Contract Awarded for Offshore Gas Processing Facilities in Indonesia

abarrelfullabarrelfull wrote on 14 Sep 2012 07:19
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30th AUG 2001

We take pleasure in announcing that JGC Corporation, in a joint venture with Kellogg Brown & Root (KBR), has been awarded by Conoco Indonesia Inc. Ltd. a contract to provide offshore gas processing facilities to be located in the Conoco-operated South Natuna Sea Block B, in Indonesian waters.

Further details of this project follow:

1. Contract Party

  • The contract party, Conoco Indonesia, is an operating company for Concession B of the South Natuna Sea, jointly owned by Conoco (40%), INPEX Natuna, Ltd.(35%) and Texaco (25%) under a production sharing contract with Pertamina.

2. Construction Site

  • Belanak oil/gas fields, South Natuna Sea, Indonesia

3. Contract Services

4. Delivery Date

  • Late 2004

5. Contract Price

  • Approx. ´14 billion, ´70 billion as joint venture

6. Project Summary

  • This project is to construct FPSO facilities for the utilization of crude oil and gas produced in the Belanak oil/gas fields, South Natuna Sea, with processing, storage, and offloading. JGC will work in a joint venture with P.T. Brown & Root, an Indonesian subsidiary of KBR.
  • In recent years, FPSO facilities equipped with a crude oil processing unit built on a tanker have been used worldwide; this project, however, features FPSO facilities equipped with an LPG recovery plant, the first of its kind in the Asia-Pacific region.
  • Crude oil and LPG, after storage, are directly offloaded to a tanker, whereas gas is pipelined to Malaysia. The facilities produce approximately 100,000 barrels/day of crude oil, generate gas sales of 350 MSCFD, and produce 15,000 barrels/day of propane and 8,000 barrels/day of butane.
  • It is expected that the future increasing use of FPSO facilities will promote gas development in smaller gas fields and the utilization of associated gases. This project will pioneer the use of FPSO facilities in the gas-processing field. JGC has already collaborated with Japan National Oil Corporation (JNOC) in research on LNG FPSO facilities, with favorable results obtained for commercial use, and is now developing another study for the development of the commercial use of DME FPSO facilities.

7. Background

  • JGC has an alliance agreement with KBR for sales and project execution in the natural gas service area, and the project is within the framework of this cooperative arrangement. As part of its business development initiative in the hydrocarbons area, JGC has focused on offshore projects in the past few years.
  • This project marks the first EPC job to be awarded to JGC in such new business area for the company. The award is believed to be the result of the client's high evaluation of the outstanding capabilities of JGC and KBR, the extensive project execution experience accumulated by the two partners in Indonesia, KBR's achievements in the offshore field, and JGC's high level of project management expertise as well as its vast experience in gas processing plants (and in particular LPG extraction process technologies)
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