ExxonMobil awards two big contracts for Tapis

The Malaysian unit of Exxon­Mobil has awarded two key contracts linked to its enhanced oil recovery project at the Tapis field off Peninsular Malaysia.

ExxonMobil is pursuing a water-alternate-gas EOR project to lift output at the largest producing oilfield in Malaysia.

Malaysia Marine & Heavy Engineering (MMHE) won a 1.4 billion ringgit ($449 million) turnkey contract for two new offshore platforms.

MMHE will carry out construction and offshore installation of a central processing platform, Tapis R and a smaller riser platform, Tapis Q.

Tapis R comprises an 18,000-tonne integrated deck with living quarters for 145 personnel.

The topsides will include modules with capacity for 360 million cubic feet of gas compression and 260,000 barrels per day of water injection, Exxon­Mobil revealed at an industry conference in Kuala Lumpur earlier this year.

MMHE will also handle the float-over installation of the Tapis R topsides over a six-legged jacket.

The jacket fabrication contract was intended to be awarded to Malaysia’s Sime Darby. However, Sime Darby’s fabrication facilities in Pasir Gudang have been acquired by MMHE.

Industry sources suggest Exxon­Mobil is re-considering the possibilities with Lumut-based Kencana Petroleum to diversify its project risks.

Tapis Q is a smaller platform on a four-legged jacket, which will be bridge-linked to the Tapis R CPP and existing Tapis B platforms.

The platforms are to be installed on location by 2013, together with a 50-kilometre pipeline network to distribute gas and water injection from Tapis R.

An export pipeline will also be installed to carry crude from Tapis R.

Malaysia’s Shapadu Energy and Engineering has won the second contract for modifications and retrofit work at the existing Tapis platforms to tie in the pipelines and subsea cables and to install new or upgraded facilities for the EOR process. ExxonMobil and Petronas have committed $2.1 billion to a major enhanced oil recovery project at Tapis and six other oil and gas fields — Seligi, Guntong, Semangkok, Irong Barat, Tabu and Palas.

A separate water-alternate-gas project has been pencilled in for the Guntong field.

Tapis, as the largest of the seven producing fields, has been the foremost candidate for secondary recovery techniques.

Production start-up at Tapis EOR is scheduled for 2013.

ExxonMobil and Petronas have also committed more than 10 billion ringgit in new oil and gas assets to help ensure energy supplies for Malaysia.

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