Timas Suplindo set to take TSB-2 contract

Lowest bidder Swiber ‘derailed by financial woes’ — leaving Indonesian player sitting pretty for offshore gas project work

Indonesian contractor Timas Suplindo is set to win a subsea umbilical, riser and flowline engineering and installation contract for Kangean Energy’s Terang Sirasun Batur phase two (TSB-2) gas project off Indonesia.

When the bids were opened last year Timas Suplindo had been a close second-lowest commercial bidder, offering a price for the job of $129.6 million, compared to low bidder rival Swiber’s $117.8 million.

However, Swiber’s financial woes are understood to have derailed its earlier expected victory and the operator is now believed to have selected Timas Suplindo for the Java Sea project.

The TSB-2 workscope is said to include engineering and installation of rigid pipelines, four segments of infield flexible flowlines and several subsea umbilicals. It also involves the tie-in of flexible pipes and umbilicals to christmas trees and the tie-in of the TSB-2 flowline and subsea control system to the existing TSB phase one system.

The subsea production system will tie in the Sirasun and Batur shallow-water satellite fields to the existing production facilities at the Terang gas field on the Kangean production sharing contract.

Three subsea trees are to be installed on Sirasun and one on the Batur field.

US-based Dril-Quip’s wholly-owned subsidiary, Dril-Quip Asia Pacific, together with its local representative, earlier won a $40 million contract to supply TSB-2’s subsea production system. SURF-related work is due to start without delay while installation is set for completion in 2018 ahead of start-up that same year, said partner Japex.

Timas Suplindo performed extensive SURF work on the original TSB development under a $140-million contract.

Kangean Energy’s co-venturers are already considering development options for the West Kangean gas field, while observers are keen to learn the outcome of the recent tight hole drilled on South Saubi, a large nearby oil prospect.

Kangean Energy comprises Indonesia’s Energi Mega Persada with a 50% stake and Japan’s Mitsubishi and Japex on 25% equity apiece.

Meanwhile, sources have suggested that Swiber is unlikely to complete any of its previously secured jobs, and all are being re-tendered by their respective operators.

India’s Oil & Natural Gas Corporation has already cancelled its contracts with Swiber for the C-26, Daman and PRP-4 projects, with the C-26 transportation and installation contract now in the hands of SapuraKencana, while the other work will soon be re-tendered.

Total recently awarded subsea pipeline work on its Al Khalij project off Qatar to US contractor McDermott — a job that had earlier been won by Swiber.

Swiber’s judicial managers said they would be applying for a further extension from 23 March 2017, previously granted by Singapore’s High Court, to lay a statement of proposals to creditors and convene a creditors’ meeting.