Eni has awarded an integrated engineering, procurement, construction, transportation and installation (iEPCI) contract to TechnipFMC for the Merakes gas project located offshore Indonesia.
TechnipFMC did not disclose the exact contract value for the Merakes gas project but indicated that it is in the $500m-$1bn range.
The contract will include five deepwater wells in 1,500m water depth, and their 50km tie back to the existing Jangkrik Floating Production Unit (FPU) at the Jangkrik field.
TechnipFMC’s scope will be engineering, procurement, installation and pre-commissioning of subsea trees, a manifold, umbilicals and distribution hardware, large bore deepwater high pressure flexible lines, flexible risers, flowlines, jumpers and other subsea equipment.
TechnipFMC subsea president Arnaud Piéton said: “This award demonstrates our leadership in iEPCI: an example of how through collaboration and engagement with our customer, we’re simplifying subsea field architecture, enabling long tie-backs and accelerating time to market for their production, all important drivers for Eni and Indonesia.
“We are proud to count Eni as a client for iEPCI and honored to help them in developing these resources through our integrated approach and to support the Indonesian expansion.”
In December 2018, the Indonesian government approved Eni’s investment plan for the Merakes gas project, which calls for the development of the Merakes field.
The gas field is located in the East Sepinggan block in the Kutei Basin in Makassar Strait, offshore the East Kalimantan province. Discovered in 2014, the Merakes field is estimated to contain nearly two trillion cubic feet of lean gas.
Gas drawn from the Merakes project will be delivered to the Bontang LNG plant by using existing facilities of the Jangkrik field and also the East Kalimantan transportation network.
Production from the Merakes gas project is targeted for the second half of 2020.
Eni, through its subsidiary Eni East Sepinggan, is the operator of East Sepinggan block with a stake of 85%. It is partnered in the offshore Indonesian block by Pertamina Hulu Energi East Sepinggan, which owns the remaining stake of 15%.
In December 2018, Eni announced a new gas discovery in the East Sepinggan block through the drilling of the Merakes East prospect. The Italian oil and gas giant said that the location of the new gas discovery near the Merakes field will help in maximizing the synergies among subsea infrastructures.