BE&R Supporting the KPS FSO – From Inception to Delivery
The KPS (Kutubu Pipeline System) Floating Storage and Offloading (FSO) facility will be replacing the ageing Kumul Marine Terminal (KMT) Platform and CALM Buoy in the next few years. The KPS condensate offloading system is critical to operation of the onshore LNG plant. The key challenge set was how to swap from an old to a new system, without interrupting the LNG plant operation. The simple solution to shut down and then take 12 months to replace the platform was not acceptable. A better solution was required.
BE&R was engaged by Oil Search, and subsequently by Santos following its acquisition of the company, to identify and deliver a robust long-term offloading system solution to replace the existing PNG offshore marine terminal assets as part of the wider US$19 billion PNG LNG development, these assets have been in operation since 2014. The new FSO will underpin long-term liquids and gas export from Papua New Guinea.
Highlights
- BE&R completed concept engineering, which included gaining stakeholder agreement on the final design: Subsea pipeline and FSO replacing Platform/CALM buoy
- Provided owners-team engineering support through Pre-FEED, FEED and execution, working within Santos project controls and governance systems as an integrated team
- Brought deep PNG region offshore expertise across design, construction, operational engineering, and readiness for the platform-to-FSO transition
- Applied BE&R conceptual delivery methods to focus effort on material risks and avoid unnecessary engineering
- Maintained continuity of key personnel to preserve project knowledge and accelerate decision-making
BE&R has worked with Santos across all phases of this project to date, culminating in the award to Malaysia’s MISC Berhad for a 15-year FSO supply, operations and maintenance contract. BE&R continue to provide engineering expertise in subsea and marine areas, and more general support for managing the project’s regulatory, operations and project planning. In particular, developing the transition plan from old platform to new FSO without interrupting LNG plant production.
Project Milestones
| Period | Project phase | BE&R contribution |
|---|---|---|
| 2018–2022 | KMT platform and CALM buoy operations | Marine operations and project engineering support |
| 2020–2021 | Concept select | Export concept definition (platform/CALM to FSO transition) |
| 2021–2022 | Pre-FEED | Owner’s engineering support |
| 2023–2024 | FEED | Owner’s engineering, discipline integration, assurance |
| 2024–2025 | Tendering and FID support | Technical input to contracting and evaluation |
| 2026 | FSO contract award (MISC Berhad) | Continued owner’s engineering and PMT support |
| 2028 (planned) | FSO operations start |
Summary
The KPS FSO project represents a significant transition in Papua New Guinea’s offshore export infrastructure, moving from legacy platform and CALM buoy systems to a modern FSO-based solution.
BE&R’s role has evolved from early operational support through to embedded owner’s engineering and PMT support, contributing to concept development, engineering definition, contracting and execution planning.
The project provides a practical example of supporting a brownfield offshore transition through disciplined engineering, continuity of knowledge and focus on operationally viable outcomes.
