CNOOC Ltd has approved the overall development plan (ODP) for the Lingshui 17-2 deepwater natural gas field in the western part of the South China Sea.
CNOOC Zhanjiang, which is responsible for upstream operations in the western part of the South China Sea, prepared and submitted the ODP. The plan won approval from the CNOOC’s investment committee in February, paving the way for development to commence in 2019, with production to start up in late December 2020.
It is CNOOC Ltd’s first self-operated deepwater gas field in the South China Sea. For the country’s first deepwater gas field Liwan 3-1, which lies in the eastern South China Sea’s Pearl River Mouth Basin, CNOOC Ltd only operates the shallow part of the field’s facilities. These include a central processing platform (CPP) and a gas terminal in Zhuhai City of southern China’s Guangdong Province. CNOOC Ltd’s Canadian production-sharing partner Husky Energy operates the field’s deepwater section, including a subsea production system.
Lingshui 17-2 lies in 1,550 metres of water around 150 km south of Hainan Province. The development plan involves installing a semi-submersible production platform with condensate storage tanks and a subsea production system that will be connected by a spur gas pipeline to an existing pipeline linking the Yacheng 13-1 gas field with power generation facilities in Hong Kong.
CNOOC Zhanjiang has kicked off a tender for subsea facilities including Christmas trees, manifolds and umbilicals. The tender has drawn interest from international vendors such as UK-based TPFMC, the US’ GE and One-subsea and Norway’s Aker Solutions.
Industry sources have said it is unlikely that CNOOC Ltd will hold a tender of the semi-submersible platform and engineering, procurement, construction and installation (EPCI) work for the subsea facilities. They added that China’s leading offshore contractor China Offshore Oil Engineering Co. (COOEC) could be a preferred contractor for the fabrication and EPCI work for both semi-submersible platform and subsea equipment. COOEC is an affiliate of CNOOC Ltd.