Sinwa wins supply contracts for Prelude support vessels

31 May 2017, Week 21 Issue 567

Singapore-listed Sinwa has bagged a number of new supply agreements for vessels involved in Royal Dutch Shell’s Prelude floating LNG (FLNG) project in Australia.

The offshore supply and logistics company will provide provisions, stores and logistics support to the project, catering for the requirements of more than 1,000 personnel.

It will deliver the contracts via its 10,000 square metre Darwin facility, which is equipped with complete warehousing facilities including freezer, chiller, provision and general storages, as well as lay down and hard stand areas.

The agreements – which are worth more than A$8 million (US$5.9 million) combined – will kick off in August with revenue flowing through to the 2018 financial year, which ends on March 31, 2018. The deal represents Sinwa’s biggest ever contract win for a single project in Western Australia and the Northern Territory.

Sinwa’s CEO, Bruce Rann, said the company was pleased to have secured work for the “landmark” Prelude FLNG project “against the backdrop of a highly competitive and challenging business environment”.

The contract win is good news for the company, which announced earlier this month that its first-quarter revenue fell by 2.3% year on year to S$39.8 million (US$28.7 million) on the back of slower demand from the Australian marine offshore supply sector.

The Prelude FLNG project is on track to start up in 2018, Shell’s CFO, Jessica Uhl, said in early May as the company unveiled its first-quarter results. “Prelude remains on schedule,” she said. “We’ve indicated that start-up [will be] in 2018 and we remain confident in that timing.”

Technip Oceania also said in early May that it had awarded a pre-commissioning contract for Prelude FLNG to EnerMech. The scope of the contract covered pre-installation filling of the risers, riser leak testing, pressure monitoring of the umbilical and electrical steel flying lead during pipelaying and electrical flying leads/umbilical testing. The work will be conducted at the project’s Browse Basin location, with engineering and project management taking place at the company’s Perth base.

It is still unclear when Prelude will begin LNG production.

The project is being developed around 475 km northeast of Broome and more than 200 km off the coast of Western Australia. Shell is operator with a 67.5% stake, while Japan’s Inpex holds 17.5%, Korea Gas (Kogas) owns 10% and OPIC has 5%.

Shell is also using FLNG technology to develop the Concerto and Crux gas fields in the Browse Basin.

Edited by

Andrew Kemp

Editor

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