Ping Petroleum UK PLC (Ping), a subsidiary of DNeX, has inked a Memorandum of Understanding (MoU) with Cerulean Winds to kick start a partnership initiative in delivering a dedicated offshore floating wind turbine for the Avalon Development in the Central North Sea, UK.
Ping and Cerulean Winds plan to establish a Joint Venture (JV) company to deploy and operate the floating wind turbine, which will power the Sevan Hummingbird Floating Production Storage and Offloading (FPSO) vessel acquired by Ping in early July this year, under the said agreement.
The signing of the MoU was held in London and observed by Kwasi Kwarteng, Secretary of State for Business, Energy and Industrial Strategy, Government of UK.
This pioneer project is set to be one of the first oil and gas production facilities to meet the UK Government’s emissions reduction targets agreed in the North Sea Transition Deal in March 2021, as it innovatively connecting the FPSO to a dedicated floating offshore wind turbine to power the facility thus minimising diesel and fuel gas usage as well as associated Greenhouse Gas emissions in the UK waters.
Ping and Cerulean Winds will also endeavour to reach terms on the power purchase agreement for the Avalon Development with the JV company.
“Ping is currently refining its concept to integrate the FPSO with the offshore wind turbine for the Avalon Development, with Field Development Plan approval and Final Investment Decision (FID) targeted for later this year,” Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, Group Managing Director of DNeX said.
“Ping is finalising conceptual development planning after preparing Front End Engineering works to submit the Avalon Field Development Plan. In addition, Ping will apply for an innovation licence under the Innovation and Targeted Oil and Gas Decarbonisation (“INTOG”) licensing from Crown Estate Scotland. The licence would allow us to operate and deploy the
dedicated floating offshore wind turbine for the Avalon Development,” he added.
The planned development enables Ping to expand and diversify its portfolio of producing assets while supporting the UK’s energy security and Net Zero targets.
