Ramp Up of Phase 2 Activity Continues

The Liza Phase 2 team has been working with SBM Offshore to leverage lessons learned from Liza Phase 1 to improve the supply chain process. Some of the actions taken based on these learnings include:

• Increased the number of purchase orders (POs) in the front end engineering design (FEED) stage for equipment requiring long lead times, while also ensuring adequate staffing was available to support ramp-up in PO activity post-FEED
• Focused on prioritization of modules and systems to identify bulk order requirements to support fabrication
• Developed an overall valve strategy to ensure delivery of valves to support fabrication schedule

The subcontract for module fabrication has been awarded to Dyna-Mac, and activities supporting this work have begun.

The kick-off meeting for the fabrication work was held in early March, and Dyna-Mac has already placed the PO for the bulk steel. Supervisor safety, security, health and environment (SSHE) engagement is planned to take place in early May. The steel cut date is scheduled for late May.

Overall progress on the Multi-Purpose Floater (MPF), the new-build hull for the Liza Unity FPSO, is approaching 60 percent. Hull mega block erection is ahead of plan, and welding of the blocks is ongoing.

The hull is planned leave the dry dock in June with the additional construction work, mechanical completion and commissioning to happen quayside at the Shanghai Waigaoqiao Shipbuilding Co. (SWS) shipyard.

TechnipFMC (TFMC) is continuing reviews of component designs. All major umbilical components are now on order, and assembly has begun on the first two subsea control modules (SCMs). Manufacturing and construction activities are also ramping up at Spitzer Industries in Houston. Steel has been cut and welding has commenced for four production manifold structures, which replicate Phase 1 manifolds.

The detailed design of the smart wells to be used in Liza Phase 2 is being finalized. Smart well technology uses sensors and flow control valves to monitor, evaluate and manage production or injection of the subsea wells. As this happens without the need for any well interventions, smart wells allow for increased production, improved recovery and lower costs. Liza Phase 2 will be the first deployment of smart wells in a greenfield development for ExxonMobil and are just one example of the technology innovations being implemented in the Guyana projects.

At Saipem, significant progress has been made in purchasing activities. Shawcor has completed construction at its new insulation plant in Veracruz, Mexico, and the plant has received the first shipments of linepipe. Sumitomo in Japan is now about 50 percent complete with linepipe manufacturing.

Saipem has also completed mid-point design reviews for all major scopes including risers, flowlines, subsea structures and jumpers. The fabrication scope for flowline and pipeline terminations has been awarded to Gulf Island in Louisiana. Gulf Island was contracted during Liza Phase 1 for the fabrication of flowline walking mitigation structures.

The first delivery of basket castings for the flex joint receptacles from Bradken has been received by Oil States Industries (OSI) in Houma, Louisiana. The accelerated delivery and improved quality performance was achieved by implementing the lessons learned from Liza Phase 1. OSI has also progressed key purchasing activities for flex joints, while finalizing key detailed design activities.