A SERIES of contracts have been awarded covering the deepwater Jangkrik Complex development in the Muara Bakau production sharing contract, located in the Makassar Straits off East Kalimantan.
Operated by Eni and located about 70 kilometres from Balikpapan, the Jangkrik complex is Indonesia’s first deepwater development, situated in water depths of between 200 and 430 metres.
A consortium between Hyundai Heavy Industries Ltd, Saipem, Tripatra Engineers & Constructors and Chiyoda secured the engineering, procurement, commissioning and installation (EPCI) contract for a new built barge Floating Production Unit (FPU) for the Jangkrik Complex Project development.
The scope of work includes engineering, procurement and fabrication of the FPU and the installation of a mooring system as well as hook-up, commissioning and assistance to the start-up, Saipem said.
The Jangkrik FPU project, a spread-moored unit with a treating capacity of 450 million cubic feet of gas per day plus condensates, will be carried out from the Saipem Execution Centre in Jakarta.
The topsides fabrication activities will be carried out in Saipem’s Karimun Island Yard, also located in Indonesia, while the hull will be fabricated in HHI’s offshore yard in Ulsan in South Korea.
The FPU will be delivered at site ready for surf hook-up in 34 months, Saipem said.
Saipem said it was adding US$540 million to its books with the project, combined with a new order from Aker solutions for the fabrication of subsea structures, including suction anchors, for the Moho project offshore the Congo.
FMC Technologies also secured a new contract for Jangkrik, supplying subsea systems, including subsea trees, manifolds, jumpers and connection systems, umbilicals, tooling and associated topside and subsea controls systems to the project.
“The order has an estimated value of US$720 million in revenue if the full scope of the award is called off,” FMC said in an announcement.
At the same time, Technip was awarded contract worth between €500 million to €1 billion the EPCI of flexible risers, flowlines and pipelines.
The contract will cover 36 kilometres of flexible risers and flowlines with diameters ranging from 4 inches to 14 inches, as well as 195 kilometres of pipeline with diameters ranging from 4 inches to 24 inches, and subsea equipment which includes mid-water arch and flowline end termination.
Technip will also carry out the installation of 51 kilometres of umbilicals, five manifolds and seven subsea isolation valve structures and associated flying leads.
The project also includes the engineering, procurement and construction of an onshore receiving facility including pig traps, metering systems and utilities.
Technip said its work on the project was scheduled to be completed in the first quarter of 2017.
The flexible pipes will be manufactured at Technip’s Asiaflex Products plant in Tanjung Langsat, Johor, Malaysia.
Technip’s S-Lay and heavy-lift vessel, G1201 and its multipurpose installation and construction vessel, the Deep Orient, will be used for the installation.
Indonesia’s special task force for upstream oil and gas business activities SKK Migas acting chairman J. Widjonarko said he expected the drilling of 11 development wells would be conducted at the Jangkrik and Jangkrik North East fields in a parallel manner.
“Both of those fields are expected to start producing in early 2017 with peak condition of 450 million cubic feet of gas per day for six years,” he said, with the wells expected to produce for about 14 years.
Both of these fields are expected to fulfil gas demand for electricity and industry in East Kalimantan, Java, South Sumatera, Central Sumatera, North Sumatera, and Aceh in the form of liquid natural gas (LNG) and gas pipelines, SKK Migas said.
To do this, Eni and SKK Migas would work hard to reserve 47 per cent of the gas allocated for domestic use, rather than the 30 per cent reserved in the initial plan of development for the blocks.
“It will work as long as the economic is possible, and the domestic gas infrastructure supports it,” Mr Widjonarko said.
The contract awards came after Eni subsidiary Eni Muara Bakau started a 3D seismic survey in the Makassar Straits, SKK Migas said, at depths rainging from 90 to 1,400 metres.