Partners of the Jubilee field are expected to meet in London next week to decide on the most appropriate option to adopt for the repair of the damaged turret bearing on the FPSO Kwame Nkrumah.
This is according to the CEO of Ghana National Petroleum Corporation (GNPC), Alex Mould.
According to him, the meeting has become necessary as it will help to find a lasting solution to the challenges with the turret bearing.
“We still haven’t concluded whether the vessel will be actually taken out or repaired in situ or whether we would abandon the turret and just have a permanent spread mooring of the vessel. These are the discussions that are going to take place next week; partners are meeting in the UK at the Tullow head office. We have met with the designers and the developers of the turret,” he explained.
Lead operator of the FPSO, Tullow, says it is considering the two options that is, onshore or offshore repairs of the damaged turret bearing.
Faulty turret bearing reduces oil production at FPSO
The faulty component has led to a massive drop in oil production by more than half.
Average oil production is currently around 50,000 barrels compared to the initial daily production of about 100,000 barrels.
Speaking to Citi Business News at the sidelines of the tour of the FPSO John Evans Atta Mills, Alex Mould was also hopeful the meeting will propose the most efficient option for the oil industry.
“There are solutions but we hope we will be able to take a decision sometime next year as to whether we would fix it in situ or not,” he stressed.
Meanwhile two dynamic boats have been placed at each side of the FPSO Kwame Nkrumah to stabilize its position to allow production to inch up to about 100,000 barrels per day by January 2017.
Repair to cost over $345m
Tullow believes the first two phases to be rolled out to fix the turret will cost between $100-150 million but those phases will be subject to government approval.
A trading Statement and Operational Update released last month indicated, ‘The Partners are working with the Government of Ghana to seek their approval for this option. The first phase of this work will involve the installation of a stern anchoring system to replace the three heading control tugs currently in the field.
This is anticipated to be completed by the end of 2016 and will require short periods of reduced production. Tullow then plans a second phase of work to rotate the FPSO to its optimal spread moor heading in the first half of 2017’.
There will also be additional gross operating expenditure of the revised procedures which are currently expected to be around $115 million for 2016 and $80 million for 2017.
‘Upon completion of the spread mooring work programme in mid-2017, the Partners will review opportunities to improve the efficiency of offtake procedures, which may include the use of a larger dynamically positioned shuttle tanker, and seek to return production to levels seen before the turret issue occurred. The additional gross operating expenditure of the revised procedures is currently expected to be around $115 million for 2016 and $80 million for 2017’.
Jubilee FPSO to be shut-down for 8-12 weeks in 2017
The lead operator adds that the Jubilee FPSO will have to be shut-down for 8-12 weeks during the first half of 2017 as part of moves to fully fix the turret.
‘The work programme covering these phases, which requires Government approval, is expected to cost $100-150 million gross and it is estimated that the Jubilee FPSO will need to be shut-down for 8-12 weeks during the first half of 2017’.
Tullow adds that ‘a deep water offloading buoy is anticipated to be installed in the first half of 2018. This will remove the need for the dynamically positioned shuttle and storage tankers and the associated operating costs. Market enquiries are currently ongoing to estimate the cost and schedule for the fabrication and installation of this buoy’.
By: Norvan Acquah-Hayford/citibusinessnews.com/Ghana