Indonesian government freezes PTTEP licenses

4 December 2016 03:31


Indonesian government freezes PTTEP licenses

The digital map cases of pollution in the Timor Sea PTTEP Australasia project which was not resolved since 2009

Kupang, East Nusa Tenggara (ANTARA News) – The Indonesian government has finally decided to freeze the licenses and assets of PTT Exploration and Production (PTTEP) operations in Indonesia.

“This is an extraordinary step that we had never predicted before. The decision was taken during a coordination meeting on maritime affairs led by the coordinating minister for maritime affairs Luhut Binsar Panjaitan in Jakarta,” the chairman of West Timor Care Foundation, Ferdi Tanoni, told ANTARA News here on Saturday (Dec. 3).

The Indonesian government was forced to take legal action, as Montara PTTEP Australasia oil operator failed to take up the responsibility of an oil spill incident that had affected almost 90 percent of Timor Sea waters in August 21, 2009.

“This is a humanitarian tragedy, which is difficult to explain, because people living in the coastal areas of East Nusa Tenggara had to live for more than seven years in misery due to the Montara oil spill,” he said.

The coordination meeting was attended by officials of maritime affairs, including the attorney generals office, the East Nusa Tenggara province, 13 representatives from districts and cities in the province, and fishermen affected by the incident represented by the West Timor Care group.

Tanoni stated that the decision to freeze the licenses and assets of PTTEP by the government would be immediately consolidated by the National Team for the Settlement of the Dispute over the Montara Oil Spill Incident in 2009 in Timor Sea, led by Havaz Oegroseno, the first deputy of maritime defense, with the office of the coordinating minister for maritime affairs.

As a representative of the people of East Nusa Tenggara, who had fought for justice for more than seven years, Tanoni lauded the decision of Panjaitan, who had directly ordered his staff to take firm action against PTTEP immediately, for taking the responsibility to prevent pollution in the Timor Sea.

“We have waited for the firm action of the government of President Joko Widodo for more than seven years, and it is only now that we realize the governments support in our fight for justice,” he added.

The writer of a book titled “Timor Sea Scandal, An Economic-Political Barter between Canberra and Jakarta,” said Panjaitan has expressed regret over the protracted settlement of the case.

“It is the responsibility of the Indonesian government to protect the people of East Nusa Tenggara who are affected,” he said.

He said the National Team for the Settlement of the Dispute over the Montara Oil Spill Incident in 2009 would immediately coordinate with the prosecutors office to submit an application to the Central Jakarta district court to freeze the licenses and assets of PTTEP.

(Reported by Kornelis Kaha/Uu.H-YH/INE/KR-BSR/A014)


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BP acquires Repsol’s stake in Tangguh LNG project

Mon Dec 5, 2016 | 2:57pm GMT


British oil company BP has acquired Spanish group Repsol’s 3.06 percent stake in the Tangguh liquefied natural gas (LNG) project in Indonesia for $313 million dollars, a BP spokesman said on Monday.

The purchase lifts operator BP’s stake in the plant to a little more than 40 percent. The Tangguh plant processes 7.6 million tonnes of LNG a year.

In June BP gave the go-ahead for the $8 billion expansion of Tangguh’s third LNG train, one of only a handful of major investment decisions in the sector this year as companies trim spending in response to a protracted slump in oil prices.

Repsol, which announced the deal on Friday evening, said the transaction will generate $26 million in pre-tax capital gains.

(Reporting by Ron Bousso; Editing by David Goodman)

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Successful production from Petronas’ first floating lng facility

December 10, 2016, Saturday

Petronas delivers a game changer in the global LNG business with the successful production of LNG from its first floating LNG facility, PFLNG SATU.

PETRONAS delivers a game changer in the global LNG business with the successful production of LNG from its first floating LNG facility, PFLNG SATU

KUCHING: Petroliam Nasional Bhd’s (Petronas) first floating liquefied natural gas (LNG) facility, PFLNG Satu has achieved an industry breakthrough with the successful production of its first drop of LNG from the Kanowit gas field, offshore Sarawak on 5 December 2016.

The operational milestone marks a decade long journey for Petronas since conceptualising a floating LNG facility to maximise the potential of remote and stranded gas reserves to deliver a game changer in the global LNG business.

Petronas’ acting vice president LNG assets, development and production Adnan Zainal Abidin said the first drop of LNG from PFLNG Satu has realized the technological aspirations of the company to tap hydrocarbons and produce LNG close to the source.

“At 365 metres long and with 22 modular systems, PFLNG Satu is an engineering marvel that brings together the liquefaction, production, storage and offloading processes of LNG to the offshore gas field.

“We have successfully stretched the limits of our abilities with floating LNG technology to maintain our technical edge as a key LNG supplier,” said Adnan.

