Originally 18 Bidders targeting West Sepat PETRONAS gas project. Now 3 bidders i.e. Saipem/SapuraKencana, McDermott/THHE and Technip/MMHE are selected for design competition for FEED and then roll to EPCIC. A pre-qualification call for a $1.5 billion fast-track high carbon dioxide gas development at the West Sepat field off Malaysia is expected to draw submissions this week from as many as 18 leading names in the domestic and international contracting scene. Petronas has organised a shortlisting exercise through the Petroleum Management Unit for a front-end engineering and design competition, which will eventually lead to the award of an engineering, procurement, construction, installation and commissioning contract for an unidentified high carbon dioxide gas field development. The unidentified gas field is understood to be the gas leg of the producing Sepat oilfield now being developed using a mobile offshore production unit and floating storage offloading vessel. The first phase of the West Sepat gas field development anchors on a central processing platform with an acid gas removal unit weighing in at more than 27,000 tonnes. The central processing platform will come with a flare tower and be bridge-linked to a wellhead platform under the first development phase. A second wellhead platform will be tied to the anchor production facility via a 12-kilometre flowline. Gas will be exported using two 200-kilometre pipelines of 10 inches and 24 inches wide to an existing gas terminal in Terengganu, which will undergo modification to receive the output from West Sepat. Petronas, headed by chief executive Shamsul Azhar Abbas, has sought to cast a wide net by reaching out to both domestic and international contractors. Engineering outfits, yard operators and offshore installation contractors are understood to be among the 18 players to have registered initial interest as Upstream went to press. The Malaysian unit of Norway’s Aker Solutions has been deemed as an early front runner, given its involvement in conceptual studies for West Sepat. US-based Bechtel is also said to be among the contenders as it eyes a bid in its attempt to break into Malaysia’s offshore sector. Other long-time Petronas-licensed engineering contractors potentially in the fray include Technip, MMC Oil & Gas Engineering, Petrofac-RNZ and Ranhill WorleyParsons. The FEED contest is widely expected to be led by yard operators, which will account for the bulk of the EPCIC work on the project. In the queue for a space in the design competition are first-tier Malaysian yard operators, Malaysia Marine Heavy Engineering and SapuraKencana as well as Pulau Indah-based THHE, which is expected to team up again with McDermott of the US. South Korean trio Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering and China’s Offshore Engineering Company are also all in the fray. Singapore-based pair SMOE and Dyna-mac as well as Italy’s Saipem are also likely to be eyeing participation in the tender. Technip, McDermott, Saipem and SapuraKencana’s TL Offshore as well as Leighton Offshore will also be prime contenders for the offshore installation component of the West Sepat development. Sepat gas is said to contain more than 40% carbon dioxide. The gas leg of the producing oilfield has been ranked as the third largest high CO2 gas field in a published Petronas study. Some sources suggest the Sepat CPP may also serve as a hub for neighbouring green and brownfield developments. Including the front-end engineering and design phase, the West Sepat gas development is expected to take over three years to deliver, suggesting first gas is likely to flow at the earliest by 2016.
Posted on: Sat, 11 Oct 2014 11:19:12 +0000
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