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Technip wins subsea EPCIC contract for Chevron’s Bangka field, offshore East Kalimantan

JAKARTA (Rambu Energy) – Technip (Paris:TEC) said it has been awarded a substantial subsea contract by Chevron Indonesia for the Bangka Development, located in Rapak PSC area, approximately 70 km offshore the province of East Kalimantan, Indonesia.

The contract covers engineering, procurement, construction, installation, commissioning and pre-commissioning (EPCIC) of flexibles, umbilical, and subsea structures valued at between from €100 to €250 million.

Technip said its operating centers in Jakarta, Indonesia, and Kuala Lumpur, Malaysia, will execute the contract and provide customer support, from conception to execution.

“We are delighted to be awarded this new project. It demonstrates our differentiating advantage of having a unique vertically integrated value chain for subsea infrastructures to provide the most competitive solutions to our client,” KK Lim, president of Technip in Asia Pacific, said.

The EPCIC will cover fabrication of flexible pipes, at the Group’s Asiaflex Products plant in Tanjung Langsat, Johor, Malaysia; manufacture of the umbilical at Technip Umbilicals’ facility in Texas, USA; and mobilization of the Deep Orient, its multipurpose installation and construction vessel, for the installation phase of the project.

Deep Oreint joined the fleet last year and works predominantly in the Asia-Pacific market, Technip said.

Technip is a world leader in project management, engineering and construction for the energy industry. It currently operate sin 48 countries and employs around 40,000 people worldwide.

Bangka field is part of five gas fields of the giant Indonesia Deepwater Development (IDD) project being developed by Chevron Indonesia Company (Cico). Chevron develops the monster IDD project through four Production Sharing Contracts (PSC), namely  Ganal, Rapak, Makassar Strait and Muara Bakau PSCs. There are five gas fields being developed in the IDD project, namely Bangka, Gehem, Gendalo, Maha and Gandang fields.

Cico plans to develop 28 deepwater wells in five integrated fields through two floating production unit (FPU) hub and one subsea tie-back. These two FPU hub are Hub Gendalo, which is the facility integrating the Field of Gendalo, Maha, dan Gandang in 2.200 – 5.600 feet of depth and Hub Gehem, which is the production facility of Gehem Field in 6.000 feet of depth.

Meanwhile, Bangka Field in 3.200 feet of depth would become subsea tie back to FPU West Seno, which is already exist and operated by Chevron. The facility is expected to require investment US$ 4 up to US$ 7 billion.

The Front-end engineering design (FEED) for Bangka Field had finished in December 2011, while FEED for Gendalo-Gehem is hoped to be able to finish by April this year.

Earlier, Cico said the final investment decision (FID) for Bangka Field was scheduled to be done by 2013, while FID for Hub Gendalo and Gehem is a year later. Bangka Field was supposed to produce gas by 2015, while the production in Hub Gendalo and Gehem is hoped to be realized each by 2017 and 2018.

Chevron said recently that it has made a final investment decision (FID) on the first stage of the IDD project, but opted to delay a decision on the second phase pending on the Indonesian government approval.

Chevron has set the FID on the first part of the project – the Bangka field – after securing government approvals. Meanwhile, the FID for the development of the Gendalo and Gehem fields – the second stage of the project –l will not be made this year.

Chevron said in its website that the Gendalo and Gehem fields are expected to produce a maximum of 1.1 billion cubic feet of natural gas and 47,000 barrels of condensate per day.(*)

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