Page 8 - AsianOil Week 48 2021

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SKK Migas has said the industry would However, the technology’s commercial
need to reduce its emissions by focusing on viability for a wide variety of upstream
CCUS technology, eliminating gas flaring, projects is still unproven. Indeed, Soet-
reducing methane leaks and planting man- jipto said the technology needed to
grove trees. demonstrate that it was efficient “before
Soetjipto said: “Emission reduction efforts we talk about incentives”.
and carbon capture are no longer a choice but Indonesia’s state-owned Pertamina said in
an obligation.” early November that the cost of installing the
SKK Migas planning deputy Benny Lubi- country’s first two CCUS projects at the Gundih
antara, meanwhile, said: “We imagine it will be and Sukowati oil and gas fields could be as much
required for all plans of development to include as $500mn.
CCUS. It is going to be a typical offering because The projects are separate from Pertami-
of net-zero.” na’s memorandum of understanding (MoU)
CCUS is fast turning into a silver bullet on CCUS with US super-major ExxonMo-
for the oil and gas industry, with producing bil, which was signed on November 2 during
countries across the Asia-Pacific banking on the COP26 summit in Glasgow. The agree-
its development over the coming decade to ment committed the companies to evaluate
help ensure their natural resource industries the potential for large-scale deployment of
remain relevant in the coming decades. low-carbon technologies in Indonesia.™

Petronas kicks off FEED competition

at nearshore LNG project

PROJECTS & MALAYSIA’S state-owned Petronas has
COMPANIES awarded two front-end engineering and design
(FEED) contracts for its nearshore liquefied nat-
ural gas (LNG) project in Sabah State.
The two contracts, one of which was awarded to
a consortium consisting of Japan’s JGC and South
Korea’s Samsung Heavy Industries (SHI) and the
other to Italy’s Saipem, are actually part of an inter-
national dual FEED design competition for the
LNG project, Petronas revealed on December 1.
The state major said: “The FEED design com-
petition is expected to take place over the course
of 10 months, with the final investment decision
(FID) planned for end of 2022. Subject to FID,
the winning FEED contractor will be rolled over
to the engineering, procurement, construction
and commissioning (EPCC) phase.” In other news, Petronas announced last week
Petronas wants the nearshore LNG plant – that Thailand’s state-owned PTTEP had made
which it has said will have a minimum capacity an offshore gas discovery at its Nangka-1 wildcat
of 2mn tonnes per year (tpy) and will be the first exploration well in shallow-water Block SK417,
of its kind in Malaysia – to be ready for start-up located about 180 kilometres off the coast of
by end of 2026. Sarawak. PTTEP operates SK417 with an 80%
As plans stand, the facility will increase Pet- stake, while Petronas Carigali holds the remain-
ronas’ FLNG production capacity from 2.7mn ing 20%.
tpy to 4.7mn tpy. Nangka-1 was successfully drilled to a total
The major added that it expected the near- depth of 3,758 metres in September 2021, the
shore plant’s design and construction to be company said on November 30, adding that
simpler and it had the potential for improved sweet gas was discovered in the Middle to Late
production uptime compared to an offshore Miocene Cycle VI clastic reservoirs. It said the
floating LNG (FLNG) facility owing to its loca- discovery further validated the hydrocarbon
tion within a protected bay area. potential in the surrounding areas.™

P8 www. NEWSBASE .com Week 48 03•December•2021