Conoco awards procurement contracts

Conoco awards procurement contracts

SINGAPORE (Dow Jones): Conoco Indonesia Inc. Monday awarded two engineering, procurement, construction and installation contracts worth US$744 million for a floating, production, storage and offloading, or FPSO, unit, and two wellhead platforms, a company spokeswoman said.

Conoco, a contractor of Indonesian oil and gas company, Pertamina in the Belanak Field production sharing contract, or PSC, awarded a $587 million FPSO contract to PT Brown & Root Indonesia, she said.

PT J. Ray McDermott's yard in Batam was awarded the other $157 million contract to build the wellhead platforms, pipelines, and oil offloading buoy, she said.

McDermott's Batam yard - a subcontractor to Brown & Root - will also be fabricating the FPSO topside facilities, a Conoco statement said. The combined fabrication packages will provide 4 million manhours of work to the local Indonesian workforce.

The Belanak field - a $1.6 billion project - will be developed with a FPSO unit with liquefied natural gas extraction facilities, 2 wellhead platforms, 38 wells, a floating storage and offloading unit for liquefied petroleum gas, or LPG, a gas export pipeline and intra-field pipelines.

These facilities will also serve six other fields nearby Belanak field to lower development costs.

Belanak has approximately 550 billion cubic feet of gas, and 100 million barrels of oil, condensate and LPG. An estimated 1.4 trillion cubic feet of gas and 150 million barrels of oil, condensate and LPG in the nearby fields will be produced through the Belanak facilities, according to the company statement.

Conoco Indonesia Inc., a wholly owned unit of Conoco Inc., holds a 40 percent working interest in the South Natuna Sea Block B PSC.