TechnipFMC PLC said Thursday it had won a “significant” contract from Chevron Corp for a recently approved project to expand the Gorgon domestic and liquefied natural gas (LNG) project in Western Australia.
The integrated energy tech company will deliver its Subsea 2.0 configure-to-order suite of products for the Gorgon Stage 3 project.
“This contract marks the introduction of the first seven-inch series of Subsea 2.0® horizontal subsea trees”, TechnipFMC said in a press release. “In addition, TechnipFMC will deliver flexible jumpers designed to increase production rates and provide flow assurance for gas applications”.
TechnipFMC values a “significant contract” at $75-250 million.
“We are proud to continue our 20-year partnership with Chevron on the Gorgon development through this latest opportunity”, said TechnipFMC president for subsea Jonathan Landes.
Last week Chevron announced a AUD 3 billion ($2 billion) final investment decision to proceed with Gorgon Stage 3.
The first in a planned series of tiebacks, Gorgon Stage 3 will develop the Geryon and Eurytion fields in the Greater Gorgon Area by connecting them to existing subsea gas gathering infrastructure and processing facilities on Barrow Island, according to an online statement by the Australian unit of Gorgon operator Chevron.
Six wells are to be drilled in the two fields, located about 100 kilometers (62.14 miles) northwest of the island in waters around 1,300 meters (4,265.09 feet) deep.
“The development involves the installation of three manifolds and a 35-kilometer production flowline among other associated infrastructure”, Chevron Australia said in the statement December 5.
Chevron Australia president Balaji Krishnamurthy said, “Gorgon Stage 3 is a cost-competitive development which will optimize existing infrastructure and complement the well-progressed Jansz-Io Compression Project and previously completed Gorgon Stage 2 infill development”.
Gorgon currently has a declared domestic production capacity of 300 terajoules per day, catered to the Western Australian market, and an export capacity of 15.6 million tonnes of LNG per year, targeting the Asia-Pacific market.
Currently, feedgas comes from the Gorgon and Jansz-Io fields in the Carnarvon Basin.
Two years ago Chevron started up Gorgon Stage 2, under which 11 more wells were developed in the Gorgon and Jansz-Io fields and offshore pipeline and undersea structures connected to existing gas processing facilities, as announced by Chevron Australia June 7, 2023.
Chevron operates Gorgon with a 47.33 percent stake. Exxon Mobil Corp owns 25 percent, Shell PLC 25 percent, Osaka Gas Co Ltd 1.25 percent, MidOcean Energy one percent and JERA Co Inc 0.42 percent.
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