Pandora FLNG Wison Offshore & Marine

Cott O&G representatives on the

Caribbean FLNG vessel, Nantong.
www.wison.com | www.wison-offshore.com

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Contents
Project Background
Wison Capability
FLNG Solution
Capital Cost
Operational Expenditure
Development Pathway
Construction Schedule
Financial Viability

www.wison.com | www.wison-offshore.com

Cott O&G representatives Andrew Dimsey, MD, and Alistair Jobling,

Commercial Manager, in the Nantong fabrication yard board room.

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Pandora FLNG Project Background

Wison Offshore & Marine was asked to
undertake high level concept study for the
development of the Pandora gas field
using floating LNG technology based on
the following criteria:
800 bcf recoverable resource of lean gas
Production rate up to 200 mmscfd
Acid/sour gas removal and disposal

The study included:

Identification of location-specific parameters for developing concept including:
Hull design
LNG containment system and capacity

Pre-treatment
Mooring and offloading
Description of technically feasible concepts and indicative capital costs
High level operating estimates

Pathway for evaluation and development of preferred FLNG solution.

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Business Segments
Focusing on the Energy Industry and Hi-tech Sectors

Wison Group
Engineering Services

Specializing in
petrochemicals, coal
chemicals and refining
industries

Offshore & Marine

A word-class EPC
Contactor focused
providing solutions on
international oil and gas
EPC Projects.

Clean Energy

Using coal as feed

stock, Wison Energy
provides high quality
industrial gases via
clean coal technology.

Emerging Business

Development of
emerging chemical and
LNG related businesses.

The Wison Group employs approximately 3,000 people worldwide

www.wison.com | www.wison-offshore.com

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Wison Offshore & Marine

International oil and gas EPC contractor and fabricator.
Services cover the full life cycle of project delivery, from facility design and engineering
to project management, construction and commissioning.
Proven expertise with fixed platforms and modules, LNG systems, floating production
and drilling systems, offshore support vessels and offshore lifting equipment.

www.wison.com
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| www.wison-offshore.com

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Current Projects Caribbean FLNG

Caribbean FLNG barge scheduled
for operation early 2015
Project is on schedule and budget.
FLNG is to be located 4 Km
offshore in 14m water depth

FLNG storage and process requirements are:

- Storage - 16,000 m3
- Liquefaction - 0.5mmtpa
- Alongside FLNG is 140,000 m3 LNG Floating Storage
Unit (FSU)

Gas source is Pacific Rubiales Energys (PRE) La

Creciente field
PRE will build an 18 inch pipeline to transport gas
from the field to the coast (88 Km)
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Floating Regasification Unit Projects

Wison has signed contracts for the
development of 2 LNG regasification barges
Newbuild barge-based
Regasification capacity of 4.47 MTA

750MMscf/d nominal
1,000MMscf/d maximum

Designed to accommodate future regasification

expansion to 8.94 MTA with addition of another
750MMscf/d module
Storage either on board or a separate unit
(FSU)
Moored via dolphin mooring system in 20m of
water

www.wison.com | www.wison-offshore.com

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Wison - EPCIC contractor

Overall project management

E-P-C-I-C
Transportation
Start-up

Major subcontractors:
Regasification - Black & Veatch
and Hammworthy

Nantong Yard

Covers an area of 640,000m2

Coast line of 735m
Water depth 15m
Peak Staffing 3,500

www.wison.com | www.wison-offshore.com

Dry dock: 290m(L) x 68m(W)

Skid way: 60T/m2: 600m x 42m
Operational Since 2006

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Under Construction

Zhoushan Yard

Total investment $200 million US

Covers an area of 1,500,000 m2
Coast line of 2,300m
Water depth 15m
Facing international sea route

www.wison.com | www.wison-offshore.com

Dry dock: 400m(L)x120m(W)

