Inpex and Shell awarded competitive FEED contracts
Inpex Corporation (Inpex) from Japan and the international oil company Shell signed two contracts in parallel for the front end engineering and design (FEED) of the Abadi floating liquefied natural gas (Abadi FLNG) project in the Masela Block, offshore Indonesia.
The Masela Block is located in the utmost southern Indonesia territorial waters along the boarder line with the Australia territorial waters.
The Masela Block of the Abadi FLNG project is covering 3,221 square kilometers by water depth between 300 and 1,000 meters.
In 1998, Inpex acquired 100% of the permit and started exploration in following.
In 2010, the Indonesian Government approved the program of development for the first phase (POD-1) of the Masela Block based on a FLNG concept.
In December 2011 and on early 2012, Shell had acquired 30% shares in the Abadi FLNG project and in opposite way, Inpex bought 17.5% stake from Shell in the pioneering Prelude FLNG project offshore Western Australia.
In respect with these crossed participation, the working interests in the Abadi FLNG project stand by:
– Inpex 60% is the operator
– Shell 30%
– PT EMP Energi Indonesia 10%
– 2.5 million t/y of LNG
Because of the size of the field the development of the Masela Block Inpex and its partners are still working on the exploration of the field with two or three appraisal wells and one exploration well being performed on first half 2013.
This exploratory work will help to define requirements for the large SURF package including the Sub-sea production system, Umbilicals, Risers and Flowlines.
Three engineering companies were in competition for the FEED contract of the SURF package.
JCG and Saipem head to head in Abadi FLNG FEED
In respect with the principle of competitive FEED, the two teams are expected to propose the best compromise between performances and costs in using their own technology since qualified by Inpex and Shell at the previous stage.
In this context, Inpex and its partners Shell and PT EMP Energi decided to adjust the dates for the final investment decision (FID) and start-up of the Abadi FLNG project on the Masela Block only at the conclusion of the competitive FEED between JGC‘s team and Saipem‘s group.