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Husky leases FPSO worth US$1.18 bln from a Malaysian firm for BD gas field project

JAKARTA (Rambu Energy) – Calgary-based Husky Energy said that the company, together with its partner China National Offshore Oil Corporation Unit NCOOC Madura Limited (HCML), had issued a letter of intent to award a contract for leasing a floating, production, storage and offloading (FPSO) vessel for the liquids-rich BD gas field development within Madura Strait block, offshore East Java.

The LoI will allow design work on the vessel to begin, Husky said. Husky did not disclose the name of the company that will lease the FPSO. However, other sources said that the letter of intent has been issued to Bumi Armada, a Malaysia-based international offshore oil and gas field service provider.

Bumi Armada said in a statement that its wholly-owned subsidiary Bumi Armada Offshore Holdings Limited (BAOHL), together with its joint venture company, PT Armada Gema Nusantara (PT AGN), have been appointed as the FPSO vessel lease contractor for the Madura BD field, approximately 65 kilometers east of Surabaya town and about 16 km south of Madura Island.

Based on the letter of intent, the consortium will supply an FPSO Vessel to HCML at a total contract value of US$1.18 billion for a fixed period of ten (10) years with options of five (5) annual extensions worth an aggregate value of US$147 million.

“Indonesia has proven reserves of 3.9 billion barrels of oil and 141 trillion cubic feet of natural gas and we are excited to be a part of Indonesia’s energy development. Our track record of delivering on time, within budget, safe and reliable FPSOs, was instrumental in securing this award,” Executive Director and Chief Executive Officer of Bumi Armada, Hassan Basma said.

Currently, Husky owns 40 percent participating interest in the Madura Strait block and also acting as the operator, CNOOC owns 40 percent and a local company PT Samudera Energy 20 percent. Husky expects the first oil production to start in early 2017.

In addition, Husky and CNOOC are now preparing for the second phase development of the MDA and MBH fields of the block. They plan to use a floating production unit (FPU) and two fields dedicated wellhead platforms based on the front-end engineering design (FEED) set earlier (*)



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