Eni in market for key subsea contract

The deepwater project envisages exploiting the 2 trillion cubic feet of gas reserves in the Ganal production sharing contract via subsea wells tied back to Eni’s existing Jangkrik floating production unit.

Developing the Gendalo and Gandang fields will enable Jangkrik’s current plateau production of around 750 million cubic feet per day of gas to be extended by at least 15 years. Produced volumes will be delivered via pipeline to be utilised as feedstock at the Bontang LNG project in East Kalimantan.

Eni has now hit the market with an engineering, procurement, construction and installation (EPCI) tender for a prized subsea umbilicals, risers and flowlines (SURF) package for its Gendalo-Gandang project.

The prequalification notice states that the scope of work includes — but will not be limited to — project management, project planning and project control; detailed engineering, construction and installation engineering; and advanced engineering for procurement and construction.

The successful contractor or partners will also be tasked with supporting Eni in obtaining all relevant permits and authorisations; procuring materials and equipment such as flexibles; onshore fabrication and construction including jumpers; transportation to site for installation; installation; pull-in of offshore umbilicals and risers from the FPU along with setup/repair; and offshore pre-commissioning and support for commissioning and start-up.

The tender, which is being conducted under the work procedure guidelines of Indonesia’s upstream regulator SKK Migas, stipulates the contract requires a minimum local content (TKDN) of just 10%. Prospective bidders have until 20 June to submit their statement of interest, and those companies that pass the prequalification stage can then participate in the tender process.

Eni is expected this year to take the final investment decision to exploit Gendalo-Gehem. The Italian company operates the Ganal PSC with an 82% interest and on behalf of sole partner Tip Top (Sinopec) on 18%.

The Jangkrik FPU currently receives gas produced from Eni’s Jangkrik, Jangkrik North East, Merakes and Merakes East fields, while its Maha field is under development.

Compatriot Saipem fabricated the topsides for the Jangkrik FPU under an engineering, procurement and construction contract in partnership with Tripatra Engineers & Constructors and Chiyoda, while the hull was built by Hyundai Heavy Industries in South Korea.

The Jangkrik floater, which was delivered in 2017, is deployed in a water depth of 1600 metres. Its original nameplate capacity was 450 MMcfd of gas plus condensate but the optimised floater can today handle 750 MMcfd of gas.

Eni has been operating in Indonesia since 2001 and currently has a large upstream portfolio including exploration, development and producing assets with current output of around 700 MMcfd in East Kalimantan.

The Italian major is in talks with Malaysia’s national energy company Petronas to establish a joint venture holding company to oversee selected upstream assets in Indonesia and Malaysia. This JV is expected to generate substantial synergies towards becoming a major liquefied natural gas player in the region and will combine approximately 3 billion barrels of oil equivalent of reserves with an additional 10 billion boe of potential exploration upside, Eni last month said.