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Chevron qualified contractors to bid on $3 billion Gendalo-Gehem

Technip and WorleyParsons completed the FEED

Chevron had awarded the front end engineering and design (FEED) for the development of Gengalo – Gehem project to:

 – Technip Jakarta office in Indonesia and Houston office in Texas, USA, for the two large Floating Production Units (FPU) package

 – Worley Parsons Indonesia for the Subsea and Flowline system package.

From these FEED performed by Technip and WorleyParsons, the packages are estimated to:

 – $1 billion for the construction of the FPUs

 – $2 billion for the Subsea and Flowline system

The high amount of the Subsea and Flowline system package is justified by Chevron‘s intention to tie Maha and Gandang fields in Gendalo FPU, as all located in the Strait of Makassar but at 20 kilometers distance from each other.

The Gendalo – Gehem is a non associated natural gas and condensate project developed by a joint venture in which the working interest are shared between:

 – Chevron 80% who will be the operator

 – ENI 20%

According to the FEED performed by Technip the:

 – Gendalo FPU will also treat the gas collected from Maha and Gandang fields with a total gas processing capacity of  420,000 mcf/d natural gas and 30,000 b/d condensate

 – Gehen FPU is designed to process 700 mcf/d natural gas and 25,000 b/d condensate

Then the natural gas and the condensate will be transported from the FPUs to the Santan TerminalEast Kalimantan through subsea pipelines with the respective length:

 – 150 km from Gendalo

 – 88 km from Gehem

A part of the gas will be sold as such and another part will supply the Bontang LNG facility.

All together Gendalo – Gehem and the connected Maha and Gandang fields should contain 4 trillion cf of recoverable gas reserves from which Chevron and ENI expect to produce at peak 1.1 billion cf/d of gas and 31,000 b/d condensate.

Korean EPC to win Gendalo – Gehem FPUs package

According to the Indonesian regulation, the Gendalo – Gehem project should have at least 35% of local content.

But the sizes of the FPUs, hundreds meters long,  and the 25,000 t topsides weight have requested Chevron to proceed with a strict selection of the potential EPCs having at least experienced $1 billion offshore projects.

In this context Chevron and ENI qualified three teams for the Call for Tender, each one having a South Korean contractor:

 – Saipem goes with Hyundai Heavy Industry (HHI) and the local Tripatra with the support of SMOE (Singapore) and Gunanusa (Indonesia)

 – McDermott submitted an invidual bid as still in discussion with Samsung Heavy Industries and STX Offshore is running for  and the local Singgar Mulia

 – Petrofac teams up with Daewoo Shipbuilding Marine & Engineering (DSME) for the hull, the Malaysian RNZ and the Indonesian Inti Karya Persada Technik for the topsides

In this contest, a South Korean EPC (Hyundai Heavy Industry, Samsung Heavy Industries, STX or Daewoo Shipbuilding Marine & Engineering (DSME)) should win the hulls of the Gendalo -Gehem FPUs 

Chevron and ENI qualify four teams for Subsea part

According to the FEED executed by Worley Parsons, the Subsea and Flowline system package will include the engineering, procurement, construction (EPC) and installation of:

 – 150 km natural gas and condensate export pipelines from Gendalo to the Santan Terminal Onshore Kalimantan

 – 88 km natural gas and condensate export pipelines from Gehem to Santan Terminal

 – SURF package (Subsea, Umbilicals, Risers, Flowlines)

Chevron and ENI qualified four groups of bidders:

 – France’s Technip with Dutch Heerema Marine Contractors and Singapore’s Swiber Offshore 

 – Italy’s Saipem with Indonesia’s Rekayasa Industries

 – UK’s Subsea7 with Indonesia’s Timas Suplino

 – Dutch Allseas with Singapore’s Emas Offshore

The installation of 630 km of pipelines, 80 km of umbilicals, 120 subsea flowlines connections by 1500 meters deep will require the winning team to charter a fleet of shallow to deep water S-Lay and J-Lay vessels.

To assess how much the team of EPCs in competition are aligned and able to execute and complete in 2016 the Gendalo -Gehem project, Chevron and ENI will invite all the contractors for pre-bid meetings to award the FPUs and Subsea packages on early 2013.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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