Malaysian national oil company Petronas is keeping alive the proposed Kelidang deep-water gas project off Brunei with innovative thinking on a potential development concept.

There was limited activity in 2019 and 2020 on the project — which has been on hold for some time — although it is understood that engineering work was done in continuation of pre-front end engineering and design work performed by Norway's Aker Solutions.

UK-based TechnipFMC still lists Kelidang as being among major potential subsea opportunities, although one that would be more than two years away from any award. It also said the contract could be worth up to $500 million.

Petronas has been sounding out select oilfield services players about an appropriate solution for the main production facility at Kelidang, said contracting sources.

One of those options is based on a so-called “i-hub” concept that has been employed with success elsewhere, including in the US Gulf.

Contracting sources said the concept involves the use of a leased existing asset secured on an engineering, procurement, construction and installation basis.

Several major oilfield contractors — both in Southeast Asia and the US — were suggested as parties that are taking a keen interest in Kelidang, but their identities could not be confirmed as Upstream went to press.

There is also a move under way to identify available floating production units that could be tailored for Kelidang, said sources.

Petronas has previously put out market enquiries for a leased floating production unit — either a newbuild or conversion — for Kelidang.

Sources have said previously the field development plan will require up to six subsea christmas trees that will be installed in water depths of around 2000 metres and linked to the floater, which could be a semi-submersible production platform or a floating production, storage and offloading vessel.

Petronas and its Block CA-2 joint venture partners Shell, Murphy Oil and Brunei National Petroleum Company (Petroleum Brunei) are looking to place the floater in about 150 metres of water with a network of flowlines connecting it to the deep-water wells.

Production rates at upwards of 450 million cubic feet per day of gas have been touted for Kelidang, with volumes potentially piped to the five-train Brunei liquefied natural gas plant at Lumut.

Sources said that Petronas could be struggling to secure a gas sales agreement from Block CA-2, given there are some political complications between the governments of Brunei and Malaysia.

The Kelidang Cluster hosts discoveries including Kelidang, Keratau, Kempas and Keratau SW, containing several trillion cubic feet of gas of reserves.

Field Development

Petronas gets creative as it seeks to unlock deep-water Brunei field