Skidway: 30,000 ton
Skidway Operational: 2013

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Partnerships and Technology

Wison would be the primary EPCIC

contractor for the fabrication and design of
the FLNG vessel, Wisons scope:
FLNG Project Management, Engineering,
Procurement, Construction,
Commissioning, Transportation,
Installation and Start-up of the Facility
Wison will engage major subcontractors:
Black & Veatch: Topside LNG Equipment
Design, Procurement & Commissioning
Liquefaction technology is Black & Veatch
PRICO Single Mixed Refrigerant (SMR)
SPB Tank manufacturer: Cargo Tanks &
Cargo Handling Systems
EPCIC contract structure to be finalised
based on ownership structure of vessel and
key infrastructure

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Client/Owner
Potential Build Own Operators

EPCIC Contractor

LNG Storage and Handling

System

Process Design

Infrastructure
subcontractor

PRICO SMR Liquefaction Technology

Black & Veatchs patented PRICO

Single Mixed Refrigerant technology
is the simplest form of mixed
refrigerant cycle.
B&V has considerable experience in
the field:
-

30 global LNG plants in operation

18 plants under engineering or
construction

Process is scalable over wide

capacity range but core process
remains the same.
Compact layout with modular
philosophy lends itself to use
offshore.
Simplicity of process results in
relatively low cost.
Simplified operations lead to quick
startup.

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Concept 1 Offshore FLNG

FLNG vessel with 170,000m3 SPB tank storage to eliminate sloshing

2 x 0.5 MTPA water-cooled liquefaction trains (Black & Veatch PRICO)

Gas Turbine
Heavy hydrocarbons used in Fuel Gas

Onboard gas treatment (amine tower, mercury bed) and reinjection of sour
gas stream into reservoir
External turret mooring vessel can weathervane
Side-by-side or turret offloading to be determined - subject to review of the
metocean conditions and suitability of offloading solutions
Accommodation and utilities
Vessel construction estimated to take 38 months

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Concept 2 Near Shore LNG

Field production via a Buoyant Tower.
- Dry completions on board
- Gas pre-treatment and sour gas re-injection
Clean gas pipeline to near-shore location (approx 160km)
170,000m3 storage barge jetty/dolphin moored in min 14m depth or
Gravity Based Structure (GBS)
1 MTPA liquefaction capacity via 2 x 0.5 MTPA Liquefaction trains
Side-by-side offloading
Vessel construction estimated to take 36 months

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Near Shore Schematic

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Near-shore Solution
Offshore field production using a Wison Horton designed Buoyant
Tower
Cost effective solution for the water depth and soil conditions
- Dry-trees
- Quick installation
- Wison installed the BPZ BT offshore Peru in 2012
Buoyant Tower topsides include production trees, gas pre-treatment
for sour gas removal and cleanup, sour gas reinjection, and
compression for the subsea pipeline to a near-shore location
Sub sea pipeline will run approximately 160km to an inshore
location that provides protection from harsh weather and seastates
LNG barge will be located in shallow water (at least 14m) allowing
LNG carriers to berth alongside whilst eliminating or minimising the
amount of dredging required
Barge can be jetty moored or part of a Gravity Based Structure

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Horton Wison Buoyant Tower

Current Status

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Buoyant Tower Installation CX 15

Topside and Hull on one Vessel

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Advantages of a near shore solution

Advantages
Near shore LNG barge is considerably simpler and less expensive
Reduced infrastructure compared to traditional onshore LNG plants
Can monetise onshore and/or offshore gas
Easier LNG transfer conditions, reduced impact of weather windows
Easier to develop a generic design for expansions
Easier logistics Logistics hub can be located nearby on land
Support vessels should be more readily available and cheaper
Shared utilities
Accommodation
Safety
Located closer to local communities and businesses
Disadvantages
Total solution is more costly and has greater proportion of non-relocatable capex (eg
pipeline)
Increased staff costs due to dual platform. Near shore LNG barge is considerably
simpler and less expensive than an onshore facility

