Sembcorp Marine Rigs & Floaters Pte. Ltd. has been chosen to modify, repair, and extend the life of the Petrojarl Varg floating production, storage, and offloading vessel, which will anchor development of Cheviot oil field and satellites in the UK North Sea.
The wholly owned subsidiary of Sembcorp Marine Ltd. will conduct detailed engineering, fabrication, installation, and integration of the topside process skid; overhaul the existing internal turret and power generation; and repair and do life-extension work on the hull, tanks, and various systems onboard.
The engineering, procurement, and construction contract with Varg LLC, a wholly owned subsidiary of Teekay Offshore Partners LP, Hamilton, Bermuda, is estimated to be worth $166 million.
The agreement will not take effect until the field operator, privately owned Alpha Petroleum Resources Ltd. of Guildford, UK, completes debt arrangements with a consortium of lenders and receives government approvals for its final development plan.
Cheviot formerly was named Emerald field, which was abandoned after recovery of only 8% of the original oil in place. Alpha plans to develop oil reserves at Cheviot and satellite Peel fields and the gas caps of Cheviot and satellite Padon field.
It estimates future recovery of at least 55 million bbl of oil and 120 bcf of natural gas.
The FPSO work is scheduled to be complete in July 2020.