Press Release: CNOOC selects APL's system for PANYU FPSO

China National Offshore Oil Corporation (CNOOC) subsidiary, China Offshore Oil Nanhai West (CONHW) has awarded Advanced Production and Loading AS (APL) an EPCI contract for the Single Point Mooring (SPM) system to the PANYU FPSO. APL will supply a STP system for permanent mooring of the FPSO for the field lifetime of 10 years.

The PANYU field will be operated by Devon Energy China Ltd. The FPSO will be constructed and operated by CONHW. The Panyu 4-2 and 5-1 oil fields are located in the South China Sea approximately 200 km South of Hong Kong in the Pearl River Basin.

Panyu 4-2 is located approximately 19 km west of Panyu 5-1. Oil will be produced from two wellhead platforms. Water depth at the FPSO location is 105m. The FPSO vessel is a newbuild 160 000 DWT vessel and will be moored in a passive mode. Mooring and vessel are designed to withstand the 100-year typhoon of 13.1 m significant wave height and wind speeds up 200 km/h.

APL has previously delivered three STP systems, one in 1997 for the Statoil operated Lufeng also in the South China Sea, one in 1998 for the Enterprise operated Pierce field in the UK North Sea and one in 2001 for the CNOOC operated Wenchang field in the South China Sea.

APL's scope for CONWH's PANYU FPSO For the PANYU field, APL will supply a complete STP system consisting of the following main components:
- STP buoy with integrated turret
- STP Vessel equipment package
- STP Swivel - Complete mooring legs (chain/ wire)
- Anchors
- Risers

In addition, APL will provide:
- Complete Mooring Analysis
- Vessel shape optimisation
- Offshore installation and commissioning

System completion is scheduled for spring 2003 and total contract value is in the area of 33 Million US$

Proven Technology STP is based on technology components from the proven STL system. APL has supplied fourteen buoys of this type for eleven different field applications. Fulmar STL system was the first, set into operation already in 1993.

Advanced Production and Loading - APL APL has since the start in 1993 had a significant growth and has today 65 employees in Arendal and 5 in the offices in Houston and Paris. The company is located in own offices on the waterfront in sunny Arendal.

For further details, please contact:
Dagfinn Tegnander, Project Manager PANYU STP System +4737002509
Nordine Benbernou, VP Business Development Africa & Far East +33 680 756836
Fredrik Major, VP Business Development Europe & FSU +47 37002519