Williams Partners LP said Wednesday the Japanese firm, Marubeni Corp., is taking a 49% stake in its Gulfstar FPS project, the first floating production system built entirely in the United States.

The initial FPS would handle production at the Tubular Bells field in the deepwater Gulf of Mexico (GOM), which is being developed by Chevron Corp. and Hess Corp. (see Daily GPI, Dec. 7, 2012; May 26, 2011). Williams subsidiary Gulfstar One LLC is designing the FPS to process up to 200 MMcf/d of natural gas and 60,000 b/d of oil. Williams Partners, which would retain the majority stake, has set aside about $500 million for the initial FPS.

“Adding a partner like Marubeni will benefit us significantly, giving us more flexibility in capital spending as we continue to pursue attractive projects in all of our operating areas,” said Williams CEO Alan Armstrong.

The spar-based FPS is being designed with traditional three-level topsides project mated to a classic spar hull. The design would allow customers to reduce their cycle time from discovery to first production, according to the partnership.

The FPS has been under construction since late 2011 to support multiple agreements, including production handling, pipeline export, as well as gas gathering and processing services. It is scheduled to begin service in mid-2014 and would tie into Williams Partners’ eastern GOM systems. The floating system also would be capable of serving as a central host facility for other deepwater prospects in the area.

The system is the first to have all of its major components built entirely on the Gulf Coast. Fabrication is being done in Aransas Pass, TX, the topsides are being built in Houma, LA. Under the agreement Marubeni would invest in Gulfstar One LLC, which was established by Williams. Marubeni, primarily a grain trader, said it also has entered into a memorandum of understanding to jointly develop petrochemical downstream projects, as well as and oil and gas infrastructure projects, to take advantage of North American gas supplies.

The shift toward fewer — but larger — subsea tiebacks, along with increased floating production systems (FPS) “will have profound effects on the future of the subsea sector as the hardware installed evolves as a direct result of fewer gas developments and deeper, more challenging fields.”

The “next wave” of FPS developments are to be in ultra-deepwater and in more remote areas not currently connected to shallow water or onshore infrastructure, according to Quest Offshore (see Daily GPI, Nov. 2, 2012). Of the 200-plus projects being planned worldwide that potentially could require an FPS, an estimated 10% likely are to be located in the GOM, said International Maritime Associates Inc. (see Daily GPI, May 16, 2012). As of early 2012 there were 46 systems operating in the GOM, with another 21 units planned over the next four to six years.

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