Japan’s INPEX has awarded the contract for the Front End Engineering and Design (FEED) of its major subsea production facilities for the development of the Abadi LNG Project in Indonesia.
The Abadi LNG Project is a liquefied natural gas (LNG) project, which envisions the adoption of the Floating LNG (FLNG) plant constructed and utilized for an annual production of 2.5 million tonnes for the Stage-1 development of the Abadi gas field located in the Masela Block, Arafura Sea, Indonesia.
FEED is the project development phase in which plans for the development facilities are defined, designed and evaluated in more detail by a contracted engineering company.
The successful contractor for the subsea FEED contract is PT Wood Group Indonesia, a subsidiary of John Wood Group plc (Wood Group), a British company, one of the world’s leading engineering companies in the oil & gas E&P business. Wood Group will undertake the subsea FEED for approximately 12 months, which covers the detailed engineering works for SURF, which mainly consists of Subsea production system, Umbilicals, Risers and Flow lines. A separate FEED contract for the FLNG facilities as one of major facilities of this project will be awarded in due course, which is currently under the process of selecting a FLNG FEED contractor.
The Abadi LNG Project is operated by INPEX Masela with a 60% participating interest while Shell holds a 30% participating interest and PT EMP Energi Indonesia, a subsidiary of PT Energi Mega Persada Tbk. holds a 10% participating interest. The Masela Block is located in Arafura Sea, at the eastern part of Indonesia, which measures 3,221km2 in a water depth ranging from 400m to 900m. The Abadi gas field was discovered in 2000, and the subsequent six appraisal wells and the study results confirmed the sufficient gas reserves for LNG development. In December 2010, the plan of development for Stage-1 (POD-1) was approved by the Indonesian Government that the Abadi gas field will be developed in phases and a FLNG plant will be constructed and utilized for an annual production of 2.5 million tonnes for the Stage-1 development.
Press Release, November 26, 2012