PFLNG Satu reached its final stages of Commissioning and Startup with the introduction of gas from the KAKG-A central processing platform at the Kanowit gas field on 14 November 2016. The gas is treated and liquefied via its mitrogen-based Liquefaction Unit – the heart of PFLNG Satu, and processed into the first drop of LNG.

With a processing capacity of 1.2 million tonnes per annum (mtpa), operating at water depths between 70 metres to 200 metres deep, PFLNG Satu is expected to lift its first cargo and achieve commercial operations in the first quarter of 2017.

The floating LNG facility will grow Petronas’ global LNG portfolio as a leader in FLNG technology and enhance its reputation as a preferred and reliable LNG supplier.

Meanwhile, in a separate statement, Petronas has confirmed that it has been awarded deep water Block 4 and Block 5 in the Gulf of Mexico’s Salina Basin, following Mexico’s first ever auction of its deep water exploration areas.

Block 4 has been awarded to a 50:50 partnership between PC Carigali Mexico Operations, SA de CV (Petronas Mexico), a wholly owned subsidiary of Petronas, and Sierra Oil & Gas S de RL de CV (Sierra).

Block 5, on the other hand, was awarded to a consortium led by Murphy Sur, S de RL de CV (30 per cent), with partners Petronas Mexico (23.34 per cent), Ophir Energy (23.33 per cent) and Sierra Offshore Exploration (23.33 per cent).

Petronas Mexico will be the operator of Block 4, an area of about 2,600 square kilometres in water depths of between 800 metres and 1,600 metres.

The initial exploration period for the block is four years where Petronas Mexico and Sierra will concentrate on seismic data acquisition and processing.

Block 5, which covers an area of about 2,600 square km in water depths of 700 metres to 1,100 metres, will be operated by Murphy Sur, with an initial exploration period of also four years including a work program commitment of one well.

Petronas’ Vice President of Exploration, Upstream, Emeliana Rice-Oxley conveyed appreciation towards Mexico’s authorities for the opportunity to participate in the bid and the tender process.

“Petronas’ entry into Mexico’s deep water arena provides a strategic fit for our business growth, focusing on upstream exploration opportunities and portfolio with potential for long-term value,” said Rice-Oxley.



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Shell begins production from Malikai offshore platform in Malaysia

Image: Malikai TLP drills wells with the help of a ‘tender assisted drilling’ vessel seen on the right. Photo: courtesy of Shell

December 16, 2016

Shell has started oil production from the Malikai Tension-Leg Platform (TLP), which is located 100km off the coast of Sabah, Malaysia.

Malikai is located in waters up to 500m deep and is the company’s second deepwater project in Malaysia, after the start-up of the Gumusut-Kakap platform in 2014.

Designed and built in Malaysia, the platform is expected to have a peak production of 60,000bpd.

Shell upstream director Andy Brown said: “Malikai marks an important milestone for Shell, its partners, Sabah and Malaysia.

“The project has demonstrated our capability in delivering competitive deep-water projects utilising our global expertise.”

It features a new platform design and a set of risers, or pipes that connect it to the wells for oil production.

Shell operates the Malikai project with 35% interest. Other partners are ConocoPhillips Sabah (35%) and Petronas Carigali (30%).

Shell’s deepwater business currently produces 600,000boe/d, which is expected to increase to more than 900,000boe/d by 2020.

Other Shell-operated projects are Coulomb Phase II and Appomattox in the US Gulf of Mexico.

Malikai’s TLP is a vertically floating structure moored by groups of tethers at each corner and is coupled with a tender assisted drilling (TAD) rig.

It has a fit-for purpose riserless vessel to perform top hole operations.

The Malikai oil field is part of the Block G production sharing contract awarded by Petronas in 1995.


Also: from PETRONAS

Petronas Achieves First Oil Production From Malikai Field

Published on Thursday, 15 December 2016 08:57

KUALA LUMPUR: Petronas today announced that the Malikai field, Malaysia’s first Tension Leg Platform (TLP) for deep-water project, achieved its first oil production on Dec 11.

In a statement today, the national oil company said the field, located 100 kilometres offshore Sabah, was part of the Deep-water Block G area where oil was first discovered in 2004.

“Malikai is the fourth deep-water project successfully implemented in Malaysia after Kikeh, Siakap-North Petai and Gumusut Kakap fields,” it said.

Petronas Vice-President of Malaysia Petroleum Management Muhammad Zamri Jusoh said Malikai’s development was one of the key elements of the Sabah integrated oil and gas project initiated by Petronas.

“Thanks to the support from Shell and partners, ConocoPhilips and Petronas Carigali Sdn Bhd, Petronas was able to pursue the Malikai development as a tieback to the Kebabangan platform for oil processing, prior to further export to the Sabah-Sarawak Integrated Oil and Gas Project.

