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Industrial Highlights | Timor-Leste offshore project moves toward EPCI phase with focus on FPSO development and advanced material solutions

An offshore oil development in Timor-Leste is progressing toward the engineering, procurement, construction and installation (EPCI) phase, as operator Finder Energy advances planning for its Kuda Tasi and Jahal (KTJ) fields. The project marks a significant step in revitalizing upstream activity in the region and is expected to play a key role in the country’s future oil production strategy.

Project background and strategic importance

The KTJ development is located in offshore block PSC 19-11 and is being advanced in partnership with national oil company TIMOR GAP. The fields are estimated to contain tens of millions of barrels of recoverable oil, with additional nearby discoveries offering potential for phased expansion through subsea tie-backs.

As legacy production from mature assets declines, Timor-Leste is actively promoting new offshore developments to sustain energy revenues and attract international investment. Projects such as KTJ are viewed as building blocks for broader offshore infrastructure and long-term energy security.

FPSO-based development concept and subsea architecture

The current development concept is centered on a floating production, storage and offloading unit (FPSO), with Petrojarl I FPSO expected to be redeployed as the project’s processing hub. This FPSO-based approach enables flexible and cost-effective development of marginal and mid-sized offshore fields.

The planned offshore production system is expected to include:

· Subsea wells connected via flowlines and risers

· Subsea manifolds and control umbilicals

· Integration with FPSO topside processing facilities

· Future tie-backs from nearby satellite fields

This phased development model supports scalability while minimizing upfront capital expenditure, a key consideration in today’s offshore investment environment.

EPCI readiness and offshore equipment demand

As the project moves closer to final investment decision (FID), early-stage EPCI preparation is underway. This includes engagement with engineering contractors, alignment of procurement strategies, and reservation of long-lead subsea equipment.

Key equipment expected to be required for the KTJ offshore project includes:

· Subsea production systems (trees, manifolds, umbilicals)

· Floating production systems (FPSO modules, separation units, storage tanks)

· Offshore drilling and completion equipment

· Heat exchangers and pressure vessels for topside processing

Given ongoing supply chain constraints in the offshore sector, early procurement planning is critical to maintaining project timelines.

Material selection for offshore corrosion and durability

Material selection plays a crucial role in offshore oil and gas projects, particularly in environments where produced fluids may contain CO₂, chlorides or sour components such as H₂S. Engineers must balance mechanical strength, corrosion resistance and cost efficiency when selecting materials for both subsea and topside systems.

Common material solutions for offshore developments include:

· Carbon steel for structural and low-corrosion applications

· Stainless steel and duplex stainless steel for enhanced corrosion resistance

· Nickel-based alloys for high-pressure and highly corrosive environments

However, increasing attention is being given to hybrid material solutions that optimize both performance and cost.

Clad plate applications in FPSO topside equipment

In this context, clad plate materials are expected to play an important role in the KTJ project, particularly within FPSO topside processing systems.

Clad plates combine a carbon steel base with a corrosion-resistant alloy layer—such as stainless steel, duplex stainless steel or nickel alloys—providing a cost-effective solution for offshore corrosion challenges. This approach allows operators to achieve long-term durability without the high cost of solid alloy construction.

Within the Timor-Leste offshore project, clad plate applications are likely to include:

Process vessels

Clad plates are widely used in critical process equipment such as:

· Three-phase separators

· Heater treaters

· Stabilization columns

These vessels are exposed to produced fluids that may contain corrosive components, making internal corrosion protection essential.

Heat exchangers

Heat exchangers are a key component of FPSO topside systems. Clad materials are commonly applied in:

· Shell construction

· Tubesheets

· Flanged connections

This is particularly important in systems involving seawater cooling or aggressive process streams.

Produced water and storage systems

Clad plate solutions are also suitable for:

· Produced water treatment units

· Storage tanks and slop tanks

These applications require corrosion resistance while maintaining cost efficiency for large structures.

Offshore piping and subsea systems

While clad plates themselves are not used directly in subsea pipelines, similar technology is applied through clad or lined pipes, which provide internal corrosion resistance for flowlines transporting hydrocarbons from subsea wells to the FPSO.

Industry trend toward cost-optimized corrosion solutions

The adoption of clad materials reflects a broader trend in offshore engineering: optimizing lifecycle costs rather than focusing solely on initial capital expenditure. By combining structural strength with targeted corrosion resistance, clad solutions reduce maintenance requirements and extend equipment service life.

This approach is particularly relevant for FPSO-based developments, where intervention and repair costs are significantly higher than onshore facilities.

Outlook for Timor-Leste offshore development

With EPCI preparations progressing, the KTJ project is moving closer to FID, potentially positioning it as one of the next active offshore developments in Southeast Asia. If sanctioned, the project could deliver first oil within the next few years and contribute to the long-term growth of Timor-Leste’s upstream sector.

At the same time, the project highlights the increasing importance of advanced materials—such as clad plates and corrosion-resistant alloys—in enabling economically viable offshore developments in challenging environments.

Your Best Partner for Clad Plate & High Alloys: Fugo Tech

Nanjing Fugo New Material Tech Co., Ltd. (Fugo Tech) is an ISO 9001 and PED 2014/68/EU certified manufacturer specializing in Clad Material (Explosive Clad Plates & Rolled Clad Plates/Clad Dish Heads/Clad Tube Sheets) and Titanium, Nickel Alloy, Copper Alloy and Stainless Steel products (Pipe/Tube/Fitting/Flange/Forging) which are widely used in the Heat Exchanger, Pressure Vessel, Reactor, Column, Tower, and other process equipment.

Fugo Tech offers different material combinations of Clad Plate (Explosion-welded clad plate/composite plate & Rolled-welded clad plate/composite plate) , and also offers a wide range of materials, including Titanium, Nickel Alloy, Copper, Cu-Ni, and Stainless Steel, along with custom processing services (Tube Sheet drilling, and Dish Head forming) for Oil & Gas, Petrochemical, Chemical, Energy, Paper & Pulp, Marine, Shipbuilding, Environment, Metallurgy, and New Energy Vehicles, with a strong focus on high-performance Clad Plate & Titanium & Nickel Alloy & Stainless Steel solutions.

 

For any new requirement, please contact: sales@fugo-tech.com

www.fugo-tech.com

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