Saipem, Chiyoda awarded EPCI Contract for Jangkrik project
Monday, February 24 2014 - 12:16 PM WIB
Italian firm Saipem S.p.A. and Japanese firm Chiyoda Corporation announced on Monday that their subsidiaries PT Saipem Indonesia and PT. Chiyoda International Indonesia have received from Eni Muara Bakau a contract for the Engineering, Procurement, Construction and Installation (EPCI) of a new Barge Floating Production Unit (FPU) for Jangkrik and Jangkrik North East Gas Field Development in East Kalimantan.
The contract is valued at $1.1 billion with a delivery at site ready for SURF hook-up in 34 months. Saipem and Chiyoda collaborate with PT Tripatra Engineering and Construction and Hyundai Heavy Industries Co. Ltd for the project with Sapem as the leader.
The new-build spread-moored FPU will have the capacity to treat 450MMSCFD of gas plus condensates (LPG) and the scope of work includes engineering, procurement, fabrication of the FPU (Hull and Topside) and the installation of a mooring system as well as hook-up, commissioning and assistance to the start-up. Gas produced by the FPU will be delivered through the existing East Kalimantan Pipeline facilities to Bontang LNG Plants, which were constructed by Chiyoda.
The overall Project Management, Engineering and Procurement of the Jangkrik FPU project will be carried out in Jakarta. The topsides fabrication activities will be carried out in Saipem?s Karimun Yard, also in Indonesia, while the hull will be fabricated in HHI?s shipyard in Ulsan, South Korea. Chiyoda Group will make every effort to advance to the EPCI work for this Project, both firms said in a statement.
?This contract is in line with Saipem?s strategy of growth in particular in the Floaters construction in specific geographic areas, such as Asia Pacific and Africa, where the company can leverage on its local well established and unique availability of fabrication yards.
?Asia Pacific represents an important and strategic area of development for Saipem: the company is currently involved in technically complex projects in the area related to various FLNG initiatives,? Saipem said.
Meanwhile Chiyoda said: ?The award of this contract aligns with Chiyoda?s strategy of growth in offshore floater construction in particular, where Chiyoda recently announced in its Mid-Term Management Plan that it would expand its business area to offshore EPCI projects; this Project is the first EPCI Project in the floating business for the Chiyoda group. Chiyoda is accelerating its involvement, in the floating business worldwide with the objective of becoming a leading player through its strategic alliance with Saipem.?
Chiyoda, together with its group companies, has leveraged its extensive experience continuously for over 60 years and is at the forefront of the relentless drive for innovative design and world-class project execution, the firm said.
Muara Bakau PSC is 55 percent owned and operated by Italian firm ENI and 45 percent by GDF Suez.
Editing by Johannes Simbolon