Market Report: TMC Compressors to Supply marine compressed air system to Woodside’s Sangomar FPSO

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SENEGAL

Oslo-based offshore compressor firm TMC Compressors has won a contract to supply the marine compressed air system for Woodside’s Sangomar Floating, Production, Storage, and Offloading vessel (FPSO) to be deployed offshore Senegal. TMC will deliver a large marine compressed air system to the FPSO, which is currently undergoing conversion from a very large crude carrier to an FPSO at COSCO shipyard in Dalian, China.

TMC’s marine compressed air system for the FPSO will consist of large- capacity service and instrument air compressors with associated air dryers and filters. TMC has not disclosed the value of the contract. The marine compressed air system will be manufactured in Europe and delivered to COSCO’s shipyard in Dalian, China. Once completed, the FPSO, named FPSO Léopold Sédar Senghor after Senegal’s first president from 1960 to 1980, will be deployed at the Sangomar (formerly SNE) field located approximately 100km south of Dakar, Senegal. Japan’s MODEC is responsible for supplying the FPSO, while Woodside is the operator of the Sangomar field development. Scheduled for delivery in early 2023, the FPSO will be permanently moored at a water depth of approximately 780 meters. It will be capable of processing 100,000 barrels of crude oil bpd,130 million standard cubic feet of gas per day, 145,000 barrels of water injection per day and will have a minimum storage capacity of 1,300,000 barrels of crude oil.

NIGERIA

President of Nigeria H.E. Mohamadu Buhari has directed the Nigerian National Petroleum Corporation (NNPC) to be incorporated as a limited liability company with the Corporate Affairs Commission of Nigeria in line with Section 53(1) of the Petroleum Industry Act 2021 (PIA). President Buhari said incorporation should be within six months of commencement of the Act in consultation with the Minister of Finance on the nominal shares of the company. The President in agreement with the PIA approved the appointment of the Board and Management of NNPC Limited with effect from the date of incorporation company.

NNPC Group Managing Director Alhaji Mele Kyari was appointed Chief Executive Officer, Umar I. Ajiya appointed Chief Financial Officer. Senator Ifeanyi Ararume was appointed Chairman of the NNPC board according to a press release by the Special Adviser to President Buhari on Media and Publicity, Femi Adesina. Speaking on the ongoing transformation of the company Alhaji Kyari said, “The provision of the law clearly states that the corporation will be transformed into a Company and Allied Matters Act company. The meaning of this is that the company will just be another privately-owned company, in a sense. This company will pay taxes, royalties, and dividends to its shareholders. This isn’t the situation today because the corporation has no such obligation. This has stalled its development, its growth and its prosperity.”

The Minister of State for Petroleum Resources, H.E. Chief Timipre Sylva, at the Gastech conference in Dubai, said that Nigeria has requested that the Organization of the Petroleum Exporting Countries (OPEC) reviews Nigeria’s production quota. He noted that the technical problems that had affected output would soon be resolved. Nigeria’s quota of crude oil excluding condensates is 1.614 million barrels per day (bpd) for September and is scheduled to rise by roughly 17,000 bpd each month, in line with the OPEC+ plans to ease back on production cuts implemented in the pandemic. Nigeria expects to produce 1.88 million bpd of crude oil in 2022 and will use a benchmark oil price of $57 per barrel for its budget planning, according to a document approved by the Senate.

GLOBAL

On September 23, crude oil prices were up, continuing an upward trend as the latest U.S. oil supply data showed a bigger-than-expected draw. Signs of a tight spot market in the U.S. from the beginning of the colder autumn season also aided demand. The U.S. West Texas Intermediate crude futures were up $1.07 at $73.30 per barrel, while Brent crude futures were up 1.4%, at $77.25. The U.S. Energy Information Administration’s weekly report for September 22 showed a decrease in crude oil inventories by 3.5 million barrels from the previous week to 414.0 million barrels.

Oil prices drew support as concerns eased over a possible near-term dollar bonds default by Chinese property developer China Evergrande and the outcome of China’s first-ever auction of crude from its strategic reserves later Friday. Crude inventories have declined from Europe to the U.S., even as OPEC+ adds more supply and comes as surging natural gas prices are expected to boost demand for oil products in power generation over winter. Iraq’s oil minister said OPEC+ was working to keep crude close to $70 per barrel as the global economy recovers. Another OPEC+ and its allies are set to meet on October 4.

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