United Kingdom – Dagang NeXchange Berhad, through its subsidiary Ping Petroleum UK, has signed a Memorandum of Understanding with Cerulean Winds to begin a collaborative effort to deliver a dedicated offshore floating wind turbine for the Avalon Development in the Central North Sea, UK.
According to the Agreement, Ping and Cerulean Winds intend to create a Joint Venture business to deploy and manage the floating wind turbine that will power the Sevan Hummingbird FPSO vessel that Ping purchased in early July.
Ping seeks to minimize the use of diesel and fuel gas as well as associated greenhouse gas emissions in the UK waters by connecting the FPSO to a dedicated floating offshore wind turbine. One of the first oil and gas production facilities to achieve the UK Government’s emissions reduction targets set forth in the North Sea Transition Deal in March 2021 will be the innovative and ground-breaking project.
FPSO – wind turbine integration
Additionally, Ping and Cerulean Winds will make an effort to come to an agreement with the JV company regarding the power purchase agreement for the Avalon Development.
In order to integrate the FPSO with the offshore wind turbine for the Avalon Development, Ping is currently refining its concept, according to DNeX, with the approval of the Field Development Plan and the Final Investment Decision (“FID”) anticipated for later this year. Production from the Avalon field is anticipated to start up by mid-2025, with a total estimated recovery of 23 million barrels of oil.