Left to right: Kwasi Kwarteng, Secretary of State for Business, Energy and Industrial Strategy, Government of UK; Zainal Abidin Jalil, Executive Director of DNeX and also Managing Director of Ping Petroleum Limited; Datuk Robert Fisher, Director of DNeX and also Chairman of Ping Petroleum Ltd; Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, Group Managing Director of DNeX; and Dan Jackson, Founding Director of Cerulean Winds
KUALA LUMPUR: Dagang Nexchange Bhd
's subsidiary Ping Petroleum UK PLC has entered into a memorandum of understanding (MoU) with Cerulean Winds Ltd to explore a collaboration in delivering a dedicated offshore floating wind turbine for the Avalon Development in the Central North Sea, UK.
In a statement, DNeX said the parties plan to establish a joint venture company to deploy and operate the floating wind turbine, which will power the Sevan Hummingbird Floating Production Storage and Offloading (FPSO) vessel acquired by Ping in early July this year.
"Ping aims to connect the FPSO to a dedicated floating offshore wind turbine to power the facility thus minimising diesel and fuel gas usage as well as associated Greenhouse Gas emissions in the UK waters.
"The innovative and pioneering project is set to be one of the first oil and gas production facilities to meet the UK Government’s emissions reduction targets agreed in the North Sea Transition Deal in March 2021," it said.
Ping and Cerulean Winds will also endeavour to reach terms on the power purchase agreement for the Avalon Development with the JV company.
DNeX group managing director Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said Ping is currently refining its concept to integrate the FPSO with the offshore wind turbine for the Avalon Development, with field development plan approval and final investment decision (FID) targeted for later this year.
“Ping is finalising conceptual development planning after preparing Front End Engineering works to submit the Avalon Field Development Plan.
"In addition, Ping will apply for an innovation licence under the Innovation and Targeted Oil and Gas Decarbonisation (INTOG) licensing from Crown Estate Scotland. The licence would allow us to operate and deploy the dedicated floating offshore wind turbine for the Avalon Development,” he said.
With a total estimated recovery of 23 million barrels of oil, production from the Avalon field is expected to come on stream by mid-2025.
