[UK] FPSO Cambo

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escveritas
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[UK] FPSO Cambo

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Siccar Point Energy Announces Cambo FEED Contract to Sembcorp Marine

29 August 2019: Operator Siccar Point Energy E&P Ltd (‘Siccar Point’) has awarded an exclusive Front-End Engineering and Design (FEED) contract to Sembcorp Marine Rigs & Floaters Pte Ltd (‘Sembcorp Marine’) for the design of a Sevan cylindrical FPSO for its Cambo field development on the UK Continental Shelf.

The Cambo field, located 125km northwest of the Shetland Islands and in a water depth of 1100m, was discovered in 2002, and subsequently had 4 appraisal wells drilled up to 2012 and a final successful appraisal well was drilled and flow tested by Siccar Point during the summer of 2018.

Sevan SSP AS is a wholly owned subsidiary of Sembcorp Marine, having been acquired in 2018. Sembcorp Marine have contracted KBR for topsides design and integration support with work being carried out in Singapore and Norway. The Cambo partners had been working with two FEED contracting options since early this year and have now selected Sembcorp Marine to complete their FEED work for the Sevan cylindrical FPSO.

In addition to the FPSO contract, other FEED work is being undertaken by BHGE for wells, subsea and riser systems, and by Genesis for a gas export pipeline. A draft Field Development Plan has been submitted to the Oil & Gas Authority. Formal project sanction will be sought following completion of the FEED activities.

Shell acquired a 30% working interest stake in the field from Siccar Point in 2018. Jonathan Roger, CEO of Siccar Point commented: “This is another important milestone for the Cambo project and we look forward to working with our partner Shell as we progress towards formal project sanction next year.”
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Re: FPSO Cambo

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Siccar Point Energy Announces Cambo FID Deferral to 2021

30 March 2020: Operator Siccar Point Energy E&P Ltd (‘Siccar Point’), and its joint venture partner, Shell UK, have announced the deferral of the planned sanction date for the Cambo project to 2021 in light of the unprecedented worldwide macroeconomic dislocation resulting from Covid-19.
The Cambo field, located 125km northwest of the Shetland Islands and in a water depth of 1100m, was discovered in 2002, and subsequently had 4 appraisal wells drilled up to 2012 and a final successful appraisal well was drilled and flow tested by Siccar Point during the summer of 2018. It is
one of the largest undeveloped fields in the UKCS and will open-up other prospects for potential development in the area.

Siccar Point and Shell UK had been planning to bring the project to a Final Investment Decision (‘FID’) in the third quarter of this year. This will now be targeted for the second half of 2021, subject to approval of the necessary licence extension, a request for which has been submitted to the Oil and
Gas Authority.

Siccar Point will continue to work with existing key supply chain partners over the coming period to ready the project for FID next year.

Jonathan Roger, CEO of Siccar Point, commented: “Cambo remains an extremely attractive development with compelling economics. However, given the uncertainty of the global situation, including whether any people, goods and services can be mobilised in OECD countries, it makes sense to hold-off final approval until some normality returns to the market and a clear and robust path forward can again be established. In the meantime, Siccar Point is very well positioned with respect to this downturn having both substantial cash balances and very full hedging for 2020 and 2021. During the period of delay, we will continue to mature key aspects of the project to facilitate a swift and efficient ramp-up when market conditions stabilise.”
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Re: FPSO Cambo

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Sevan SSP and Sembcorp Marine continue engineering work on Siccar Point Cambo

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Sevan SSP and its parent company, Sembcorp Marine, are continuing with the pre-FID engineering work for Siccar Point Energy’s Cambo FPSO in anticipation of development sanction on the project in late 2021. The group has been working with Siccar Point since 2019 to develop an innovative cylindrical FPSO for the Cambo field.

This unique design-and-build project is based on Sevan’s proprietary geostationary circular hull, a proven design that has excellent sea-keeping and motion characteristics with enhanced stability and operational performance for safe operation in challenging conditions and harsh environments.

The design allows for modularised fabrication and assembly and scalability, and eliminates the need for a costly mooring system, making it a cost-efficient alternative to traditional floating barge solutions.

The favourable motions of the Sevan hull, in particular in mid- to deepwater harsh environments, makes it suitable for deployment on the rough seas of the Cambo field. Located in the Corona Ridge area outside of the Shetland Islands at a water depth of 1,100 m, Cambo contains over 800 million barrels of oil in place.

The Sevan solution is not limited to offshore oil applications and can be adapted to an array of gas and renewable energy solutions. The group continues to receive enquiries relating to Sevan’s circular hull solutions from existing and potential customers including those in the areas of gas and renewable energy involving digitalisation, carbon capture and electrification-related solutions.
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Re: FPSO Cambo

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Siccar Point Energy confirms that its partner in the Cambo development Shell has taken the decision to not progress its investment at this stage. Jonathan Roger, CEO of Siccar Point Energy said: “Cambo remains critical to the UK’s energy security and economy. Whilst we are disappointed at Shell’s change of position, we remain confident about the qualities of a project that will not only create over 1,000 direct jobs as well as thousands more in the supply chain, but also help ease the UK’s transition to a low carbon future through responsibly produced domestic oil instead of becoming even more dependent on imports, with a relatively higher carbon intensity.

“We will continue to engage with the UK Government and wider stakeholders on the future development of Cambo.” Siccar Point Energy, together with Shell have carried out many months of due diligence and assurance, stakeholder and regulatory consultation.

A ‘cliff-edge’ transition, by cutting UK gas and oil production, would risk jobs and leave the country reliant on imports, often from less regulated countries – doing nothing to cut demand or emissions. Cambo would help to reduce the volume of imports required, by delivering up to 170 million barrels of oil equivalent during its 25-year operational life. Cambo would also provide a further 53.5 billion cubic feet of gas – enough to power 1.5 million homes for a year. The hydrocarbons Cambo would produce are suitable for a UK and European market, helping to support domestic supply during the period that renewable energy is expected to scale to levels to meet UK energy demands.

Jonathan Roger continued: “Given Shell’s decision, we are now in discussions with our contractors, supply chain and wider stakeholders to review options for this important development.” Earlier this year Cambo proactively underwent a Net Zero Stewardship Expectation review by OGA,
which informed the field development plan. The development will be on average 50% lower in emissions from the outset than existing fields thanks to a vast range of measures and it will also be built electrification ready to take power from renewable energy when feasible. Cambo has undergone
three rounds of environmental statement consultations and consulted wide ranging stakeholders.
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