ARCO LETS S. CHINA SEA PIPELINE CONTRACT

ARCO China Inc. has awarded a construction contract for a 440 mile, 28 in. gas pipeline from China's Pearl River estuary to Yacheng 13-1 gas field off Hainan Island in the South China Sea. A joint venture of European Marine Contractors Ltd. (EMC), London, and Saipem SpA of Italy will lay the line in EMC's first effort outside Europe. ARCO China operates Yacheng 13-1 field in 300 ft of water. Other participants in the gas project are China National Offshore Oil Corp. and Kufpec (China)

May 3, 1993

2 min read

ARCO China Inc. has awarded a construction contract for a 440 mile, 28 in. gas pipeline from China's Pearl River estuary to Yacheng 13-1 gas field off Hainan Island in the South China Sea.

A joint venture of European Marine Contractors Ltd. (EMC), London, and Saipem SpA of Italy will lay the line in EMC's first effort outside Europe.

ARCO China operates Yacheng 13-1 field in 300 ft of water. Other participants in the gas project are China National Offshore Oil Corp. and Kufpec (China) Inc.

The offshore project is valued at $1.2 billion. Construction contract value was not disclosed.

Beginning in January 1996, the line will move as much as 336 MMscfd of gas to Hong Kong for delivery to Castle Peak Power Co.

EMC's Semac 1 semisubmersible lay vessel will move from the North Sea to begin work in December. Project completion is scheduled for summer 1994.

EMC said the ARCO China line will be the area's first offshore infrastructure and the second longest offshore pipeline in the world. It will be exceeded only by the 510 mile, 40 in. Zeepipe installed by EMC in 1991-92 between Sleipner platform in the Norwegian North Sea to Zeebrugge, Belgium (OGJ, May 4, 1992, p. 94).

As part of the ARCO China project, Brown & Root Marine is carrying out engineering, procurement, and project support services for the offshore facilities and ancillary shore facilities at Hong Kong and Hainan Island.

An eight leg process platform, bridge-linked to a 16 slot wellhead platform, will be installed 60 miles off Hainan Island.