BPMIGAS orders Chevron to re-tender IDD FEED

Upstream oil, gas authority BPMIGAS will order US energy major Chevron Corp. to re-tender front-end engineering design (FEED) works for its deepwater gas project in East Kalimantan after BPMIGAS considered the two final candidates failed administratively, a senior BPMIGAS official said on Wednesday.

Vice Chairman Hardiono told Petromindo.Com that BPMIGAS has just decided that tender for Chevron?s Indonesia Deepwater Development (IDD) Floating Production Unit (FPU) FEED has been considered void and re-tender will be announced after Islamic holiday Idul Fitri.

Engineering firms Worley Parsons and Technip, which had been qualified to the final phase failed to meet several administrative requirement, said Hardiono. According to him Worley bid US$20 million to carry out the FEED project while Technip bid $26 million.

Chevron divided the FEED works into two: FPU and sub-sea.

Hardiono said earlier in May that Worley Parsons and Wood Group are the final candidates for sub-sea FEED.

Chevron?s Indonesia Deepwater Development will be the first deepwater subsea mega project in Indonesia. The project will require development capital of US$7-8.5 billion and first gas is estimated 6.5-8 years from PoD approval. PoD for the project was approved by the government last year.

The project would extract 2-4TCF of gas in the form of development of 5 integrated gas fields in Chevron?s 4 PSCs namely Muara Bakau PSC, Makassar Strait PSC, Ganal PSC and Rapak PSC.

Gas from the fields will boost supply to Bontang LNG plant. (bernard)