Modec wins FPSO deal for one of world’s largest deep-water discoveries

March 13, 2019

A contract to design and build and FPSO for one of the world’s largest deep-water oil discoveries has been awarded to Japanese firm Modec. The FPSO is for the SNE field offshore Senegal, operated by Woodside Energy.

The SNE deep-water oilfield is expected to be the West African country’s first offshore development, located around 60 miles off the coast of the capital city, Dakar. The field is in the Rufisque, Sangomar and Sangomar Deep Blocks, which cover a combined area of 7,490km² within the Senegalese portion of the Mauritania-Senegal-Guinea Bissau Basin.

It is expected to be at least 560 million barrels of oil recoverable from the SNE discovery.  The FPSO Modec has been trusted to design and build will be able to produce around 100,000 bpd, with first oil targeted for 2022. The value of the contract is yet to be disclosed, however, industry experts believe it is of significant value.

The SNE field is operated by Woodside with a 35% stake. Woodside has partnered with Cairn Energy Senegal, FAR Limited and Petrosen, holding, 14%, 15%, and 10% stakes respectively. The companies are working together under a production sharing contract.

The front-end engineering design contract (FEED) is described by Woodside CEO Peter Coleman as an important milestone as the joint venture now can focus on completing the technical and commercial activities required to support FID. Final investment decision is targeted for mid-2019.

The SNE oilfield was discovered when Cairn drilled the first deep-water wells offshore Senegal in 2014 and made two basin opening discoveries, which turned out to be the largest oil discovery of the year.

Since 2014 the Senegal region has evolved from a frontier basin to an emerging oil play attracting the attention of the world’s largest operators. Cairn farmed-in as the operator to its three blocks offshore Senegal in 2013 when they acquired a 65% interest in the three blocks with a combined acreage of 7,000 km2. Since 2013 Cairn has operated three drilling programmes and has now successfully laid the foundation for a multi-phase development plan of the SNE field.