ARCO LETS ENGINEERING CONTRACTS FOR S. CHINA SEA GAS DEVELOPMENT

June 1, 1992
ARCO China Inc. and partners have let engineering contracts for China's first big offshore gas field development, a $1.2 billion project in the South China Sea. ARCO, Kuwait's Kufpec China Inc., and China National Offshore Oil Corp. (Cnooc) let contracts for development of Yacheng 13-1 gas field southwest of Hainan Island to: The marine business unit of Brown & Root Inc. (B&R), Houston, for engineering, procurement, and support services for two platforms, to be installed in about 300 ft

ARCO China Inc. and partners have let engineering contracts for China's first big offshore gas field development, a $1.2 billion project in the South China Sea.

ARCO, Kuwait's Kufpec China Inc., and China National Offshore Oil Corp. (Cnooc) let contracts for development of Yacheng 13-1 gas field southwest of Hainan Island to:

  • The marine business unit of Brown & Root Inc. (B&R), Houston, for engineering, procurement, and support services for two platforms, to be installed in about 300 ft of water, and related onshore facilities at Hong Kong and on Hainan Island near the city of Sanya.

  • J.P. Kenny Inc., Houston, for engineering, procurement, and support services for two subsea gas pipelines: a 30 in., 480 mile line to Hong Kong and a 16 in., 60 mile line to Hainan Island.

Offshore facilities covered in B&R's contract include a process platform linked by bridge to a 16 slot wellhead platform. Together, the platforms will provide production, separation, gas dehydration, and hydrocarbon dewpoint control.

Onshore facilities include a base and gas receiving station near Sanya and a gas receiving station at Hong Kong.

Offshore and onshore installations will be self-supporting. The Sanya shore base will include a dock, barge loading facility, offices, warehouses, quarters, processing facilities, power generation, sewage treatment, and communications.

ARCO said Yacheng 13-1 production is to begin in January 1996 and peak at 330 MMcfd of gas (OGJ, Mar, 16, Newsletter). But B&R said the subsea pipelines will be capable of delivering as much as 336 MMcfd of processed gas to Hong Kong and as much as 60 MMcfd gas and gas liquids to Sanya.

Gas delivered to Hong Kong will be used to generate electrical power by a company owned by China Light & Power Co. and Exxon Energy Ltd.

Contracts for platform fabrication are expected to be let in early and mid-1993 and for onshore construction in late 1993. A second wellhead platform is expected to be needed after about 10 years of production to maintain flow rates.

Yacheng field, discovered in 1983, holds recoverable reserves estimated at 3 tcf.

Operator ARCO China owns 34.3% interest in the Yacheng 13-1 project, Kufpec China 14.7%, and Cnooc 51%.

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