Petronas FLNG-2 to require MEG additional module
The El Dorado, Arkansas-based, Murphy Oil Corporation (Murphy) and the Malaysian national oil company Petronas are revising upward the design of their floating liquefied natural gas (FLNG) vessel for the development of the Block H, offshore Sabah in Malaysia.
This escalation may lead Malaysia to import natural gas already in 2015.
In April 2012, Petronas made the final investment decision (FID) on its FLNG-1 currently under construction by the consortium Technip and Daewoo Shipbuilding and Marine Engineering (DSME), and to be installed at Labuan, offshore Sarawak.
Covering 1.40 million acres offshore Sabah, the Block H is shared between the partners in the a way:
– Murphy 60%, the operator
– Petronas 40%
JGC and Toyo in competitive FEED for Sabah FLNG-2
In order to speed up the development of this field, Murphy and Petronas have decided to organize a front end engineering and design (FEED) competition in order to save time in the additional bidding process for the engineering, procurement and construction (EPC) phase.
Estimated to 4,000 tonnes, this MEG module should represent 10% of the current topsides to weight 40,000 t/y.
As a result of this new module, the FLNG-2 should exceed 360 meters length and will require an extension of the deadline for the consortia to adjust their technical and commercial offer according to end of third quarter 2013.
With the capital expenditure running slightly above $1 billion, Murphy and Petronas expect anyway to award the EPC contract for the Sabah FLNG-2 in the Bloch H to the JGC or Toyo consortium before the end of 2013 for a production in 2016.