Gendalo-Gehem bidders to include Indonesia partners
The US major company Chevron and the Italian national oil company (NOC) Eni are reviewing the qualification of the contractors in competition for the floating production and offloading (FPO) vessels required for the development of the Gendalo and Gehem liquids-rich gas fields in the Makassar Strait offshore the East Kalimantan Province of Indonesia.
This re-qualification process comes after the decision made in 2013 by Chevron and Eni to declare “failed bid” the call for tender issued for the engineering, procurement and construction (EPC) contract of the FPOs to be installed on the Gendalo and Gehem gas fields.
Located in the Strait of Makassar, the Gendalo and Gehem gas fields are 120 kilometers distant from each other and lying by 1,829 meters of water depth.
Located at the foot of the Indonesia Continental Shelf in the Kutal Basin, the Gendalo – Gehem project will be the deepest project of that size achieved in Indonesia.
The Maha and Gendang gas fields should be tied-back to the Gendalo FPO, so that together with Gehem, Chevron and Eni could access recoverable reserves estimated to 4 trillion cubic feet (tcf) of natural gas.
In this Gendalo -Gehem project, the working interets are shared in such a way that:
– Chevron 80% is the operator
– Eni 20%
– Indonesia Government holds 10% provision share that it can exercise at any time through the national company Pertamina.
– WorleyParsons took care of the subsea, umbilicals, risers and flowlines (SURF) package
New competition in Chevron Gendalo-Gehem FPOs
Chevron and Eni selected the FPO concept to develop Gendalo-Gehem because of their location 150 kilometers and 90 kilometers respectively from the onshore Santan Storage Terminal and Bontang LNG Terminal.
In addition to the pricing issue, questions came up regrading the compulsory share of local content proposed by some bidders in respect with the Indonesia regulation.
For the re-tender of the Gendalo and Gehem FPOs, Petrofac team should not participate, instead Chevron and Eni qualified a new team led by the Japanese Toyo Engineering Company (Toyo or TEC) and supported by Cosco Shipyard from China and the local Meindo Elang Indah.