Six consultants compete for Masela block project
Monday, October 19 2015 - 02:05 AM WIB
The paper quoted Djoko Susilo, Director for Upstream Oil and Gas Development at the Ministry of Energy and Mineral Resources? Directorate General of Oil and Gas, as saying that the six consultants include US-based Flour, Bechtel, IHS, AT Kearney, Deloitte Advisory, and Scotland?s Wood Mackenzie.
He said that the ministry has yet to decide which of the six consultants would be appointed to carry out the Masela block technology assessment.
Japan?s Inpex Corp, the operator of Masela block, has proposed for a 7.5 million-ton per annum floating LNG (FLNG) facility in developing the Abadi gas field in the Masela block under a revised plan of development (POD) that was supposed to be decided by the Ministry of Energy and Mineral Resources October 10.
The ministry has decided to delay the decision following criticism from Coordinating Minister for Maritime Affairs Rizal Ramli, who insisted on the use of on-shore technology arguing that it would provide greater benefits for the country.
President Joko Widodo then instructed Minister of Energy and Mineral Resources Sudirman Said to appoint a world-class independent consultant to assess the two technology options. Sudirman said earlier that the consultant was expected to complete the study in two months in the hope that decision could be made at the end of this year.
The upstream oil and gas authority SKK Migas has recommended the use of the FLNG technology as it is much cheaper than its onshore counterpart. The capital expenditure for FLNG is estimated at US$14.8 billion, while developing an onshore facility on Aru Island is estimated at $22.3 billion.
The FLNG would also provide greater benefits for the country including in terms of capacity expansion of domestic shipyards as the top side modules for the planned floating LNG facility would be developed at home, and in helping to develop the country?s marine engineering capacity, which is in line with the President?s vision of developing modern marine transportation system in the country known as ?maritime highways.? (*)