ENI and GDF-Suez combine FEED and EPC bids to speed up Indonesian Muara Bakau development
After the successfully appraisal of the Jangkrik natural gas discovery, ENI and GDF-Suez intend to speed up the development of the Muara Bakau PSC, Kutei Basin, East Kalimantan, Indonesia.
ENI offshore activities are located in the Tarakan and Kutei Basins, offshore Kalimantan, north of Sumatra and West Timor.
ENI and GDF-Suez capital expenditure for the Jangkrik project is estimated to $2 billion.
In the Muara Bakau natural gas field, the working interests within the joint venture are shared between :
- Eni from Italy 55% who is the operator
- GDF-Suez from France 45%
Following the successful Jangkrik-2 appraisal well, ENI and GDF-Suez joint venture has decided to perform in following the assessment of the technical and commercial viability of a fast-track development of the gas.
The natural gas of the Jangkrik field should provide feedstock to the Bontang LNG plant on the East Kalimantan, Indonesia.
The Jangkrik-2 appraisal well is located in the Makassar Strait of Indonesia, approximately 70 kilometers from the East coast of Borneo, Indonesia.
The natural gas reservoir lies by 2449 m depth in 425m of water depth.
First tests show a natural gas of excellent quality with a low rate of contaminants.
The natural gas production is expected to reach 360 million cf/d.
The Jangkrik offshore field development includes:
- Installation of a new-built Floating Production unit for gas and condensate treatment
- Construction of a natural gas and condensates transport facility connecting the gas to the existing onshore Bontang LNG and condensates to the treatment plants in the area.
- Sub-sea, Umbilical, Risers, and Flowlines (SURF package)
- Sub-sea production system with control systems and manifolds
To develop the Jangkrik project on fast-track, ENI and GDF-Suez agreed on organizing the calls for tender in combining the Front end engineering and design (FEED) with the engineering procurement and construction (EPC) contracts.
From the project feasibility study the:
- Floating production unit will be 200 meters long and weight 20,000 t with 360 million cf/d capacity.
- Gas and condensates pipelines should be 86 kilometers long offshore and 6 kilometers long onshore.
ENI and GDF-Suez call for tenders three packages
Four groups in competition for Jangkrik floating production unit
- Chiyoda and Hyundai Heavy Industries
- Petrofac and Daewoo Shipbuilding Marine & Engineering (DSME)
- Saipem and Tripatra Engineers & Construction
- Technip and McDermott
For the SURF package (Sub-sea,Umbilical, Risers and flowlines) ENI and GDF-Suez qualified:
- Saipem and Swiber Offshore
- Timas Suplindo and WorleyParsons and Subsea7
- Tripatra Engineers & Construction with Emas-AMC
Sub-sea production system, control systems and manifolds
For this specific package , ENI and GDF-Suez could only play with the three classical bidders:
- Aker Solutions
- GE Vetco-Gray
In respect with their fast-track development program of the Jangkrik natural gas, ENI and GDF-Suez are expecting to issue the calls for tender in summer in order to make the final investment decision (FID) in first quarter 2013 for a completion and start-up in 2016.