BW Offshore, Kangean Energy sign $875m deal for gas FPSO

A leading provider of oil and gas Floating Production, Storage and Offloading units (FPSOs) BW Offshore has signed approximately an US$ 875 million contract with Kangean Energy Indonesia (KEI) for a gas FPSO to operate on the Terang, Sirasun, Batur (TSB) fields in Kangean PSC, onshore/offshore East Java .

The BW Offshore scope of contract includes the delivery of the FPSO, risers, umbilicals and mooring system, and that the company will also be responsible for the installation and operation of the unit. The design, fabrication and installation of the mooring system will be executed by BW Offshore's technology division APL, the company said in statement on Friday.

The FPSO will have a capacity of 340 mmscfd of gas compression and conditioning, and the gas will be exported to the East Java Gas Pipeline.

The charter contract is for a fixed period of 10 years, plus additional options of up to 4 years, it said

First gas from the fields is planned for early 2012.

The partners of KEI are PT Energi Mega Persada (50.0%), Mitsubishi Corporation (25.0%) and Japan Petroleum Exploration (25.0%). (denny)