MODEC has received a letter of intent (LOI) for supply, charter, and operations of floating production storage and offloading (FPSO) vessel for Eni’s Area 1 project in Mexico.
Under the contract, the company will be responsible for the engineering, procurement, construction, mobilization, installation and operation of the FPSO at the Area 1 project.
MODEC has received the LOI for the contract from Eni Mexico, a wholly owned subsidiary of Eni. With five one-year extension options, the firm time charter period is 15 years.
The FPSO will be deployed in the Offshore Area 1 some 10km off the coast of Mexico at a water depth nearly 32 meters.
It will be capable of processing 90,000 barrels of crude oil per day, 75 million cubic feet of gas per day, 120,000 barrels of water injection per day and have a storage capacity of 900,000 barrels of crude oil.
The first oil production by the FPSO is slated to begin in 2021.
SOFEC, a MODEC group company, will design and supply the disconnectable tower yoke mooring system of the FPSO.
MODEC CEO and president Toshiro Miyazaki said: “We are extremely honored and proud to have been selected to provide and operate the FPSO for Eni Mexico.
“This project will continue to allow MODEC to showcase our distinguished capabilities in EPCI, charter and operations of floating production systems. We are committed to carry out this major project by cooperating closely with our client in order to contribute to the advancement of the energy industry in Mexico.”
Currently in the pre-development phase, the Area 1 field is estimated to hold 2.1 billion of oil equivalent in place (90% oil). The operatorship of the field is 100% owned by Eni Mexico.
In August, Eni received the development plan approval from the Mexico’s National Hydrocarbon Commission for the discoveries of Amoca, Miztón and Tecoalli, located in Area 1 in the shallow waters of the Campeche Bay.
Eni is expected to take the final investment decision (FID) on the development of the field in the fourth quarter of 2018,