Husky to qualify Madura MDA-MBH FPU bidders
Calgary-based Husky Energy (Husky) and its partners, the state-owned China National Offshore Oil Corporation (CNOOC) and the independent Singapore-registered Samudra Energy (Samudra) are proceeding to the qualification of the engineering companies and shipyard to be invited to bid (ITB) for the construction of the floating production unit (FPU) to be moored in the Madura Strait of Indonesia offshore East Java to develop the MDA-MBH fields.
Husky signed its first production sharing agreement (PSA) with the Indonesian Government in 1982 and drilled the first wells in 1984.
Madura block is located in the Madura Strait, 200 kilometers from Surabaya in East Java
Today these companies share the working interests in Madura in such a way that:
– Husky 40% is the operator
– CNOOC 40%
– Samudra 20%
In 2010, Husky and the Indonesian Government renewed the PSA for a second period of 20 years.
Husky and CNOOC to develop Madura in phases
Because of the size of the Madura block, Husky and its partners decided to phase up the development of the different fields in beginning with Madura BD.
Husky awarded the floating, production, storage and offloading (FPSO) vessel and welhead platform construction on the first half of 2014 in expecting the first production to start on early 2017.
Designed to treat up to 175 million cubic feet per day (cf/d) of natural gas, the Madura MDA-MBH FPU will be fed by:
– 110 million cf/d from Madura MDA
– 55 million cf/d from Madura MBH
In the first phase Husky and its partners invested $1 billion capital expenditure.
For this Madura phase-2 Husky is planning to spend $375 million additional.
To maximize advantage from these investments, Indonesia required Madura projects to hold 30% local content.
Therefore the qualification of the engineering companies and shipyards will assess the capability of the contenders to respect this constraint as well as to meet Husky technical requirements and process performances.
Considering the good quality of the natural gas liquids (NGL) held in the Madura gas fields, Husky, CNOOC and Samudra are targeting to produce 17,000 barrels of oil equivalent per day (boe/d) from Madura BD, MDA and MBH fields.
In addition, Husky and its partners made five more discoveries named MAX, MBF, MBJ MCA and MDK that should be developed in following Madura next phases in the 2020s years.
To save time and costs, Husky, CNOOC and Samudra have given preference to the conversion of an existing vessel to build Madura MDA-MBH FPU that should start operation under ten years lease contract by 2017.