The New York- based Hess Coporation (Hess) and the Malaysia national oil company (NOC) Petronas are reaching the final investment decision (FID) stage with the Bergading project to develop the natural gas and condensate in the North Malay Basin offshore the Malaysia Peninsula.
As part of the Block PM325, Bergading has been ranked as the largest discovery in the North Malay Basin.
Owned through their 50/50 joint venture CH Mutiara, Hess and Petronas estimate the North Malay Basinreserves to 1.3 trillion cubic feet (tcf).
Because of its large size and the number of different fields, Hess and Petronas intend to develop theNorth Malay Basin in phases.
For this second phase, Hess and Petronas has decided to include the Zetung, Angerik and Kazumba (ZAK) fields together with Bergading.
The ZAK fields will be equipped with eight slot unmanned wellhead platforms, one per field.
These three wellhead platforms will then be connected to the Bergading central processing platform (CPP).
From Bergading, the condensate will be exported by a floating storage and offloading (FSO) vesselwhile the gas will be exported through the 230 kilometers pipeline system identified as the Thai-Malaysia Joint Development Area Gas Balancing Evacuation (JDA-GBE) project.
This JDA-GBE pipeline system is already in construction under the operatorship of the Trans Thai-Malaysia (TTM) company.
Owned 50/50 by PTTEP from Thailand and Petronas from Malaysia, the TTM joint venture has been established by the two countries to unlock the exploration and production of the oil and gas in their disputed territorial waters called Joint Development Area (JDA).
Hess and Petronas to award Bergading EPCIC contract with the critical infrastructures taking place, Hess and Petronas are willing to proceed with the execution phase of the Bergading project in awarding its engineering, procurement, construction, installation and commissioning (EPCIC) contract.
Malaysia is racing to develop its natural gas resources to remain a net gas exporter despite the development of its own consumption for the power generation and newborn petrochemical industry.
In this context, Hess and Petronas qualified last year teams of international companies with local contractors and shipyards to perform a competitivefront end engineering and design (FEED) onBergading.
In conclusion of this competitive FEED the qualified companies were expeted to submit their best offer to execute the Bergading EPCIC contract.
In the case of Bergading, Hess and Petronas evaluate the not only the technical and commercial offers as usual, but also the propositions to maximize the local content in Malaysia.
Based on this competitive FEED, the Bergading gas and condensate project should include:
- A wellhead platform
- A gas central processing platform (CPP)
- A bridge between the two platforms
- The connection to the JDA-GBE export pipeline system
The Bergading central processing platform is designed for a capacity of 450 million cubic feet per day (cf/d)of gas.
This CPP will be equipped with specific modules for the separation of the carbon dioxide and the mercury from the natural gas.
The topsides should weight 20,000 tonnes supported by a jacket estimated to 8,000 tonnes.
From the seven teams pre-qualified, Hess and Petronas has kept only two to reach the final stage of the competitive FEED process and submit an EPCIC offer for Bergading.
Hess and Petronas are planning to make the final investment decision in May 2014 and sanction theBergading CPP EPCIC contract in following for a first production expected in 2017.
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