A consortium between Saipem SpA and an area companion has received an offshore engineering, procurement, development and set up (EPCI) contract for the BP PLC-led Tangguh Ubadari, CCUS, Compression (UCC) Mission in Indonesia.
Earlier this month BP introduced a $7 billion ultimate funding choice (FID) to develop the Ubadari gasoline subject to produce feedstock to the prevailing Tangguh liquefaction facility and construct an related carbon seize facility. The UCC venture is in Papua Barat Province.
The EPCI contract awarded to Saipem and Jakarta-based PT Meindo Elang Indah quantities to about $1.2 billion. Saipem’s share is round $1 billion, the Italian offshore driller, which additionally gives engineering companies to the oil, gasoline and offshore wind sectors, stated in a press launch.
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“Saipem’s actions embrace the engineering, procurement, development and set up of two wellhead manufacturing platforms, a wellhead platform for the re-injection of CO2 and roughly 90 km [55.92 miles] of related pipelines”, it stated.
“The platforms shall be fabricated domestically in Karimun, Saipem’s largest yard worldwide and one of many largest within the Southeast Asian area, with over 5,000 staff and roughly 1.4 million sq. meters space together with the marine base and docks.
“The award of this essential contract in Indonesia consolidates Saipem’s place within the segments of pure gasoline and of CO2 seize and storage initiatives, due to a singular mixture of world-class property with engineering and technological know-how”.
BP expects to extract about three trillion cubic ft of gasoline within the Ubadari subject to feed Tangguh LNG, which can “assist meet rising vitality demand in Asia”, the British vitality main stated in a press release November 22 saying the FID.
Ubadari is anticipated to begin manufacturing 2028. The liquefaction facility, which went on-line 2009, has been expanded final 12 months with a 3rd prepare, bringing Tangguh LNG’s complete capability to 11.4 million tons each year.
In the meantime the carbon seize, utilization and storage (CCUS) portion of the UCC venture is anticipated to sequester roughly 15 million metric tons of carbon dioxide in its preliminary section. The CCUS element will seize emissions from the gasoline portion of the venture.
“This venture not solely unlocks a incredible gasoline useful resource, it additionally represents an Indonesian first by means of using CCUS to maximise gasoline restoration”, BP chief govt Murray Auchincloss stated.
Accepted by the federal government August 2021, the UCC venture could have three injection wells, one offshore injection platform, one offshore CO2 pipeline and onshore services for CO2 removing, processing and compression, BP stated.
BP is the operator of the Tangguh manufacturing sharing contract (PSC) with a 40.22 p.c stake. The companions are MI Berau B.V. (16.3 p.c), CNOOC Muturi Ltd. (13.9 p.c), Nippon Oil Exploration (Berau) Ltd. (12.23 p.c), KG Berau Petroleum Ltd. (8.56 p.c), Indonesia Pure Gasoline Assets Muturi Inc. (7.35 p.c) and KG Wiriagar Petroleum Ltd. (1.44 p.c). The Tangguh PSC encompasses the Berau, Muturi and Wiriagar PSCs.
In 2022 the Southeast Asian nation prolonged the Tangguh PSC by 20 years to 2055.
To contact the writer, electronic mail jov.onsat@rigzone.com
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