MacGregor CNOOC China Sea bid succeeds

MacGregor CNOOC China Sea
CNOOC’s FPU on the Lingshui 17-2 gas field.

MacGregor, part of Cargotec, has received an order from the China National Offshore Oil Corporation (CNOOC) to supply the riser pull-in system for a deepwater Floating Production Unit (FPU) located on the China Sea Lingshui 17-2 gas field.

The order is booked into Cargotec’s third quarter of 2019 order intake and delivery will take place during 2020.

The Lingshui 17-2 gas field is CNOOC’s first own R&D deepwater project. It is situated 150 kilometers, (93 miles) offshore in the northern part of the Qiongdongnan Basin on the western continental shelf of the northern South China Sea, with water depths from 1220m to 1560m. CNOOC is the sole operator.

CNOOC expects first gas production at Lingshui 17-2 at the end of 2021, while WoodMac’s Research Director for Asia Pacific Upstream, Angus Rodger, sees first gas in 2022, considering that it will be a new deepwater project with little existing infrastructure in place, according to

Aker Solutions won an order in October 2018 from CNOOC to provide the subsea production system and umbilicals for Lingshui 17-2. The delivery for the system and umbilicals will take place between the second half of 2019 and the end of 2020.

“We are delighted that CNOOC has once again chosen us as their trusted partner after securing the mooring system contract in the first quarter of 2019,” Høye Høyesen, Vice President, Advanced Offshore Solutions said of the MacGregor CNOOC China Sea order.

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MacGregor is a leader in intelligent maritime cargo and load handling with a strong portfolio of MacGregor, Hatlapa, NMF, Porsgrunn, Pusnes, Rapp, Triplex and TTS products, services and solutions, all designed to perform with the sea.

MacGregor is part of Cargotec (Nasdaq Helsinki: CGCBV). Cargotec’s sales in 2018 totalled approximately EUR 3.3 billion; the company employs around 13,000 people worldwide.

As per government policy, China is looking to increase its natural gas production, especially shale gas output, to reduce its import dependence while demand continues to grow in the foreseeable future.

Lingshui 17-2 is seen as a test of how the Chinese offshore explorer and producer would fare in operating a deepwater gas field alone, without the support of partners like Total or Exxon with which CNOOC holds stakes in offshore projects outside China.

CNOOC discovered the Lingshui field in 2014 using its own semisubmersible rig and crew. It is CNOOC’s first discovery as an operator. In September 2014, the field was expected to revive interest from international oil majors in deepwater exploration offshore China, but the oil price crash crippled investment interest for such risky deepwater drilling and companies backed off.

Source: Combined reports