Technip, Worley and Wood Group compete to win Chevron's FEED projects

US super major Chevron Corp. has short-listed contractors to carry out front-end engineering design (FEED) for its deepwater gas project known as Indonesia Deepwater Development (IDD) in Makassar Straits, East Kalimantan, a senior official with upstream oil and gas authority BPMIGAS said.

BPMIGAS Vice-Chairman Hardiono told Petromindo.Com that Chevron Indonesia Company (CICO) selected Technip and WorleyParsons as contractor candidate to carry out FEED for the project?s floating production unit (FPU). One of the companies will be named as winner. Hardiono, however, said both companies committed administrative flaws in their bidding proposals, which may lead to re-tender.

Hardiono said that Chevron has also proposed WorleyParsons and Wood Group as candidates to carry out sub-sea FEED for the project.

He added that CICO is also in the process of evaluating bidders for the project?s export pipeline FEED. ?We do not know yet which companies would be short-listed as the bidders are still being technically evaluated,? he said.

The project, known as Indonesia Deepwater will be the first deepwater subsea mega project in Indonesia. The project will require development capital of US$7-8.5 billion and first gas is estimated 6.5-8 years from PoD approval. PoD for the project was approved by the government last year.

The project would extract 2-4TCF of gas in the form of development of 5 integrated gas fields in Chevron?s 4 PSCs namely Muara Bakau PSC, Makassar Strait PSC, Ganal PSC and Rapak PSC.

Gas from the fields will boost supply to Bontang LNG plant. (godang)