doing business in myanmar – what you need to know as a singaporean
Offshore project sanctions in Southeast Asia could lift greenfield investments in the oilfield services market by nearly 70 percent in 2020, according to Norwegian energy research firm Rystad Energy.
That’s thanks to megaprojects in Malaysia, Myanmar and Vietnam with new final investment decisions (FIDs) expected in 2021 for Vietnam, Indonesia and Brunei.
“We anticipate that operators will aim to place most of the associated contracts within their domestic markets, which will be welcome news for local players like Sapura Energy, MMC Oil & Gas, MMHE and many of the smaller yards,” Chinmayi Teggi, an analyst on Rystad Energy’s oilfield services solutions team, said in an email sent to Rigzone.
Rystad said that for suppliers, established local yards as well as major international players are “set to make a splash” while fixed platforms and floating units will rake in more than $2.5 billion in equipment purchase commitments and more than $4 billion for construction and installation of vessels and platforms.
The FPSO market is also expected to get a boost in Southeast Asia.
“All in all, the subsea market could see greenfield commitments worth more than $1.3 billion over the next two years, nearly double the $700 million in subsea commitments in 2019,” Teggi said.
Rystad notes the following key projects in Southeast Asia:
Myanmar
Two major contract awards are expected off the coast of Myanmar – the Shwe Yee Htun (Block A6) and the Shwe Phase 3.
Thailand
Ubon is a floating production, storage and offloading unit and a major contract with a low breakeven price set to award FEED contracts in 2020.
Vietnam
The Ca Voi Xanh (Blue Whale) development off Vietnam’s eastern coast is expected to experience delays beyond 2020, but it will likely be a key driver behind upcoming contract commitments. Another FPSO scheme is taking shape off Vietnam’s southwestern coast, with a field development plan submitted recently for the Nam Du/U Minh project.
Malaysia
Malaysia could see contract awards on as many as six projects. The large and promising Jerun field involves a central processing platform (CPP) with a gas export pipeline to the E11 platform and FEED bids are currently being evaluated on the nearby Rosmari/Majoram project, Worley pegged as the likely front-runner. An FPSO charter contract is being tendered for the Limbayong oil field development, with several regional players in the race.
Indonesia
Two fields are in the pipeline in Indonesia: the Gendalo-Gehem field, which has completed pre-FEED, and the nearby Merakes project, in which TechnipFMC was awarded an integrated EPCI contract.
Brunei
The Kelidang and Keratau fields are at the finishing stages of pre-FEED work, both being conducted by Aker Solutions. Both are looking to begin FEED soon, with the operator expected to tender for a floating production unit (FPU) and subsea facilities in 2020.
Source: RIGZONE
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