Maersk Set to Line up Tyra Tenders
Monday 26 September 2016
Maersk Oil is set to issue bid documents early next year for its Dkr30 billion ($4.48 billion) Tyra gas redevelopment project off Denmark, assuming it gets vital financial assistance from the government in Copenhagen.
The fabrication fare this seven-platform North Sea project could generate is already whetting the appetites of work-hungry contractors in Europe, the Middle East and Asia, said market sources.
Called Tyra East-West, the project involves a gas processing platform, an accommodation platform, four wellhead platforms, two riser platforms and five bridges.
This complex will largely replace the field’s existing offshore facilities, which are slowly sinking due to seabed subsidence.
Pre-qualification responses were submitted to Maersk last month, said sources, with companies on the cusp of hearing whether they have passed muster.
Up for grabs will be four engineering, procurement and construction contracts, with the prime package focused on the process deck, tipping the scales at 12,000 to 13,000 tonnes, said one interested party.
The second package takes in the 3000-tonne accommodation deck.
Maersk’s third offering covers decks for the wellhead and riser platforms — sources said the existing jackets will be re-used — plus bridges.
Completing the quartet is a contract centred on two jackets for the gas processing and accommodation platforms, with weights in the region of 7500 tonnes and 4000 tonnes, respectively.
CB&I is carrying out front-end engineering and design work, which is expected to wrap up by the end of this year.
However, the key issue that must be resolved is Maersk’s demand that Denmark’s government offer financial help to the project, threatening to shut-down Tyra in 2018 if this is not forthcoming.
Maersk’s demands on Tyra also appear to be part of a government review of Denmark’s oil and gas sector, also set for completion by the end of 2016.
Even if the governmentmeets Maersk’s demands, Tyra is expected to face temporary closure in 2019 as the redevelopment project proceeds.
A Maersk spokesman said: “Dialogue with relevant authorities on framework conditions for Tyra is ongoing. Internally, we have a project team working on various possible solutions which include talking to potential suppliers. But no decisions have been made yet.”
While this dialogue is underway, one market player said that “on the project itself, Maersk is full-steam ahead on practical work”.
One source said Maersk’s target had been to issue Tyra’s invitations to tender next month but the widespread view is that the timing has slipped to the first quarter of 2017.
“Negotiations between Maersk and the government are not progressing well so invitations to tender will be issued next year,” one project watcher predicted.
If this remains the schedule, responses would be due back with Maersk in the second quarter, leading to contract awards in the third quarter.
With construction activities lasting around three years, production at Tyra could restart in 2020-2021.
It is understood that a veritable who’s who of fabrication yards outside the Americas have been manoeuvring to get on Maersk’s contracting radar.
As well as Europe, “the Maersk team has been travelling for weeks, including in the Middle East and Far East”, a source said.
Possible contenders are still formulating their bidding strategies, which could range from focusing on one package to bidding for all four.
While it is very early days, the broad view from market sources is that Singapore-based Sembcorp Marine Offshore Platforms and Heerema in the Netherlands will be well-positioned because Maersk is said to be happy with progress they are making on EPC contracts for its Culzean high- pressure, high-temperature project in the UK.
“Maersk will be very comfortable pulling in things from Singapore,” said one market player, with another pointing out that Heerema — which could still bid for all the work — will be well-placed for the living quarters deck, smaller platforms and two jackets.
The Culzean incumbents will not have their own way on Tyra because South Korea’s Daewoo Shipbuilding & Marine Engineering, Hyundai Heavy Industries and Samsung Heavy Industries are all gunning to land as much work as possible.
Informed sources said at least two of the South Korean trio could chase all four packages, a situation that reflects the dire state of the offshore market.
“It is one of only a few sizable projects which are expected to be out in the market in the near future,” said one South Korean source.
Nevertheless, sources expect Maersk will only want Daewoo, Hyundai and Samsung to bid for the big deck.
Also likely to enter the fray are Norway’s Kvaerner, Dragados in Spain and Italy-based Rosetti Marino.
It was was stated that Kvaerner is “aggressively" pursuing the jacket and gas deck packages because it has substantial spare capacity at its Stord and Verdal yards.
It hopes Maersk will take note of its on-time and on-budget delivery of the 22,000-tonne deck for Lundin Petroleum’s Edvard Grieg project off Norway last year.
Other project watchers suggested potential bidders may emerge in the Middle East — Lamprell, McDermott and NNPC have all been mentioned — while COOEC of China may also take part.