- Upstream reported
that US-based Hess is expected to announce a tender in the middle of the year
for the anchor production facility at the Bergading field of its North Malay
basin gas development off Peninsular Malaysia. The Bergading field in Block PM 325
is the largest of the nine discoveries earmarked under North Malay basin gas
development.
- The field will host
a central processing platform (CPP) plus a bridge-linked wellhead platform. The
combined weight of the two platforms is estimated at 18,000 tonnes, but the
platform specifications are believed to be still in the works and final tonnage
could be subject to change. Gas will be exported from the wellhead platform
through a 230-kilometre, 28-inch pipeline to the existing terminal in the
Terengganu state.
- Hess is targeting
to call formal bids from international contractors in June or July this year
for a turnkey contract on the Bergading twin platforms. The export pipeline is
expected to fall under Petronas’ umbrella tender for multi-year Pan-Malaysia transport
and installation contracts. Hess issued an earlier tender last November for
three wellhead platforms at Zetung, Anggerik and Kesumba fields to be developed
under the first phase of the North Malay basin gas project. The multi-phase gas
development also includes the Kamelia early production system, due to start up
about mid-2013. Kamelia is being developed using Ezra’s Lewek Arunothai, a floating production,
storage and offloading vessel, now being modified for the field operations, and
a wellhead platform being constructed at SapuraKencana Petroleum’s Lumut yard.
- Meanwhile, Petronas
is planning to finalise contracts for the construction of the world’s first
full-field, vessel-based chemical enhanced oil recovery (CEOR) projects at the
mature, producing Angsi oilfield off Peninsular Malaysia. Malaysia’s MMC Oil
& Gas Engineering and Water Standard of the US have already been working on
front-end engineering and design studies on the Angsi CEOR vessel. The CEOR
vessel will be owned by a joint-venture between Petronas and its shipping unit,
MISC.
- SapuraKencana, was
previously tipped to take on the fabrication of the CEOR topsides modules.
However, Upstream reported that a market survey has also been issued to other
Malaysian yard operators for work on the vessel topsides, estimated to weigh in
at 7,000 tonnes, up from the previous projection of 4,000 tonnes. The topsides
have been broken down into eight packages including owner-furnished equipment.
The topsides comprise water treatment, chemical injection and nitrogen generation
modules and will be installed aboard a converted, ship-shaped vessel. As much
as 160,000 barrels per day of water mixed with an alkaline-surfactant-polymer
cocktail will be mixed on board the CEOR vessel and injected into the Angsi
reservoir to boost oil recovery.
- Separate bids will
be called for the vessel conversion, although Malaysia Marine Heavy Engineering
Holdings is widely considered a front-runner for the contract. The delivery of
the CEOR vessel is scheduled for the end of 2014, but the final startup may
slip into early 2015, taking into consideration the monsoon season in Malaysia.
The vessel is intended to operate on Angsi for the next four years and could be
considered for re-deployment to other CEOR candidates including Shell-operated
St Joseph field. St Joseph is now expected undergo a pilot CEOR process from
2014, followed by full-field application from 2016.
- Given that the pace
of contract news flow is poised to regain momentum over the next few months, we
maintain our OVERWEIGHT call on the sector with BUY calls being SapuraKencana
Petroleum, Alam Maritim Resources, Bumi Armada and Dialog Group.
Source: AmeSecurities
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