025Forecast First Oil: 30/11/2030

Name: BW Adolo (ex Azurite)Field: DussafuProduction: OilStatus: ConstructionOperator: BW EnergyCountry: GabonAward Status: AwardedForecast Award: 5/5/2018Forecast First Oil: 12/12/2018

Name: MTPSField: Andromede Production: OilStatus: PossibleOperator: TotalCountry: Congo Award Status: PossibleForecast Award: 1/1/2026Forecast First Oil: 31/12/2030

Name: Sangomar Offshore DeepField: SNE-1Production: OilStatus: TenderingOperator: WoodsideCountry: SenegalAward Status: TenderingForecast Award: 12/12/2019Forecast First Oil: 12/12/2022

Name: Venus (ex-Green Sand)Field: Venus (ex-Green Sand P-2)Production: OilStatus: PlannedOperator: GEPetrolCountry: Equatorial GuineaAward Status: PlannedForecast Award: 1/1/2026Forecast First Oil: 31/12/2028

Name: Greater Tortue Field: AhmeyimProduction: GasStatus: PlannedOperator: BPCountry: MauritaniaAward Status: PlannedForecast Award: 12/12/2020Forecast First Oil: 16/7/2026

Name: IbhubesiField: IbhubesiProduction: GasStatus: PossibleOperator: Sunbird EnergyCountry: South AfricaAward Status: PossibleForecast Award: 12/12/2023Forecast First Oil: 31/12/2025

Name: KuduField: KuduProduction: GasStatus: PlannedOperator: NAMCORCountry: NamibiaAward Status: PlannedForecast Award: 1/1/2024Forecast First Oil: 12/12/2028

Name: Deepwater TanoField: Pecan-1Production: OilStatus: PossibleOperator: Aker EnergyCountry: GhanaAward Status: PossibleForecast Award: 12/12/2020Forecast First Oil: 16/7/2023

Why Choose Africa?

Here are 3 major reasons.

Government Support

Among many African nations, there is a strong consensus that facilitating offshore exploration is a positive step towards progress in the energy sector and the overall economy, in general. It is no coincidence that the growth of Africa’s offshore exploration and production activities is happening while governments are making deliberate efforts to provide incentives and attract investments in the region. As a result, a growing list of international oil and gas companies are expressing interest and showing signs of commitment. In addition, Africa also presents itself as a great alternative to replace maturing onshore production sites in countries such as South Sudan, Nigeria and Egypt.

Investors Support

As more projects continue to come into Africa, investors couldn’t be far behind. The gaining traction in deep and ultra-deep space has paved the way for more explorers and producers to ramp up their operations, especially in West and Southern Africa where we see a lot of activities. Given this trajectory, it will not be a surprise if even more investors continue to flock in na dmake significant investments in this region.

Natural Water and Wind Movement

Mild, predominant winds and currents remain constant throughout the year allowing FPSOs to be safely and permanently anchored fore and aft. The configuration, called spread mooring, permits nearly any number of risers to be brought aboard the vessel at the starboard and port amidships, allowing flexible production rates and well numbers which are necessary to frontier area development projects.

Digitisation: The Future of FPSOs

Unlike many other sectors, the pace of digitisation in the oil and gas sector is still leaves much to be desired. While it is true that digitisation of operational procedures enhance efficiency and save costs, the culture and the standard operating norms in the oil and gas sector continue to be a hindrance in attaining optimum operational efficiency.

Moving forward, it will be necessary for FPSOs to aggressively incorporate digitisation in their core procedures, embedding it in areas such as big data, analytics, sensors and more. The ability to automate highly repetitive tasks will also be a key differentiating advantage.

Now that monitoring technologies offer better value proposition and cost-effectiveness than what they were few years ago, justifying this investment will be a more feasible endeavour. The fact that digitisation of FPSOs help prolong its shelf life, allow companies to have a better grasp of the vessel’s service life and measure vessel fatigue make digitisation even more valuable now more than ever.

Disclaimer: Please note that we do all we can to ensure accuracy and timeliness of the information presented herein but errors may still understandably occur in some cases. If you believe that a serious inaccuracy has been made, please email enquiry@iqpc.com.sg. This article is provided for information purposes only. IQPC accepts no responsibility whatsoever for any direct or indirect losses arising from the use of this report or its contents.

Sources:https://www.academia.edu/25108024/The_FPSO_Development_Timeline https://www.total.com/en/media/news/press-releases/nigeria-total-starts-production-giant-egina-field https://www.oilandgasiq.com/fpso-flng/news/fpso-futures-spotlight-on-africa http://www.businesskorea.co.kr/news/articleView.html?idxno=24640 https://www.oilandgasiq.com/fpso-flng/articles/guide-to-floating-production-storage-and-offloading-fpso https://www.total.com/en/energy-expertise/projects/oil-gas/deep-offshore/kaombo-ultra-deepwater-offshore-project?gclid=EAIaIQobChMI2MiJuejs4wIVTNOyCh0LywhPEAAYASAAEgJrQPD_BwE&gclsrc=aw.ds&xtor=SEC-13-GOO-[RU_Total.com_Projects_Oil-Gas_Kaombo]-[229935378457]-S-[%2Bkaombo]https://www.oedigital.com/news/461170-africa-s-fpso-market-destined-for-growth https://www.sbmoffshore.com/news/liza-destiny-fpso-begins-her-voyage-to-guyana/

Join both local and international players as they come together in solution-oriented discussions on commercialising FPSO projects in Africa’s deep and ultra-deep water seas at the FPSO Africa Congress 2019 happening on 3-4 December 2019. For more information, visit www.fpsonetwork.com/events-fpso-africa-congress.