“We would like to congratulate them on this achievement and for their collaborative efforts in bringing this new resource to the nation.

“Development of these hubs have generated significant value to Petronas and the nation as we strive to exploit more deepwater opportunities in Malaysia, especially in Sabah waters,” he said.

The Malikai’s TLP was designed and fabricated in Malaysia and is capable of handling up to 60,000 barrels of oil equivalent per day.

The field is operated by Shell (35 per cent), ConocoPhilips Sabah (35 per cent) and Petronas Carigali Sdn Bhd (30 per cent).

-Astro Awani



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APLNG 2nd train starts production


Image courtesy of Origin Energy

ConocoPhilips-operated Australia Pacific LNG project said Monday it had produced the equivalent of a cargo of liquefied natural gas from the second train at its facility on Curtis Island near Gladstone.

Australia Pacific LNG CEO, Page Maxson, said the second train had produced 150,000 cubic metres of LNG, equivalent to the volume required to fill an LNG ship.

The second train is up and running, enabling our LNG facility on Curtis Island to deliver commercial quantities of LNG at sustained output from both trains.”

As the largest producer of natural gas in eastern Australia, we are underpinned by a world-class coal seam gas resources position. We currently provide approximately 25 percent of domestic gas to the east coast market, with sufficient reserves to meet both LNG and domestic demand,” Maxson said.

With the commencement of train two operations, approximately 200TJ/day of equity gas that was previously directed to the QGC sales contract will become available to Australia Pacific LNG.

Australia Pacific LNG said it recently successfully completed the 120-day operational test period relating to the first train at the LNG facility. This is the critical test set forth in the
project financing completion agreements. The completion of all tests for the first train is expected in coming weeks.

LNG production from Australia Pacific LNG’s first train began in December 2015 and the first LNG cargo was exported in January 2016.To date Australia Pacific LNG has loaded a total of 47 cargoes.

At full capacity, the A$25 billion (US$17 billion) LNG project will be producing 9 mtpa of the chilled fuel.

Australia Pacific LNG is a joint venture between Origin (37.5%), ConocoPhillips (37.5%) and Sinopec (25%).

APLNG 2nd train starts production


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First Gas for World’s First Operational FLNG



By MarEx 2016-11-18 17:11:01

Petronas’ first floating liquefied natural gas (FLNG) facility, PFLNG Satu achieved its first gas milestone this week at the Kanowit gas field, offshore Sarawak, Malaysia.

The introduction of gas from the KAKG-A central processing platform at the field ignited the PFLNG Satu flare tower at the height of 130 meters, proving the technological aspirations of Petronas to unlock gas reserves in Malaysia’s remote and stranded gas fields, said the company in a statement.

The 365 x 60 x 33 meter (1,198 x 197 x 108 feet) unit made its 2,120 nautical mile journey from Okpo, South Korea, to the Kanowit gas field in May this year. Fitted with an external turret for water-depths of between 70 meters and 200 meters deep, PFLNG Satu will extract natural gas via a flexible subsea pipeline for the liquefaction, production, storage and offloading processes of LNG at the offshore gas field.

Designed to last up to 20 years without dry-docking, PFLNG Satu has the flexibility to be redeployed to multiple locations to better access marginal and stranded gas fields of Malaysia.

FLNG Projects Underway

Shell’s Prelude FLNG is expected to be installed in Australia in 2018. Other liquefaction vessels currently under construction and due to start-up before the end of 2018 include Perenco’s GoFLNG, and Exmar’s FLNG (Caribbean FLNG). However, Exmar is currently in talks with several parties regarding the final deployment of its unit due to the termination of an initial agreement with Pacific Exploration and Production for its use offshore Colombia. Other projects currently under construction but experiencing considerable delays include Ophir Energy’s Fortuna FLNG and Petronas’ Rotan FLNG (PFLNG 2). Eni is expected to make its final investment decision on its $5-billion Coral South liquefaction vessel offshore Mozambique in 2017.

Douglas-Westwood predicts that despite concerns over the fall in LNG spot prices and the lack of sanctioning for new floating liquefaction projects, global capex on FLNG units will total $41.6 billion over the period of 2016-2022. Continued industrialization in Africa, Asia, and Latin America is expected to lead to an upsurge in demand for import units. In line with this, countries in Africa such as Benin, Ghana, Ivory Coast, and South Africa are expected to have their first floating import vessels installed before the end of 2022.

Many current FLNG projects have opted for newbuilds. However, the two proposed units in Africa have chosen converted LNG carriers for fields in Cameroon and Equatorial Guinea. Africa will account for 49 percent of floating liquefaction expenditure over the forecast period. Yet, most of the East African projects – which account for the majority of expenditure – are at an early stage.

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Petronas achieves first gas at maiden FLNG facility from Kanowit gas field

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