M3nergy may be appointed to provide LPG FSO for Belanak

Upstream oil, gas authority BPMIGAS may order ConocoPhillips to directly appoint contractor to provide LPG FSO vessel for its Belanak oil, gas field in South Natuna Sea Block B after the second tender failed to produce winner, a BPMIGAS senior official said.

Vice-Chairman Hardiono told Petromindo.Com that the second re-tender for the LPG FSO provision failed as only Malaysian firm M3nergy Bhd and Norway firm BW Offshore participated in the tender. BW Offshore also pulled out from the re-tender due to specification difference.

?As the tender has been failed two times, there?s a possibility to directly appoint M3nergy to provide LPG FSO for Belanak if their specification fit,? Hardiono said, adding that evaluation on the specification is underway.

The LPG FSO vessel will have capacity to process 500 MMCFD of raw gas, 100,000 BPD of oil and 23,000 BPD of LPG.

In a tender announcement in 2009, ConocoPhillips said the vessel will be leased under a Time Charter contract of fifteen years with two annually renewable options to extend the contract to 2028. (bernard)