Santos to tie-in Maleo field to E. Java Gas Pipeline
Friday, March 4 2005 - 02:00 AM WIB
Santos (Madura Offshore) Pty Ltd, the operator for the Madura Offshore PSC, opened an Engineering, Procurement, Construction and Installation (EPCI) tender for the construction of sub sea pipeline for gas supply from the Maleo field offshore East Java.
?The proposed schedule for this EPCI Contract award June 2005 with completion required by March 2006,? Santos said in a tender announcement on Thursday.
According to Santos, the 8 km 14-inch diameter sub sea pipeline will connect the Maleo Offshore Production Unit (MOPU) to the 28-inch diameter East Java Gas Pipeline (EJGP).
The EJGP, which is owned and operated by the state-owned oil and gas company PT Pertamina, stretches 440 km from Kangean Island near the island of Madura to East Java's mainland, passing through a 370-km offshore section. The pipeline has a capacity of 600 million cubic feet of gas per day (mmcfd).
The pipeline channels the gas from PT Energi Mega Persada-operated Pagerungan field mainly to the Gas and Steam Power Plant in Gresik, Petrokimia Gresik, and state-owned gas distributor PT PGN?s customers in Surabaya.
Santos said Thursday the installation of the hot-tap shall take place without disrupting normal operating conditions of the EJGP.
Santos and PGN have signed a Heads of Agreement for the sale of the entire gas reserves of the Maleo field, which is estimated, to contain in between 213 and 315 billion cubic feet of recoverable gas.
The Maleo project is expected to deliver up to 100 mmcfd for more than five years.
Santos? tender announcement indicates that it will soon sign a gas purchase agreement with PGN.
Santos operates Madura PSC, where the Maleo gas field is located, with 75 percent of working interest. The remaining 25 percent interest is owned by Canadian top oil producer Talisman Energy. (robert)