SKK Migas: EPC projects at Banyu Urip behind schedule
Wednesday, October 23 2013 - 04:05 AM WIB
Upstream authority SKK Migas said that the EPC-1 to EPC-5 works at the Banyu Urip field within the Cepu block in the border areas of Central and East Java jointly operated by Mobil Cepu Ltd and PT Pertamina EP is behind schedule.
SKK Migas is currently assessing what causes for the delay in a bid to help resolve the problems. ?The EPC at the Cepu Block is indeed behind schedule,? Head of Project Management Division at SKK Migas, Rudi Riambono told Petromindo.com Wednesday. He did not provide further details.
A source told Petromindo.com that the EPC-1 to EPC-5 have been behind schedule because one of the contractors is facing financial difficulties. ?Mobil Cepu has handed over this problem to Pertamina,? the source said.
But Pertamina EP Operational Director Amran Anwar claimed that the consortium of contractors is financially solid to carry out the project. ExxonMobil Indonesia, the parent of Mobil Cepu, has yet to be able to reach for comment.
The Banyu Urip development is divided into five phases:
1. EPC-1 for Production Facilities Processing worth $ 746.3 million
2. EPC-2 for the EPC Offshore Pipeline Facilities (72km): $ 60 million
3. EPC-3 for the EPC Offshore Pipeline Facilities (23km) and Mooring Tower: $ 120 million
5. EPC-4 for FSO (Floating Storage and Offloading): $ 300 million
4. EPC-5 for Infrastructure Facilities: $ 95 million.
The EPC-1 tender is won by Tripatra-Samsung Consortium. The signing of the EPC-1 contract was conducted in August 2011. However, the realization of this project only started in December 2012 due to licensing issues with the Bojonegoro government.
Mobil Cepu Ltd. (MCL) is targeted to complete EPC-1, 2, 3, 4 and 5, in August 2014.
Editing by Reiner Simanjuntak