8.1.1. Construction milestones

The estimated duration of the construction phase is 2,5 years. The main construction milestones are:
1. Construction commence (Day 1)
2. Drilling Phase completed
3. Subsea infrastructure installed
4. FPSO hooked up
5. Pipeline completed

8.1.2. Contracting

The project is divided in eight main contracting packages. Experienced contractors to execute each package are identified. One of the main efforts was to increase the local content by finding suitable contractors in Vietnam or by adapting the design so that the execution can take place in Vietnam. The targeted local content is in the order of 70 %.

Contract 1: Drilling and completion
Drilling contractors will be hired for drilling, well completion and workover operations. MODUs will be used, semi-submersibles, drillships and STAD. The day rate is about $250,000. Possible drilling contractors are:

  • Ensco
  • Maersk Drilling
  • Transocean Ltd.
  • Noble Drilling
  • Stena Drilling

Contract 2: Engineering, Procurement and Installation of FPSO
For building the FPSO, the local shipyards should be used. Such are Dung Quat Shipyard (DQS) and Hyundai-Vinashin shipyard. DQS was established on 2006. It is located at Binh Dong, near to Ho Chi Minh City and it is a subsidiary company of PetroVietnam. It has enough experience on building tankers and FSOs of up to 160,000 DWT. The shipyard’s facilities include a 380 x 85 x 14 m drydock (400,000 DWT capacity) with 350 t crane capacity. Further, a new 510 x 110 x 14 m drydock with 700 t crane capacity is under construction. Hyundai-Vinashin has similar capabilities.

There are also many alternative shipyard options in Singapore, South-Korea, and Malaysia. The main nearby shipyards that specialize in offshore projects are:

  • Keppel Shipyard, Singapore
  • Jurong Shipyard, Singapore
  • MHB, Malaysia
  • Hyundai Heavy Industries, South-Korea
  • Daewoo Shipbuilding & Marine engineering, South-Korea
  • Samsung Heavy Industries, South-Korea

Our focus will be in employing Dung Quat or Hyundai-Vinashin Shipyard in order to increase the local content of the project and to reduce the cost of transporting the FPSO to the site.

Contract 3: Turret Engineering, procurement and construction
The design/engineering of the (detachable) turret system will most likely be done by an European engineering company such as SBM or Bluewater. The fabrication will be done either in Singapore or South Korea. Then the turret will be transported to Vietnam and integrate into the FPSO. The buoyant part of the turret is installed offshore. 

Contract 4: Subsea system
Limited numbers of companies can manufacture subsea equipment. FMC Technologies, Cameron, General Electric, Aker Solutions are capable of delivering complete subsea systems. Amongst them, FMC and Aker have the strongest presence in the Vietnam. However, all companies should be contacted to get their technical and economical proposal.
Subsea equipment is technically complicated and requires high level of specialty. Thus, the manufacturing cannot take place in Vietnam. A possible way to increase the local content of the subsea part of the development is to arrange that the assembly of the parts takes place in Vietnam.

Contract 5: Risers/Flowlines
The flowlines and jumpers and be fabricated in Vietnam by a steel manufacturer. The flexible risers will be provide by Technip or NKT.

Contract 6: Pipeline to shore
The construction of a new pipeline is a big part of the investment. In order to meet the local content target this contract should be awarded to the Vietnamese company PVS (Petrovietnam construction joint stock company) since it is the only capable local contactor.

Contract 7: Topsides
The module of the process facilities will be fitted in the FPSO at the shipyard. The modules can be fabricated at Vietnam by PVC- MS (the metal structures department of PVC). The necessary process equipment will be supplied by reputable manufactures from around the world

Other installation contracts
It is preferable that the installation is part of the above-mentioned contracts. If this is not possible, suitable installation contractors will be employed.