Conoco ships Indonesia's gas production unit

Conoco ships Indonesia's gas production unit

JAKARTA (JP): Conoco has inaugurated its technologically-
advanced moveable offshore gas production unit, or MOgPU, for use
in the company's Indonesia West Natuna Sea Block B fields.

The MOgPU was built by Hyundai Heavy Industries in Ulsan,
Korea, with the inauguration marking the completion of
construction, the company said in a press statement.

The unit sailed Tuesday for Indonesia, slated to arrive in
early April in the West Natuna Sea, where it will begin its field
commissioning phase.

The MOgPU, named "Hang Tuah" after a legendary 14th century
Indonesian Admiral known for his adventurism and bravery, was
developed after Conoco led negotiations to bring about the first
export sale of pipeline gas from Indonesia to Singapore.

The agreement, signed in early 1999, culminated two years of
planning to develop a project capable of delivering 325 million
cubic feet of natural gas per day from Indonesia's West Natuna
Sea to Singapore.

First gas, scheduled for July 2001, will be piped to Singapore
via the 400-mile-long West Natuna Transportation System, one of
the world's longest subsea pipelines.

The WNTS is a joint venture between Conoco Indonesia Inc.
Ltd., (operator of the pipeline), Premier Oil, and Gulf Indonesia
Resources, in support of Pertamina, Indonesia's state-owned oil
company.

"Indonesia has been one of the world's largest producers of
natural gas over the past 10 years, with known gas reserves that
exceed 100 trillion cubic feet.

The lack of a suitably developed domestic market, combined
with the lack of a gas export pipeline system, prevented most of
the gas from being developed," said Rob McKee, Conoco executive
vice president, worldwide exploration and production.

"With the early completion of the WNTS last December, and
production through Hang Tuah beginning later this year, there is
now a vital link between an abundant supply of natural gas and a
growing market for clean and efficient fuel."

In 1999, the Conoco-operated Natuna Sea Block B Production
Sharing Contract (PSC) group signed a 22-year natural gas sales
contract with Pertamina to sell gas to Singapore.

Then, in October 2000, Conoco-operated Block B was named the
sole supplier of natural gas in a 20-year Indonesia-to-Malaysia
sale.

"Conoco is establishing Southeast Asia as our fourth worldwide
significant business area," said McKee. "Over the past two years
alone, we have made several discoveries offshore Indonesia that
are expected to more than double the gas reserves dedicated to
the Singapore and Malaysian sales contracts. We also have added
to our significant positions in Vietnam and Malaysia."

Traditionally, offshore platforms require heavy construction
equipment with large barges and cranes for on-site installation,
plus extensive hook-up and commissioning efforts.