BP plc’s ( BP Quick Quote BP - Free Report) floating production, storage and offloading (“FPSO”) vessel for the Greater Tortue Ahmeyim (“GTA”) project drifted off the quayside as Typhoon Muifa made landfall on China’s east coast.
The GTA project, operated by BP, is an offshore liquefied natural gas projecton the maritime borders of Mauritania and Senegal. The FPSO is being developed at the COSCO shipyard in Qidong, China. The tropical storm moved through the shipyard.
Typhoon Muifa was the strongest typhoon in the Yangtze River Delta in the past 10 years. It is the second-highest in China’s tropical cyclone classification system, with the maximum wind speed near its center reaching 42 meters per second.
The FPSO’s mooring systems were affected by the typhoon. This resulted in the vessel drifting 200 meters off the quayside. Attempts are being made to return the vessel to the quayside. No injuries have been reported during the incident.
The costs of returning the FPSO to the quayside, along with any possible damage, are likely to be covered by insurance. It is uncertain whether the incident will impact the vessel’s sail away date, which is expected in the fourth quarter of 2022. The project is designed to achieve the first gas in the third quarter of 2023 and the first LNG at 2023-end.
The project is expected to produce up to 10 million tons of liquefied natural gas per year. It will produce gas from an ultra-deepwater subsea system and mid-water FPSO vessel, which will process the gas by removing heavier hydrocarbon components. After that, the gas will be transferred to a floating liquefied natural gas facility at a nearshore hub on the Mauritania and Senegal maritime border.
Shares of the company have outperformed the
industry in the past three months. The stock has gained 6.1% compared with the industry's 0.8% growth.
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BP currently carries a Zack Rank #3 (Hold).
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