Deal signed for floating LNG project

SHANGHAI, China - Wison Offshore & Marine (“Wison”) announced that it has signed a memorandum with KBR, Inc. (NYSE: KBR) for cooperation on a 1.5 MPTA Floating LNG (FLNG) liquefaction unit in Papua New Guinea.

Both parties will associate and collaborate with each other on a mutually exclusive basis for the above-mentioned FLNG project of Kumul Petroleum Holdings Limited from PNG.

Wison has a proven track record in the delivery of the world’s first barge-based FLNG. In September 2016, Wison successfully completed its performance test at the Wison yard in Nantong, China. This marked for the first time in history LNG had been produced on-board a floating facility. It was also be the world’s first gas trial for a floating liquefaction unit before sail-out.

As a global provider of differentiated professional services and technologies, KBR has demonstrated strong expertise across onshore LNG and FLNG solutions, existing LNG plant and receiving terminal expansions and LNG regasification and distribution solutions. In August 2017, KBR announced it was awarded a contract by Kumul Petroleum Holdings Limited for the conceptual development and feasibility study services for an energy hub in the Kikori region of the Gulf Province of PNG.

CEO of Wison Offshore & Marine, Ying Cui, said: “We’re looking forward to a fruitful cooperation between Wison and KBR.

“We’re confident that the combination of both parties’ strengths will create the best value for our clients by providing them with more cost-effective and quality solutions to lower the overall investment of FLNG project.”

KBR President, Asia Pacific, Greg Conlon, said: “KBR is very pleased to be associated with Wison Offshore & Marine in developing a significant nation-building project for Papua New Guinea and looks forward to further strengthening our relationship with Wison.”

Kumul Petroleum Managing Director, Wapu Sonk, commented that he was pleased to see a PNG dedicated alliance between one of the world’s largest and specialised FLNG engineering companies, KBR, with the world’s leading FLNG construction company Wison Offshore and Marine.

“With the current conceptual studies for the Kumul LNG project planned for completion by the end of the year, the seamless and integrated relationship between engineer and constructor is paramount in reducing the project execution risk.

“Should the business case for the project prove to be viable and in the interest of the people of PNG, this alliance between KBR and Wison will give Kumul Petroleum an experienced and very capable development option,” Sonk said.

(Greg Conlon, KBR President, Asia Pacific, and Ying Cui, CEO of Wison Offshore & Marine, signing the memorandum on November 2)

Press release