Sapura lumut is hiring, for what project? Hess phase 4? Saudi aramco?

Four competitors vying for the deal to provide a floating production, storage and offloading vessel for the Limbayong development offshore Malaysia are working hard behind the scenes to secure the valuable job.

The Limbayong field, located 123 kilometres offshore the state of Sabah in water depths between 900 and 1200 metres, is Kuala Lumpur-based national oil company Petronas’ first operated deep-water development in Malaysia.

The bidding process has been off and on for several years, with some Kuala Lumpur-based contracting sources saying an element of fatigue is creeping in among the bidders as the prolonged tendering process continues.

The procedure has been hampered by disruptions in Malaysia caused by the coronavirus pandemic and work that Petronas is doing to enhance the commerciality of the project.

In addition, Petronas has requested that the validity of the bids for the Limbayong FPSO be extended from the end of August until the end of October, according to project sources.

In the meantime, each of the bidding groups is working hard behind the scenes to improve their chance of success, said well-placed floater market sources.

Technical and commercial offers for the Limbayong FPSO were submitted in February and featured four leading floater contractors or consortia, dominated by Malaysian companies: Bumi Armada with MTC plus India's Shapoorji Pallonji; MISC; Yinson Holdings; and Sabah International Petroleum.

Up for grabs is a valuable lease and operate contract with a firm 12-year period, plus a pair of options each for three years and another for two years.

Sabah International Petroleum — despite its inexperience relative to its rivals — is said by some sources to potentially have an advantage, but all the parties are said to still be in with a shout of landing the contract.

Petronas is said to be receptive to various FPSO solutions including the upgrade of an existing floater or the conversion of an oil tanker.

A number of existing FPSOs that are available for a new field opportunity have been suggested for Limbayong, including the Nganhurra, Dhirubhai-1 and Stybarrow Venture MV16.

The Nganhurra formerly worked on the Enfield field in Australia, while the Dhirubhai-1 formerly worked for Reliance offshore India and the Stybarrow Venture MV16 was previously at the Stybarrow field in Australia.

One very experienced FPSO market watcher said that, while redeploying an existing FPSO might sound attractive, it could also “be like opening a Pandora’s box”. By contrast, with a conversion, “you know more or less what to expect”.

Meanwhile, at least three of the bidders have invited suppliers of turret mooring systems to partner up for Limbayong, said sources.

The Limbayong FPSO will be capable of handling an initial 60,000 barrels per day of liquids, including 40,000 bpd of oil, plus about 180 million cubic feet per day of associated gas. Water injection facilities for up to 75,000 bpd will be included.

The floater is expected to have nameplate storage capacity of 600,000 barrels of oil.

Proven and probable reserves at the field are reckoned to be 139 million barrels of oil and 784 billion cubic feet of gas, according to sources.

Earlier this month, TechnipFMC finalised its contract with Petronas for the Limbayong subsea production system, and the subsea umbilical, riser and flowline contract.

Adif Zulkifli, Petronas’ executive vice president and chief executive of Upstream, said at the time: “The Limbayong project is aligned with Petronas’ three-pronged growth strategy to expand our resource base. We hope the project…will give confidence and invite potential investors to collaborate further in maturing the country’s deep-water resources. Apart from monetisation, Limbayong will be a platform to enhance our internal capabilities in preparing for the next deep-water projects not only in Sabah but also in other regions.”

https://www.upstreamonline.com/exclusive/ba...sia/2-1-1028779

SPS awarded.
How to monetize the asset? huhu  

that's news to me.

maybe the current brent crude price above USD80 could have changed the development strategy.

Confirmed news from inside one of the main bidders team.