Liza Phase 2 Update

Smooth sailing for Liza Unity progress

SBM and Shanghai Waigaoqiao Shipbuilding Co. (SWS) Shipyard are making great progress and are about 50 percent complete with the Multi-Purpose Floater (MPF), the new-build hull for the Liza Phase 2 FPSO, named Liza Unity. The MPF is a generic new-build hull designed by SBM for larger throughput FPSOs.

MPF construction commenced in April with first steel cutting. On November 21, the team reached a key milestone with the commencement of keel laying in the dry dock. Thus far, they have approximately 60 blocks placed in the dry dock, and the vessel shape is starting to materialize.

The next major milestone is keel launching in July 2019, where the hull is sufficiently completed to leave the dry dock. The MPF forecast completion date is in Dec 2019, when it will then be towed to Singapore. In Singapore, it will enter another dry dock to add Liza-specific requirements such as riser balconies and mooring porches.

For the MPF, the team has a lot of work to do before sail away in December 2019. The SBM, SWS and ExxonMobil teams are working collaboratively to ensure that the hull is completed on time, while maintaining quality and safety expectations. In fact, the SWS team achieved a key safety milestone this quarter, reaching one million man-hours without a lost time injury (LTI).

While the MPF hull is being constructed in Shanghai, the FEED was completed at the end of 2018 for the Liza-specific marine aspects and all of the topsides design. By the end of December, the team had completed 30 percent of the 3D model review and mooring design review. Procurement of long lead equipment is progressing as planned, including continuing to issue purchase orders and to hold kick-off meetings with vendors. Execution planning continues for topsides fabrication and offshore installation activities.

We are looking forward to a busy and productive 2019 to further progress the Liza Unity FPSO.

TechnipFMC moves ahead with procurement, fabrication

Engineering activities are well underway for subsea hardware and umbilicals at TechnipFMC (TFMC). The TFMC team conducted site visits this quarter with key vendors, such as Howco UK, MPM Norway, TFMC Norway and Singapore, as procurement and fabrication activities kick off.

Purchase orders are progressing for key items, including production and water alternating gas (WAG) injection manifolds, major distribution components and umbilical raw materials. Repeating part numbers and leveraging the experience from Phase 1 for Phase 2 is helping to shorten the procurement cycle.

TFMC is also leveraging the same Phase 1 execution team for Phase 2, which helps keep the team as efficient as possible. Their familiarity with the project and ability to leverage lessons learned during Phase 1 allows for an accelerated project schedule for Phase 2 as compared to Phase 1.

First linepipe manufacturing – Sumitomo, Japan

Saipem continues execution, procurement activities

Detailed execution and installation planning is progressing well. The second face-to-face installation workshop between Saipem, TFMC and SBM took place in December in Houston. The goal of the workshop was to maintain momentum and a One Team approach on Phase 2 activities, while further detailing installation plans.

On the procurement front, Saipem is focused on executing the remaining POs, including fabrication of the subsea structures such as pipeline and flowline terminations. Linepipe manufacturing commenced during the fourth quarter at Sumitomo, and the first shipment is already on its way to Shawcor in Veracruz for product qualification testing (PQT) of the coating system.

The Shawcor Veracruz insulation plant modifications are scheduled for completion in the first quarter of 2019. Following receipt of pipe, the plant will conduct various testing activities in preparation for coating and insulation of production flowlines. Balmoral has also received the purchase order for buoyancy modules and will commence qualification activities in early 2019.

Leveraging experience from Phase 1 is also helping optimize the procurement cycle for Saipem. The project management for Saipem’s Phase 1 and Phase 2 teams has been designed to facilitate sharing lessons learned between the two teams. Conducting front end engineering design (FEED) with Saipem allowed them to be fully aligned on specifications and requirements even ahead of the contract award.

And from Oil States Industries (OSI), they have reached 50 percent completion with casting pours at Bradken for the flex-joint receptacles. OSI also continues to focus on finalizing the design of the flexjoints and the receptacles, and has started activities to support the welding qualification process for the flexjoints.