The tender process for the engineering, procurement, construction and installation contract for the Gajah Baru platforms is complete and the award is awaiting partner and BP Migas approval.
However the market for platform fabrication and installation in South-East Asia is still tight and the platforms will be more expensive than envisaged and will take longer to build than planned.
Even thought rig dayrates and development drilling costs are lower, Gajah Baru (New Elephant) will now cost an estimated 10% to 15% more.
