Husky looking for green light over Madura fields

Calgary-based Husky Energy is seeking regulatory approval for the proposed floating production development of the Madura MDA and MBH gas and condensate fields, as it pushes on with tenders for the Madura BD discovery off East Java, Indonesia.

Sources said the final development plan, submitted to Indonesia’s upstream regulatory body BPMigas, includes a floating production unit plus one platform each at MDA and MBH.

The FPU is designed to handle 175 million cubic feet per day. Production from MDA is expected to be around 110 MMcfd with another 55 MMcfd from MBH.

Gas at the MDA and MBH reservoirs is understood to contain low carbon dioxide and almost no trace of sulphur.

The production facilities will be equipped with dehydration and compression units to process production before final export to East Java via the existing pipeline network.

The development of MDA and MBH has been put on the regulatory fast-track, with BPMigas expected to complete the review of the plan of development in the second quarter.

Industry sources expect that a tender could be issued as early as the fourth quarter of this year for a leased or newbuild FPU, plus the fabrication of the two wellhead platforms.

CNOOC’s Offshore Oil Engineering Corporation was initially tasked with undertaking conceptual design for both MDA and MBH, and the contract awarded in September 2011 was rolled over to the front-end engineering and design phase. The MDA and MBH discoveries lie in the Madura Strait PSC, also home to the Madura BD gas and condensate field for which Husky is pushing on with tenders for a separate floating production, storage and offloading vessel and wellhead platform.

The Madura BD FPSO is expected to process 110 MMcfd of gas, 8000 barrels per day of condensate and 2500 bpd of produced water, as well as store up to 370,000 barrels of condensate. Five individual and group bidders have been invited to submit technical bids in June.

The Madura BD FPSO bidder list includes Armada Gema Nusantara, an Indonesian unit of Malaysia’s Bumi Armada; M3nergy partnered with Indonesia’s Aquaria Shipping; and Indonesia’s Pelayaran Trans Parau Sorat with partners Pelangi Niaga Mitra, BW Offshore and CETS Investment Management.

The other two groups are Tanker Pacific Offshore Terminals with Indonesia’s Samudera Petrindo and Sillo Maritime Perdana of Indonesia with Emas Offshore Construction and Production, Samsung C&T and Federal Offshore Service. The FPSO contract will run for a fixed 10-year term, plus options to extend for up to five years. The contract is expected to be awarded in September. The vessel delivery is projected for 28 months later.

Husky has pre-qualified seven individual and group bidders separately for a contract on the planned wellhead platform.

Gunanusa has teamed up with TL Offshore, Meindo Elang Indah with Swiber Offshore, while Bakri Construction has partnered Timas Suplindo. Pal Indonesia has formed a bid consortium with compatriot, Supasi Widya Engineering and COOEC.

Nippon Steel Construction Indonesia and Saipem qualified as lone bidders, while Punj Lloyd is participating through its Indonesian subsidiary, Semec.

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