Conoco awards Indonesia contracts

Conoco Inc. has awarded two engineering, procurement, construction and installation (EPCI) contracts for the USD 1.6 billion Belanak offshore natural gas development. The company has awarded a USD 587 million contract for a floating production, storage and offloading (FPSO) unit to PT Brown & Root Indonesia and a USD 157 million contract for two wellhead platforms and associated pipelines and oil offloading buoy to PT J. Ray McDermott Indonesia. The EPCI contracts support two separate natural gas sales agreements, both supplied by the Conoco-operated South Natuna Sea Block B PSC. The first natural gas sales agreement is a 22-year contract between Pertamina and Singapore’s SembCorp Gas for the long-term delivery of natural gas to Singapore.
The second agreement is a 20-year contract between Pertamina and Malaysia’s state oil and gas company Petronas for the delivery of natural gas to Malaysia. With expected ultimate production of about 600 billion cubic feet of natural gas, and 100 million barrels of oil, condensate and liquefied petroleum gas, or LPG, Belanak is the cornerstone for supplying future natural gas under both agreements, and for the development of extensive reserves of liquids in the South Natuna Sea Block B PSC. The Belanak FPSO will process up to 350 million cubic feet of natural gas a day for export, up to 100,000 barrels of oil and condensate a day, and up to 23,000 barrels of LPG a day. The 1000-foot vessel will have the capacity to store up to one million barrels of oil, which will be off-loaded to tankers for onward transportation. It will be installed and ready for production in late 2004.

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