Hyundai Heavy taps KBR for engineering design on BP's Quad 204 FPO West of Shetland

By Phaedra Friend Troy

Hyundai Heavy Industries has given KBR (NYSE:KBR) a letter of award to perform engineering design and procurement support services on the BP (NYSE:BP) Quad 204 Floating Production Storage and Offloading (FPSO) vessel being built for the UK waters West of Shetland.

Designed to operate in harsh weather conditions, the Quad 204 FPSO is being built for the Schiehallion and Loyal oil field redevelopment in the UK Mid Atlantic. 

These two oil fields achieved first oil in July 1998 via the Schiehallion FPSO and have produced nearly 400 million barrels of oil, but an estimated 450 million barrels of recoverable resources remain. 

The $4.8 billion redevelopment project will extend the oil production at Schiehallion and Loyal to 2035.

The new Quad 204 FPSO will be capable of processing 130,000 barrels of oil a day and storing more than 1 million barrels of oil. Additionally, the subsea facilities at the development will be upgraded to enable full development of the reservoir.

The new FPSO is scheduled to begin operations in 2015, and the upgraded subsea facilities are scheduled for production start up in 2016.

KBR has been involved in the Quad 204 project since 2008, when efforts began to select and design the FPSO. 

BP will hold a 36.3 percent ownership in the new FPSO. Project partners will be Shell with 36.3 percent, Hess with 12.9 percent, Statoil with 4.84 percent, OMV with 4.84 percent and Murphy Petroleum with 4.84 percent.

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