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Project Capital Cost Estimates

Concept 1 Offshore FLNG

- 1 MTPA FLNG vessel, inclusive of pre-treatment, 170,000m3 SPB LNG
storage, turret moored with tandem offloading.
- Estimated CAPEX of $US 900 - $1,100 / tonne LNG throughput

Concept 2 Near-shore LNG

- 1 MTPA FLNG barge, 170,000m3 SPB LNG storage, jetty / dolphin
moored with side-by-side offloading
- Near-shore solution includes the cost of:
- Buoyant Tower, estimated at $US 360M; and
- 160km sub-sea pipeline, estimated at $US 418M
- $US 600 -$700 / tonne of LNG throughput for LNG vessel
- Total estimated CAPEX of $1.3 1.4Bn

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Operating Expenses and Project Viability

Operating Costs
Deepwater solution - Higher operational expense due to the remoteness,
increased staffing costs, impact of weather conditions and sea-state on
production and offloading, gas pre-treatment and sour gas reinjection
Liquefaction operational expense of between $1.50/ mmbtu to $2/ mmbtu
Near shore solution Lower liquefaction operational expense, however
additional costs or tariffs for the Buoyant Tower and subsea line operation
Overall near shore LNG operational expense of between $2/ mmbtu and
$2.5/ mmbtu
Operational expenses for both scenarios include maintenance, refrigerant
makeup, staff, chemicals and consumables.
Total cost to produce LNG from the Pandora field are in the region of $6.5/
mmbtu to $8.10 /mmbtu including recent LNG carrier day rates
Project Viability
Based on the information analysed by Wison and the capex and opex
assumptions, the Pandora FLNG project is appears technically and
commercially viable and should progress to the next stage of development

www.wison.com | www.wison-offshore.com

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Development Pathway
Concept Selection
Pre-FEED +/- 20% Capital cost estimates development cost.
-

The field development components to be included are the Buoyant

Tower with topsides, subsea pipeline (in the case of near-shore
development) and FLNG facility

FEED to develop a definitive design and a +/- 10% cost estimation.

This stage will result in a lump sum EPC price for the delivery of an
FLNG vessel, Buoyant Tower and pipeline (if near-shore
development)
FID
EPC Construction contract with Wison Offshore & Marine
Installation and Commissioning
Hand over and on going support

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Pre-FEED
The next steps are further engineering studies to develop a basis of
design used during the pre-FEED design of the LNG barge, buoyant
tower, sour gas reinjection and subsea pipeline
Pre-FEED stage will determine the facilities required and identify all
major technical challenges and issues
The end result of the pre-FEED study is an initial engineering design
with a cost estimate of increased accuracy to evaluate project
economics
Wison Offshore & Marine will provide a pre-FEED project CAPEX
and OPEX with a cost accuracy of (20%) for a lump sum turnkey
near-shore LNG barge and Buoyant Tower
Environmental and government regulations and approvals to be
identified by the owner and addressed will require ongoing
engineering input in the approval processes as the project proceeds

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Construction Schedule
Preliminary schedule based on WOMs experience with a nearshore FLNG
Total construction timeframe from award of EPCIC contract until first
gas is approximately 36 months

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Wison Offshore & Marine (Hong Kong) Ltd.

Australian Office
Level 24, Allendale Square
77 St Georges Terrace
Perth, WA, 6000

THANK YOU

Wison Offshore & Marine (USA), Inc.

1400 Broadfield Boulevard, Suite 150, Houston, Texas, USA
Tel+1 281 676 2650
Fax: +1 281 676 2086

Wison Offshore & Marine, Ltd.

699 Zhongke Road, Zhangjiang Hi-tech Park, Shanghai, China
Tel+86 21 2030 6789
Fax: +86 21 5855 7211

www.wison-offshore .com

www.wison-offshore.com
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