Set to Begin Hydrocarbon Production, says Shapoorji Pallonji Oil & Gas
Shapoorji Pallonji Oil & Gas Pvt Ltd (SP O&G), Floating Production Storage and Offloading Units (FPSOs) specialist, said that it has achieved a significant milestone of ‘hook-up’ for its FPSO Armada Sterling V at KG 98/2 block, offshore Kakinada.
January 04, 2023. By Manu Tayal
FPSO Armada Sterling V reached Cluster 2 of ONGC’s KG 98/2 block on the east coast of India on December 15, 2022, having left from Sembcorp Marine shipyard, Singapore.
On December 28, 2022, India’s largest FPSO was safely hooked up. She is now prepared to receive hydrocarbons from the field for processing. Despite challenges due to inclement weather, hook-up was achieved in one of the fastest lead times.
The FPSO has a processing capacity of about 60,000 bpd of liquid and 3 MMSCMD of gas. She is owned by SP O&G’s 70:30 joint venture with Malaysia’s Bumi Armada group. This is Shapoorji Pallonji’s fourth FPSO, and its third FPSO for Indian waters.
With the successful conclusion of this hook-up activity, SP O&G has achieved a critical milestone and is now ready to commence commissioning of the FPSO. ONGC is expediting its sub-sea activities and is expected to provide hydrocarbons soon, enabling the FPSO to achieve ‘first oil’ and commence production for the nation.
The FPSO’s commissioning readiness has come at a critical point for the nation, when it is witnessing skyrocketing oil & gas prices. The FPSO’s early commissioning will assist India in reducing its energy bill at a time when this is most in need. The project has the potential of reducing India’s annual import bill by USD 4.5 billion and will be a crucial step forward in securing the country’s energy security.
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