Conoco awards contracts for Belanak gas field off Indonesia
Conoco Inc. awarded two engineering, procurement, construction, and installation contracts for the $1.6 billion Belanak gas development off Indonesia.
By the OGJ Online Staff
HOUSTON, Sept. 7 -- Conoco Inc. awarded two engineering, procurement, construction, and installation contracts for the $1.6 billion Belanak natural gas development off Indonesia.
It made the awards under its South Natuna Sea Block B production-sharing contract with state oil company Pertamina.
The $587 million contract for a floating production, storage and offloading (FPSO) unit went to Brown & Root Indonesia, and the $157 million contract for two wellhead platforms and associated pipelines and oil-offloading buoy went to J. Ray McDermott Indonesia.
The contracts support two separate gas sales agreements, both supplied by the Conoco-operated South Natuna Sea Block B PSC. The first is a 22-year contract between Pertamina and Singapore's SembCorp Gas for the long-term delivery of gas to Singapore. The field is 125 miles from Singapore.
The second agreement is a 20-year contract between Pertamina and Malaysia's state oil company Petronas for the delivery of gas to Malaysia.
Belanak has expected ultimate production of 600 bcf of natural gas and 100 million bbl of oil, condensate, and liquefied petroleum gas.
The Belanak structure will be developed using an FPSO with LPG extraction facilities; two wellhead platforms; 38 wells; a floating storage and offloading (FSO) unit for LPG; a gas export pipeline; and intra-field pipelines.
In addition, 1.4 tcf of gas and 150 million bbl of oil, condensate, and LPG from at least six other nearby fields will be produced through the Belanak facilities.
The FPSO will process up to 350 MMcfd of gas for export; up to 100,000 b/d of oil and condensate, and up to 23,000 b/d of LPG. The 1,000-ft vessel will be able to store up to 1 million bbl of oil, which will be off-loaded to tankers for onward transportation. It will be installed and ready for production in late 2004.