Source: Hyundai Heavy Industries, BP
Hyundai Heavy Industries (HHI) signed a US $1.2 billion contract with BP (NYSE:BP) to build a floating, production, storage and offloading unit (FPSO) for the Quad 204 Project West of Shetland. The sanction for the project is expected to be given in early May 2011.
The FPSO will be able to produce 130,000 barrels of oil and 2.2 million cubic meters of gas per day. The unit will have storage for 1.06 million barrels of oil and will measure 270 meters long and 52 meters wide.
The Quad 204 FPSO will be delivered in the early of 2015 to develop the Quad 204 Area in the Schiehallion field, west of the Shetland Islands in the North Sea. The new unit will replace the existing Schiehallion FPSO.
Hyundai Heavy will undertake all the project work covering engineering, procurement and construction with optional transportation and commissioning assistance. The Quad 204 FPSO requires high-end design and high quality construction to meet the strict safety and environmental regulations for FPSOs operating in the 17.5 meters swells of the North Sea.
Quad 204 Project
The Quad 204 project will replace the existing Schiehallion FPSO with a new build FPSO, producing from the Schiehallion and Loyal fields located in deepwater in the west of Shetland area.
The new build FPSO will deliver incremental reserves with increased operating efficiency and extend the field life to 2035-plus. The existing subsea infrastructure will be re-used and upgraded and up to 25 new infill wells will be drilled.
BP is the operator of the Quad 204 Project with a 33.35% stake. Other stakeholders are Royal Dutch Shell (33.35%), Amerada Hess (15.67%), Statoil (5.88%), Murphy Oil Corporation (4.84%) and OMV (4.84%).