Sevan FLNG Study is for Exxon's Scarborough
Refiled 11pm, with new 4th paragraph naming Scarborough project
Sevan Marine said February 24 it has entered into a long-term framework agreement with ExxonMobil for the provision of services and use of Sevan Marine's cylindrical hull technology.
The Norwegian contractor said it 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 a FLNG [floating liquefaction] development. Sevan Marine added that it is now working on a follow-up study focusing on the hull and marine aspects of Sevan Marine's unique cylindrical design. The total value of the framework agreement is not yet specified.
Exxon told NGW in May 2016 that the Sevan Marine FLNG study is “not our study.” Sevan had said at the time and since that the study was for a "US oil major". Its February 24 statement did not state where FLNG is being considered by Exxon.
NGW's original May 2016 enquiry was addressed to ExxonMobil's East Africa affiliates only, the US supermajor admitted later on February 24, adding: "To confirm, this study is in relation to the Scarborough field. While development of Scarborough remains challenged, we have remained committed to advancing evaluation of floating LNG as the lead development concept." ExxonMobil is operator with a 50% interest in the Scarborough project 220km northwest of Exmouth, Western Australia. Woodside and BHP Billiton each hold 25% equity. Scarborough area assets include the Scarborough, Thebe and Jupiter gas fields which are estimated to contain gross 8.7 trillion ft3 of dry gas resources at the 2C confidence level.
Sevan Marine expects the first order under this agreement, involving the continuation of engineering and FLNG design work, later this month. "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," said Sevan Marine CEO Reese McNeel.
He added: "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."
Mark Smedley