Norway’s Sevan Marine has entered into a long term framework agreement with ExxonMobil for the provision of services and use of Sevan Marine’s cylindrical hull technology.
Sevan Marine has worked with ExxonMobil since 2015, when the company was awarded a feasibility study to explore the use of Sevan Marine’s cylindrical hull for an FLNG development.
Sevan Marine is currently working on a follow up study focusing on the hull and marine aspects of Sevan Marine’s cylindrical design. The total value of the framework agreement is subject to the calling off of individual orders.
The Norwegian company said it expected expects the first order the this agreement, involving the continuation of engineering and FLNG design work, to be called off later in February.
“We are delighted to have secured this long term frame agreement with ExxonMobil. It is a further milestone in the development of Sevan Marine, its cylindrical hull design and its engineering capabilities. We look forward to continuing to support ExxonMobil in the years to come,” says Reese McNeel, CEO of Sevan Marine ASA.
He continues:”Sevan Marine has received substantially increased interest in its unique design from several oil companies over the last months and the company believes this is a reflection of a changing market place, increased willingness of large oil companies to consider different technologies and Sevan Marine’s own business development efforts.”
Classification body ABS in 2014 granted approval in principle (AIP) for the Sevan cylindrical floating LNG (FLNG) production unit concept for offshore production, storage and transfer of LNG, LPG and condensate.
Sevan’s FLNG concept is based on the existing circular and geostationary Sevan FPSO design, which is being used in the Norwegian Sea, Central UK North Sea, Barents sea and offshore Brazil.
While the Floating LNG has been studied for years, it was not until recently that firm steps were made towards the concrete development. Shell was the first company to start with an FLNG development, aiming to bring online its giant prelude gas field offshore W. Australia.
The final investment decision for the project was made in 2011, and, according to LNG World News, the Prelude could start producing in 2017. The Prelude FLNG facility will be 488 meters long, 74 meters wide and along with its contents, will weigh around 600,000 tonnes. It will be the largest floating offshore facility in the world.
While Shell was the first to start the development, Petronas was the first to actually bring an FLNG unit to production. Petronas’ 365 meters long floating LNG unit SATU produced its first LNG from the Kanowit gas field, offshore Sarawak on December 5, 2016.
As for ExxonMobil, there are currently no sanctioned FLNG project, however, it has been said for years that Exxon might develop its Scarborough field, offshore Australia through an FLNG solution. Woodside, ExxonMobil’s new partner in the Scarborough field, recently said that the final investment decision for the field could be expected by 2020. To remind, Woodside acquired a 25 percent stake in the field from BHP Billiton in the fourth quarter of 2016.
Offshore Energy Today Staff