Japanese exploration and production company Inpex is moving its operated Abadi liquified natural gas (LNG) project in Indonesia toward final investment decision (FID) through the award of competitive front-end engineering design (FEED) contracts.
The Abadi LNG project plan, approved by Indonesian authorities in December 2023, includes a floating production, storage, and offloading (FPSO) vessel to handle production from the field in water depth of 400–800 m; subsea umbilicals, risers, and flowlines (SURF); an onshore LNG plant; and a gas export line from the FPSO to the onshore facility along with a carbon dioxide pipeline from the onshore plant to an injection well.
The Abadi LNG project in the Masela block offshore Indonesia is expected to produce approximately 9.5 million tons of LNG per year, 150 MMcf/D of pipeline gas, and 35,000 BOPD.
To increase competition for the project, which has both offshore and onshore scopes, Inpex said at the beginning of August that it had created a competitive dual-FEED phase for the FPSO and the onshore LNG facility, whereby two consortia will propose solutions for different scopes of the development. The consortium delivering the most technically and commercially compelling FEED proposal will be selected to execute the subsequent engineering, procurement, and construction phase. All FEED packages will integrate carbon capture and storage components, Inpex said.
Saipem is the most recent company to announce receiving a FEED contract, following announcements from KBR and Samsung earlier this month.
Saipem’s PT Saipem Indonesia leads a consortium that includes PT Tripatra Engineers and Constructors, PT Tripatra Engineering, and PT McDermott Indonesia, and Saipem announced on 12 August that this group had won a FEED contract for the Abadi FPSO. The other FPSO FEED contract went to a consortium led by PT Technip Engineering Indonesia that includes PT Technip Indonesia and PT JGC Indonesia. The FPSO FEED scope includes reviewing and defining the offshore production facility specifications. Inpex announced the FPSO FEED contract award recipients on 4 August.
A KBR-led consortium won a FEED contract for the onshore LNG facility, and a consortium led by Japanese company JGC Holdings that includes PT Technip Engineering Indonesia won the other onshore LNG FEED contract. On 7 August, KBR announced it will collaborate with Samsung E&A and PT Adhi Karya on the FEED services for the onshore LNG facility. Inpex announced the LNG FEED contract award recipients on 6 August.
INPEX announced on 4 August that it had selected Worley for the gas export pipeline and SURF scopes.
The Abadi field was discovered in 2000. Inpex operates the project with 65% interest on behalf of partners PT Pertamina Hulu Energi Masela with 20% interest and Petronas Masela with 15% interest.
