Category Archives: Indonesia
Shell Plans USD 20 bln Investment in Indonesia’s Masela Block
International oil major Shell will invest approximately $20 billion in Masela offshore block, located the Arafura Sea, Indonesia.
According to Reuters, Indonesia’s Chief Economic Minister Hatta Rajasa said yesterday that Shell would gradually invest $20 billion between 2013 and 2019.
In December, 2011, Shell acquired a 30% participating interest in the Masela Block (Abadi project). Inpex is the operator of the project with 60% interest.
The Abadi gas field will be developed in phases and that one FLNG plant will be constructed and utilized for the annual LNG production of 2.5 million ton for the first phase development.
First production from the field is expected to begin in 2018.
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Niko’s Drilling Program in Indonesia Kicks Off
Niko Resources Ltd. has announced start of its exploration drilling program in Indonesia and participation in the company’s twenty-first block in the country.
Niko will partner with Zaratex N.V. in the 5908km2 Lhokseumawe PSC in western Indonesia. The block is located directly adjacent to the giant Arun field (>3.1BBOE) and associated LNG plant. A 3865km2 3D program was acquired on the block and a number of high impact prospects were subsequently identified. Drilling is to commence in the shallow water portion of the block in April with two wells. The Candralila-1 and Ratnadewi-1 prospects will be drilled back to back and if successful will be monetized relatively quickly by accessing the existing extensive local infrastructure.
Niko’s deep water rig, the Diamond Ocean Monarch, is scheduled to arrive in Lhokseumawe in September to drill the Jayarani-1 well. This will be the first well in Niko’s planned program of more than 25 deep water wells in Indonesia. In addition, in the North Ganal PSC in which Niko is a participant, operator Eni will be using the Transocean Seven Seas to drill the Lebah-1 well in the second half of 2012. The Lebah prospect will test the extension of the Jangkrik and Jangkrik-NE discovery trend (>400MMBOE of reserves to date). Eni has already filed a POD for the development of these discoveries and first production is expected in 2015.
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DOF Subsea’s Skandi Singapore Bags Gig Offshore New Zealand
DOF Subsea, a subsidiary of DOF ASA advises that it has secured a campaign of work in the New Zealand Taranaki Basin for the new build DSV Skandi Singapore for an undisclosed sum. The vessel will mobilize for New Zealand on completion of the current work program in Indonesia for Conoco Philips.
Work in the Taranaki Basin involves diving and ROV operations for for AWE Limited, Shell Todd Oil Services Limited and Origin Energy. The program of work will be completed in February 2012.
Steve Brown, EVP, Asia Pacific said
“The Skandi Singapore is an ideal vessel for the work in the Taranaki Basin. The vessel is the newest DSV in the DOF Subsea fleet and is equipped for extreme weather operation in environmentally sensitive areas. Since delivery, the Skandi Singapore has proven to be a highly capable vessel and is building an excellent reputation with our regional clients.
With the delivery of new vessels into the region, DOF Subsea continues to build a strong project focused organization based in Perth, Australia and Singapore. With a regional project management and engineering capability based around 220 permanently employed engineers and support staff and the highest quality vessels in the region DOF Subsea continues to pursue growth across all subsea market sectors”
Mons Aase, CEO said that the contract awards in Asia Pacific are great news and that the investment in new assets is positive for further growth in the region.
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Singapore: Sembcorp Secures FSRU Conversion Contract with Golar LNG
Jurong Shipyard, a wholly-owned subsidiary of Sembcorp Marine, has secured an approximately S$20 million contract from Golar LNG Energy to convert the LNG Khannur, a Liquefied Natural Gas (LNG) tanker, to a Floating Storage and Regasification Unit (FSRU) to be renamed West Java FSRU.
The 125,000-cbm LNG tanker, which arrived in Jurong Shipyard recently, will be converted into a FSRU capable of producing 500 MCFD (million cubic feet per day) of gas, with a regasification capacity of approximately 3.8 MTPA (million metric tonnes per annum).
The West Java FSRU represents Golar’s fourth FSRU project for PT Nusantara Regas, a joint venture between Pertamina and PGN. On conversion completion, the vessel will be installed 15km offshore Muara Karang, Jakarta Bay, in Indonesia, where it is contracted to operate until the end of 2022, with provision for further automatic extension options to 2025 subject to certain contract conditions.
The West Java FSRU project will be Indonesia’s first LNG regasifaction terminal and represents the first FSRU project in Asia.
The contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of Sembcorp Marine for the year ending December 31, 2011.
GAIL Looking to Buy Stake in Indonesia Offshore Blocks from Chevron
GAIL (India) Ltd is in talks with US energy major Chevron to acquire stakes in its deepwater natural gas blocks in Indonesia.
“Preliminary discussions have been held with the US firm. Chevron officials and Indonesia upstream regulator BPMIGAS will soon be coming to the country to hold further talks,” company sources said.
“The details on the amount of stake are yet to be worked out. The talks are at an early stage.”
Chevron plans to sell its stakes in two deepwater projects — Gendalo-Gehem and Bangka — in Indonesia. It plans to reduce its shares in the blocks this year to 55.1 per cent and 54 per cent, respectively, from 80 per cent, the firm said in its filing with the US Securities and Exchange Commission.
It had reached an agreement with China’s state-owned oil and gas company Sinopec to sell an 18 per cent stake in Gendalo-Gehem for $680 million.
At present, Chevron holds an 80 per cent stake with Italy’s Eni and Indonesia’s Pertamina owning the rest. The Indonesian regulator is yet to approve the sale to Sinopec.
Chevron has also sold some stake in Bangka but not revealed details.
It said, “During 2010, the company reached an agreement to farm out a portion of its working interest in the production sharing contracts of the two projects.”
Sources said GAIL would immensely benefit by acquiring a stake in the project.
The overseas asset acquisition will help it to access LNG for India. The equity participation in such upstream assets will act as a natural hedge to GAIL, which will also get to learn from a global player such as Chevron.
Read more at The Telegraph India