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CNOOC to decide China Liuhua 11-1 Expansion final design

CNOOC to award Liuhua 11-1 TLP FEED contract

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolThe state-owned company China National Oil Offshore Corporation (CNOOC) is finalizing the conceptual design for the expansion of the Liuhua 11-1 offshore oil and gas field within the South China Sea.

Immediately after hammering the decision of the concepts to be developed, CNOOC will award the corresponding front end engineering and design (FEED) work for both projects Liuhua 11-1.

Discovered in 1987 by a BP led consortium involving Anadarko and CNOOC, Liuhua is the largest oil and gas field of the South China Sea.

CNOOC_Liuhua_11-1_TLP_FEED_MapIn 2003, CNOOC bought all the shares from BP and Anadarko, so that it now remains as the solely owner and operator of Liuhua field.

Usually the position of sole owner is helping to make decision but CNOOC had to evaluate a number of potential solutions to develop Liuhua 11-1 in connection or not with its adjacent Liuhua 16-2.

CNOOC analyzed very different conceptual designs with the consequence to delay the whole Liuhua Expansion project.

The Liuhua oil and gas field is located 70 kilometers southeast of Hong Kong by 370 meters of water depth in the Eastern South China Sea.

CNOOC estimated Liuhua to contain in-place reserves of 1 billion barrels of crude oil.

For the first phase of the development Luihua 11-1 is operated with a floating, production, storage and offloading (FPSO) vessel.

DMAR completed CNOOC Liuhua 11-1 TLP pre-FEED

In 2013, CNOOC mandated the Houston-based DMAR Engineering (DMAR) to performed the conceptual study for Liuhua 11-1 expansion.

At that stage CNOOC and DMAR were mainly considering to proceed with Liuhua 11-1 expansion through a tension leg platform (TLP) or a semi-submersible platform.

According to the last reports, CNOOC is giving preference to the TLP concept as requiring less capital expenditure.

On this concept CNOOC is currently evaluating offers from global engineering companies to award the FEED contract for this Liuhua 11-1 Expansion TLP.

Liuhua 11-1 TLP should be the first TLP to be installed in the South China Sea.

One of the technical challenges of this Liuhua 11-1 TLP is to produce heavy oil requiring significant additional equipment.

From the pre-FEED performed by CNOOC and DMAR the Liuhua 11-1 should support:

CNOOC_Liuhua_11-1_TLP_FEED – 16 subsea wells with corresponding wellheads

 – Electrical submersible pumps (ESP) for heavy crude oil

 – 4 power umbilicals to supply the ESPs

 – Chemical injection system

 – 35 kilometers export subsea pipeline

Currently four teams of engineering companies are competing for Liuhua 11-1 TLP FEED contract.

Some of the engineering companies are teaming up with Chinese contractors in order to secure their position for the next step, the Liuhua 11-1 TLP engineering, procurement and construction (EPC) contract.

Considering the time given for the FEED work, the EPC contract should be awarded on second half of 2015 so that CNOOC can expect a first production of the Liuhua 11-1 TLP at the end of 2016.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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