Wood Group wins second Ca Rong Do FEED package

Vietnam

HANOI, August 17, 2015 – Wood Group Kenny has been awarded a front-end engineering and design (FEED) contract from Talisman Energy for the $1.1-billion Ca Rong Do development offshore Vietnam. The contract, of undisclosed value, covers work on the subsea system and structures, risers, flowlines and power and control umbilicals for the project, which will see a newbuild tension-leg platform housing 12 wells connect to a leased floating production, storage and offloading (FPSO) vessel.

The contract is the second of three FEED packages Talisman plans to award for the project. The first, which covered risers for the tension-leg platform, also went to Wood Group Kenny, a division of the UK’s Wood Group, in April 2015. The remaining FEED package, which covers the platform itself, is expected to go out in the third quarter of 2015.

The contract for the FPSO is expected to be a fixed-term eight-10-year lease, and tender by the end of 2015. It is understood three companies are in the running: Malaysia’s Yinson Holdings and Bumi Armada, and Singapore’s Emas Offshore. The FPSO is slated to have a processing capacity of 25,000-30,000 barrels of oil per day and 60 mcf of gas.

The Ca Rong Do, or Red Emperor field, lies in block 07/03 southeast offshore Vietnam at a water depth of around 320 metres. The operator of the block, Talisman, which was acquired by Spain’s Repsol in May 2015, has estimated the field’s proven and probable, or P2 reserves, to be around 67 million barrels of oil equivalent. The remaining stakeholders include Abu Dhabi’s Mubadala Petroleum (25 percent), state-owned PetroVietnam (15 percent) and Australia’s Pan Pacific Petroleum (5 percent).

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