Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, group managing director of Dnex, said Ping is currently refining its concept to integrate the FPSO with the offshore wind turbine, with field development plan approval and final investment decision targetted for later this year.
CYBERJAYA: Dagang Nextchange Bhd (Dnex), via its subsidiary Ping Petroleum UK Plc (Ping), has signed a Memorandum of Understanding with Cerulean Winds Ltd for a partnership initiative to deliver an offshore wind turbine for Avalon Development in the central North Sea.
Under the agreement, Ping and Cerulean Winds will establish a joint venture (JV) 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 July this year.
Ping aims to connect the FPSO to a dedicated floating offshore wind turbine that will power the facility, thus minimising costs for 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.
Ping and Cerulean Winds will also endeavour to reach terms on the power purchase agreement for the Avalon Development with the JV company.
Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, group managing director of Dnex, said Ping is currently refining its concept to integrate the FPSO with the offshore wind turbine, with field development plan approval and final investment decision targetted 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 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.
The planned development enables Ping to expand and diversify its portfolio of producing assets while supporting the UK’s energy security and net-zero targets.
Ping was also recently granted a 19-month extension by the North Sea Transition Authority to the second term of the P2006 licence containing Avalon. This allows the company additional time to optimise and gain full regulatory approval for the Avalon Field Development Plan.
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. — Bernama
