JAKARTA (RambuEnergy) – TechnipFMC (NYSE:FTI) (PARIS:FTI) (ISIN:GB00BDSFG982) announced that it has been awarded a large integrated Engineering, Procurement, Construction, Transportation and Installation (iEPCI™) contract by Eni for the Merakes project, located offshore Balikpapan Indonesia, at a water depth of approximately 1,500 meters.
Merakes Field is located under the East Sepingan Production Sharing Contract (PSC) in East Kalimantan. The company expects the startup of the Merakes field to commence in 2020.
This contract covers five deepwater wells, and their 50-kilometer tie back to the existing Jangkrik Floating Production Unit in Indonesia.
The project scope includes engineering, procurement, installation and pre-commissioning of subsea equipment such as subsea trees, a manifold, large bore deepwater high pressure flexible lines, umbilicals and distribution hardware, flexible risers, flowlines and jumpers.
“This award demonstrates our leadership in iEPCI™: an example of how through collaboration and engagement with our customer, we’re simplifying subsea field architecture, enabling long tie-backs and accelerating time to market for their production, all important drivers for Eni and Indonesia,” Arnaud Piéton, President Subsea at TechnipFMC said.
“We are proud to count Eni as a client for iEPCI TM and honored to help them in developing these resources through our integrated approach and to support the Indonesian expansion,” he said.
For TechnipFMC, a “large” contract is between $500 million and $1 billion.
The company stated that Merakes production will be shipped via existing pipelines from the Jangkrik FPU to the PT Badak-operated Bontang LNG processing facility. The LNG facility, located in Indonesia’s East Kalimantan province, serves domestic and export markets.
Merakes Field, is located 35 kilometers from the Eni-operated Jangkrik field, is estimated to have 2.0 Tcf of gas in place with additional potential still to be evaluated.
So far, Eni has successfully tested Merakes 2 well, the first appraisal well of the Merakes discovery.
Eni is the operator of East Sepinggan PSC with its affiliate Eni East Sepinggan Limited holding 85% Participating Interest while Pertamina Hulu Energy holds the remaining 15%.
Eni has been operating in Indonesia since 2001and currently has a large portfolio of assets in exploration, production and development.
In the Kutei Basin in early 2014, Eni started the development activities of the deep offshore Jangkrik gas field in the Muara Bakau PSC.
Production activities are located in the Mahakam River delta, East Kalimantan through the participated Company VICO Ltd (Eni 50%, Saka 50%) operator of the Sanga Sanga PSC that provides an average equity production of 16,000 barrels of oil equivalent per day. (*)