- Upstream reported that US independent Hess has begun the
tender process for the first of three contracts tied to the subsequent phased
development of nine gas and condensate fields across three offshore blocks in
the North Malay basin off Peninsular Malaysia.The nine fields include the
Bergading field in Block PM 325, the Bunga Dahlia and Teratai discoveries in Block
PM 302, and six other finds in Block PM 301 - Gajah, Melati, Kamelia, Zetung,
Anggerik and Kesumba.
- Hess has pushed ahead with a revised, phased,
multi-platform development for Bergading to host a wellhead platform and a central
processing platform (CPP) tied in to up to 10 other satellite structures.The
first phase involves fabrication and installation
of Bergading’s host facilities and three wellhead platforms at the Zetung,
Anggerik and Kesumba fields (ZAK).
- Hess has lined up three separate engineering, procurement,
construction, installation and commissioning contracts tied to the this phase
covering Bergarding’s CPP and wellhead platform, in-field and export lines
connected to ZAK. Invitations to tender are understood to have been issued to
as many as 100 Petronas-licensed engineering outfits, yard operators and
transport and installation contractors to register their interest in the ZAK
tender by the end of this week. A separate design competition is likely to be
called for the Bergading CPP later this year. But unlike the ZAK tender, which
has been limited to only Petronaslicensed players, the Bergading tender is
expected to be extended to international contractors. We expect local bidders
for the first of the three initial EPCIC contracts, scheduled to be awarded in
3Q2013, to be SapuraKencana Petroleum, Malaysia Marine & Heavy Engineering
and TH Heavy Engineering.
- Offshore installation is targeted from 4Q2014, suggesting
production start-up could be in 1H2015.The multi-field project was originally
planned to focus on a CPP at the Kamelia field in Block PM 301.That proposal
evolved into the current multi-plaform scheme calling for the CPP to be
relocated to Bergading plus a early production system — comprising Ezra’s Lewek
Arunothai floating production, storage and offloading vessel (awarded via a
40%-owned associate of Perisai Petroleum) and a SapuraKencana-built wellhead
platform — to bring Kamelia on stream around mid-2013. The Kamelia EPS is
projected to produce 40 million cubic feet per day of gas.
- Hess, which earmarked US$400mil annually from 2013 through
2015 for the North Malay basin development, had
previously flagged a peak production rate of 125 MMcfd when the full
field development is complete in 2015, although the design capacity for the
Bergading CPP is understood to be around 450 MMcfd. Another US$250mil has
already been set aside for the Kamelia early production system, now expected to
come on stream by mid-2013. Hess and Petronas Carigali are equal sharing
partners in the North Malay basin project.
- These developments reaffirm our views that the momentum of
new contract rollouts has shifted from pure fabrication to offshore
installation works in the sector’s value chain over the next six months. The
hook-up, commissioning and maintenance works, which include the replacement of
expiring long-term contracts, are likely to materialise towards the end of this
year. Petronas and its production-sharing contractors are currently holding an
open Pan-Malaysian tender for hook-up, construction and commissioning (HUCC)
works potentially worth RM8bil-RM10bil, with interested bidders including SapuraKencana Petroleum, Dayang
Enterprise, Petra Energy, and possibly, Shapadu. We maintain our Neutral stance
on the sector with our top BUYs being SapuraKencana and Dialog Group.
Source: AmeSecurities
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