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INPEX launches FLNG FEED for the Abadi LNG project, the Masela Block, Indonesia

Wednesday, Jan 23, 2013

INPEX CORPORATION (INPEX) is pleased to announce today that its affiliate INPEX Masela, Ltd. (INPEX Masela) has awarded contracts for the Front End Engineering and Design (FEED*) of its Floating LNG ("FLNG") facility for the development of the Abadi LNG Project in Indonesia.

Following the launch of the SURF FEED work announced on 26 November 2012, the launch of the FLNG FEED work means the Project has fully started the overall engineering work for the future development of the Abadi gas field.

The FLNG FEED covers the front end engineering work of a floating production facility where natural gas is processed, liquefied, stored and offloaded.

The FLNG FEED contract has been awarded to two Groups. One Group is led by a world-leading engineering company JGC Corporation / PT JGC Indonesia and the other Group is led by another world-leading engineering and oil & gas contracting service company PT Saipem Indonesia / Saipem s.a. These two Groups will conduct the FLNG FEED in parallel under a design competition. In order to keep the project schedule and to ensure consistency of engineering technology applied, it is intended that one of the Group will continue into the FLNG EPC (Engineering, Procurement and Construction) phase. Therefore, it is envisioned that the FLNG EPC contract will be awarded to the Group that provides technical and commercial superiority based on its overall design solution for the FLNG facility.

Commencing the FEED for FLNG production facilities following the SURF FEED will definitely contribute to ensuring the successful start-up of the Abadi LNG Project. This progress is a part of the continuous enhancement of INPEX’s E&P activities as one of the measures for growth, which is in line with the "Medium- to Long-Term Vision of INPEX" announced in May 2012. INPEX continues to seek support from the Indonesian Government and other stakeholders for a successful commercial production from the Abadi LNG Project.

Source: INPEX CORPORATION

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