Friday, 8 February 2013

Oil & Gas Sector - Bergading CPP and Angsi CEOR tenders on the way OVERWEIGHT


-  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 

No comments:

Post a Comment