Zhejiang Jinzhou Pipeline Technology (Zhejiang Jinzhou) has secured a 278 million yuan (US$40.4 million) contract to deliver steel pipes for CNOOC Ltd’s Dongfang 13-2 high pressure high temperature (HPHT) gas field.
Under the contract, Zhejiang Jinzhou will provide 48 000 t of pipe by 31 August. 3153 t, 12 000 t and 13 000 t are expected to be delivered by 31 May, 30 June and 31 July, respectively.
CNOOC Ltd will pay for Zhejiang Jinzhou’s services in three tranches, offset by a security guarantee paid by the contractor to compensate the NOC in the case of unsatisfactory service or default.
During 1H16, Zhejiang Jinzhou recorded a 52.54 million yuan (US$7.6 million) net profit, down 3.54% from the same period of 2015. The Chinese pipeline supplier has struggled to maintain its profits as midstream operators became exposed by rapid infrastructure expansions amidst slowing economic growth.
CNOOC Ltd drilled the Dongfang 13-2 appraisal probe in 2012, encountering a 35 m gas pay at water depths of 65 m. Flow tests averaged 42.4 mmcf (1.2 mcm) per day. Dongfang 13-2 is situated in an HPHT reservoir north of the central sag of the South China Sea in the offshore Yinggehai basin.
As of 2015, the field development plan (FDP) for Dongfang 13-2 featured 248.8 km of subsea pipeline, a new wellhead platform and a new central processing platform. The infrastructure was designed to connect with China National Petroleum Corp.’s (CNPC) gas terminal at Zhuhai in Guangdong, which was launched in May 2014 and pumped around 1000 tpd of LPG as of June 2014, according to ICIS data.
Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/28042017/zhejiang-jinzhou-secures-cnooc-contract/