Add Energy has joined forces with Havoc Partners LLC once more to aid the appraisal and subsequent development of an oil discovery offshore Gabon.
Unique proposal using small FLNG vessels for stranded fields will save industry billions of dollars
Add Energy, an international energy consultancy provider, has partnered with Transborders Energy (TBE) and joined forces with TechnipFMC and MODEC to create a unique and fast deployment business model for the FLNG (floating liquefied natural gas) industry that will free up small-scale stranded resources around the world and establish a new concept in global gas field development.
The new business model targets discovered gas resources of ≈ 0.5 to 2.0 trillion cubic feet of gas that have little value to their current owners because they are either in remote locations where tieback is capital intensive, or lack an economically viable development concept.
Key to the model is the deployment of an innovative small scale FLNG vessel. Rather than investing up to five years in identifying a gas resource, understanding its size and potential and creating a bespoke development concept, the new model establishes a pre-defined concept incorporating the use of a ≈1.0 million ton per annum FLNG vessel and applies it to fields that fit the concept.
This low cost concept represents a radical change in gas field development and will unlock hundreds of the world’s previously uneconomic smaller natural gas plays.
TBE Managing Director Daein Cha said: “The economies of scale pursued by mega projects have not eventuated. They are too capital intensive and risky in terms of resilience and flexibility for what is a commoditizing business.
“However, the deployment of our pre-determined, low cost small scale FLNG concept on already discovered but stranded resources with innovative financial and commercial structures delivered by a small but high caliber team establishes a new value proposition to the resource owners and LNG buyers.”
Add Energy will manage the drilling operations, maintenance, safety and risk management of the projects and is the exclusive partner to engineer, procure, drill and operate the wells.
TechnipFMC is a global leader in engineering, procurement, construction and installation (EPCI) of oil and gas projects. It is an industry leader for FLNG and subsea, umbilicals, risers and flowlines (SURF) and is the exclusive partner for TBE to EPCI the SURF and the FLNG vessel
MODEC is a global expert in EPCI, operations and maintenance of floating production systems. It is the technical adviser for the EPCI of the hull, LNG tank and turret mooring system of the FLNG vessel, together with the operations and maintenance of TBE’s FLNG vessel.
Offshore Australia has been identified as suitable for an initial pilot project, with a target resource to be confirmed early 2018 and the project to be reach Final Investment Decision ready by 2020. TBE is also in discussion with resource owners of other jurisdictions to pursue global opportunities.
Eduardo Robaina, VP for Well Engineering, Add Energy, said: “LNG development is currently focused on fields with large scale volumes between 5 and 10 trillion cubic feet or more. However, a supply shortage in LNG is expected from mid 2020 due to demand growth and a failure to proceed with new mega project developments.
“Large scale LNG projects typically involve up to five years of front-end engineering and design work and a further six years for EPC activities, but new projects need to progress now to capture this upside.
“The Transborders’ concept enables the development of previously uneconomic resources at a much faster pace than that of mega projects and will help feed the growing demand for energy, initially in Asia and elsewhere. Add Energy’s role will be to ensure well construction, maintenance and well intervention activities ,are carried out in accordance with best practices and industry standards.”
Add Energy, an international energy consultancy and software provider has recently secured work with three operators in the North Sea for the provision of Environmental Management and Reporting Software (NEMS Accounter).
Add Energy and DC Gruppe have combined their industry expertise to provide innovative engineering and asset support services to some of the most challenging industrial problems in Saudi Arabia.
The contract, expected to turnover almost $20m, has strengthened Add Energy’s Middle East presence as well as providing the capacity to secure an additional 40 jobs to complete the proposed projects.
Under the commercial partnership with DC Gruppe, which includes an office base in Saudi Arabia, Add Energy can now offer its technical know-how and specialised engineering solutions to the demanding Middle East market.
The new relationship will not only enable Add Energy to widen its Middle East presence out with its Middle East headquarters in Muscat, but it will also allow for further bidding on key asset support service work in the region.
Peter Adam, Add Energy’s EVP for Asset & Integrity Management said: “We are thrilled to be partnering with industry leaders, DC Gruppe, further strengthening both companies' core offering and expert services in this area."
“In having established offices and delivering successful projects in Oman, Saudi Arabia had always been a logical key focus for Add Energy and our future growth. This partnership signifies the commitment that both companies are willing to make in order to drive optimization and safety integrity across operations in Saudi Arabia.”
Noor Alnahhas, Managing Director of DC Gruppe, also commented on the agreement, "We are excited about our partnership with Add Energy. As leaders in asset and integrity management, the company brings a unique set of services and solutions that complements and strengthens our existing offering in the region. During these challenging market times, clients are looking for solutions that provide efficiency, integrity and cost reduction and we believe this partnership will help us deliver exactly that."