Top projects by expense for 2016

OE Staff

January 1, 2016

No. 1 – Chevron’s Big Foot

Chevron’s Big Foot platform being towed to Walker Ridge. Photo from Chevron.

Coming in at No. 1 on Infield System’s list of highest capex projects for 2016 is the Chevron-operated Big Foot field in the Walker Ridge block 29, US Gulf of Mexico. According to Infield Systems data, the supermajor will spend US$653 million on the problem beset field in 2016.

Strong loop currents in the Gulf of plagued the field, which originally delayed Chevron from towing the platform to the site. Then, in June, work to install the Big Foot tension leg platform (TLP) was suspended after nine of the 16 tendons lost buoyancy, in an incident that is still under investigation. As of August, Chevron said it does not expect to achieve first production from Big Foot until 2018.

The seven remaining tendons have since been uninstalled and the TLP has been towed back to Kiewit Offshore Services’ facility in Ingleside, Texas.

The Big Foot field, which Chevron operates with 60% interest, along with partners Statoil (27.5%) and Marubeni Oil & Gas (12.5%), was discovered in 2006, and is estimated to contain total recoverable resources of approximately 200 MMboe. It is the sixth deepwater facility in the Gulf of Mexico for Chevron.

Infield System’s top 10 highest capex projects
currently under development in 2016

No. 3 – ExxonMobil’s Hebron

In July 2014, the Hebron GBS was towed to the Bull Arm deepwater construction site. Photo from ExxonMobil Canada Properties.

Coming in at No. 3 on the list is the ExxonMobil-operated Hebron heavy oil project off Newfoundland and Labrador, Canada. Infield Systems says ExxonMobil and its partners will spend some $538 million on the project in 2016.

First oil is set for 2017. The field, which sits in the Jeanne d’Arc basin about 350km southeast of St. John’s, was discovered in 1980 and will become the fourth producing field in the province. It is estimated more than 700 MMbbl of recoverable resources will be produced from the field.

Hebron will be produced through a gravity based structure (GBS), with 150,000b/d production capacity from 52 well slots, and about 1.2 MMbo storage capacity.

The GBS has been towed to the Big Arm deepwater construction site to be completed before it is installed at the Hebron field.

No. 5 – Murphy’s Rotan

First steel was cut for Petronas’ FLNG-2 facility in Geoje, South Korea in June. Photo from Petronas.

Ranking at No. 5 is the Murphy Oil-operated Rotan gas field in block H of the Sabah basin, offshore Malaysia. Infield Systems’ data shows that Murphy will spend $382 million on the project, which is on track for achieving first gas in 2018. The field, estimated to hold reserves of around 950 Bcf, will be produced through a Petronas floating liquefied natural gas facility, the PFLNG-2.

In early November last year, Petronas announced that the keel for the PFLNG-2 facility had been laid in Geoje Island, South Korea. The facility is being built by a consortium of JGC Group and Samsung Heavy Industries. In June 2015, Petronas held a steel cutting ceremony for the facility at SHI’s yard. The Malaysian oil major said the keel laying signifies the formal recognition of the start of the group’s mega construction phase of the PFLNG2 with a collective weight of 134,000-tonne. In addition, Aker Solutions has been chosen to deliver a subsea production system for the field. The award will include four subsea wells, a hub manifold, in-line tees, a connection system and production control system, and first deliveries are expected in Q2 2016. Murphy Oil operates block H and Petronas will operate the PFLNG-2.