KBR-led consortium named Tangguh EPC winner

Upstream oil and gas authority BP Migas said on Friday that it, together with BP Plc., had appointed a consortium led by engineering firm Kellog, Brown & Root (KBR) winner of Tangguh LNG EPC project.

?The consortium offers lowest price,? BP Migas senior official Trijana Kartoaatmodjo told Petromindo.Com. He, however, did not reveal the contract price, saying that there are more details to be discussed regarding the matter.

According to Trijana, the consortium members are KBR, Japan Gas Corp. and local engineering firm PT. Pertafenikki Engineering.

KBR beat two other consortia which are led by Chiyoda Corp. and Bechtel Corp.

Trijana did not say when the project would commence.

Tangguh LNG plant will be located in Berau Bay in the easternmost province of Papua. The plant will be able to produce 7 million tons of LNG per year from two processing train. Once complete, Tangguh will join Arun and Bontang as Indonesia's third LNG center. Tangguh LNG is operated by BP Plc.

The Tangguh gas fields contain 18.4 trillion cubic feet (TCF) of independently certified proved and probable natural gas reserves, with an additional 5.4 TCF of possible reserves already identified.

A two train initial development of the Tangguh LNG plant will involve more than US$ 1.5 billion of investment with additional investment required to develop the gas production facilities.

Tangguh has secured 2.6 million tons per annum LNG contract supply to the Chinese province of Fujian for 25 years, starting 2006-2007, but is looking to find more market for its excess capacity. (godang)