Japan's Inpex awards subsea FEED contract for Abadi LNG project to Wood Group

Tokyo (Platts)--26Nov2012/358 am EST/858 GMT


Japan's largest upstream company Inpex said Monday it has awarded a front end engineering and design contract to UK-based engineering firm Wood Group, for subsea production facilities at the Abadi LNG project in Indonesia.

Under the contract, Wood Group Indonesia, a subsidiary of the UK-based John Wood Group engineering company, will undertake the subsea FEED for approximately 12 months. The contract covers detailed engineering work for SURF, or a subsea production system, umbilicals, risers and flow lines, the company said.

Inpex said Monday that the company was still in the process of selecting a separate FEED contractor for floating LNG facilities at the Abadi gas field located in the Masela block, Arafura Sea, Indonesia. The stage-1 development plan for a 2.5 million mt/year floating LNG facility was approved by Jakarta in December 2010.

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Inpex also said its project schedule after the FEED, including a final investment decision and production startup schedules, will be determined based on FEED results

The Abadi LNG Project is operated by Inpex with a 60% stake, Shell owns 30% and Indonesia-based Energi Mega Persada the remaining 10%.

--Takeo Kumagai, takeo_kumagai@platts.com --Edited by Haripriya Banerjee, haripriya_banerjee@platts.com