BP selects bidders for Tangghu LNG FEED competition
The International Oil Company (IOC) BP and its partners in the Tangguh Expansion Project are currently qualifying the engineering companies to be invited to bid (ITB) on the onshore Tangguh third LNG Train and the production platforms to be installed offshore the Irian Jaya District of the West Papua Province of Indonesia
Since 2007, the two trains Tangguh liquefied natural gas (LNG) plant is operated by BP with 37.16% working interests.
With BP the Tangguh joint venture represent mostly stakeholders coming from Asia:
- Mitsubishi Inpex Berau B.V with 16.30%
- China National Offshore Oil Corporation (CNOOC) 13.90%
- Nippon Oil Exploration Limited and Japan Oil, Gas and Metals National Corporation through Nippon Oil Exploration (Berau) Ltd 12.23%
- Mitsui & Co. Ltd., and Japan Oil, Gas and Metals National Corporation through KG Berau/KG Wiriagar 10%
- Sumitomo Corporation and Sojitz Corporation through LNG Japan Corporation 7.35%
- Talisman 3.06%
The Tangguh LNG plant is mostly supplied in natural gas from two offshore platforms producing natural gas and condensate from the large Vorwata field lying across the Berau-Bintuni Bay.
In August 2012, BP and its partners started to work on the third Tangguh LNG Train project and decided to proceed by competitive front end engineering and design (FEED) in order to save time on the execution phase.
Two new platforms to supply Tangguh LNG Third Train
In June 2013, BP and its partners selected three consortia to be invited to bid (ITB) on this FEED competition for the Tangguh Third LNG Train.
This third LNG Train should have the same size as the first ones with a capacity of 3.8 million t/y.
BP is planning to get the technical and commercial offers of the three bidders in September 2013 for this onshore Tangguh Expansion Project estimated to require $7.8 billion capital expenditure,
By the end of the year, one or two of the three consortia will be invited to perform the FEED and to submit their proposal for an engineering, procurement and construction (EPC) contract in following.
This Tangguh Third LNG Train will be supplied in natural gas by two additional offshore platforms to be installed in 50 meters of water depth over three separate fields: Wiriagar Deep, Roabiba and Ofaweri.
All together with the Vorwata field already in production, these three fields discoveries are estimated to contain 14.4 trillion cubic feet (tcf) proven reserves of natural gas.
With more than 3,000 tonnes of topsides each, these production platforms will be connected to the Tangguh LNG Plant through 24-inch and 16-inch pipelines.
WorleyParsons completed the FEED of these platforms in 2013.
Local contractors and international engineering companies have expressed interest for these Tangguh offshore production platforms including:
- Bakrie Industries
- Gunanusa
- Han Jung
- Hyundai Heavy Industries (HHI)
- Meindo Elang Indah
- Nippon Steel
- Pal Indonesia
- Saipem SMOE
- Swibber Offshore with Emas Offshore
- Technip
- TL Offshore
BP and its partners are planning to issue the tender for the Tangguh offshore platforms in September 2013 so that the EPC contract could be awarded on first half 2014 for a completion of the Tangguh onshore and offshore projects in 2017.
