TechnipFMC has clinched a key contract valued at between $250 and $500 million in support of Petronas’ Limbayong deepwater development offshore Malaysia. The contractor will provide front-end engineering design and integrated engineering, procurement, construction, installation, and commissioning of the subsea production system, umbilicals, risers, and flowlines for the project.
The contract covers the development of 10 deepwater wells and their tieback to the Limbayong floating production storage, and offloading (FPSO) unit in Malaysia. TechnipFMC will design, manufacture, deliver, and install subsea equipment, including subsea trees, manifolds, umbilicals, flexible risers, flowlines, jumpers, and other associated subsea hardware for the project.
The project will be executed from TechnipFMC’s Kuala Lumpur office, which will leverage its local manufacturing plants in Malaysia.
Limbayong lies in 1000 m of water on Block J offshore Sabah, which also hosts the Gumusut oil field.
“[TechnipFMC] FTI continues to show that they’re the 800-lb gorilla in the subsea jewelry space as the team continues to snare market share,” analysts with Tudor, Pickering, Holt & Co. (TPH) wrote in a 23 February research note. “We fully understand that we’re not likely to see a massive demand ramp for deepwater/offshore projects, but we’ve also seen the competitive landscape in the space erode and we’d argue numerous FTI competitors aren’t attacking the subsea equipment market with the same vigor that they once did, save for maybe [Dril-Quip] DRQ.”
Petronas canceled a tender related to the Limbayong FPSO last summer. A new tender round for the rights to provide the unit is ongoing.
Geosciences firm Benthic completed a geotechnical investigation of the Limbayong field about 2 years ago, and in advance of the development plan.