Chiyoda-Synergy JV score Abadi LNG project deal

Japanese oil and gas company Inpex has awarded a pre-FEED contract to the Chiyoda-Sinergy joint venture for the SURF (Subsea Umbilicals Risers and Flowlines) and GEP (Gas Export Pipeline) facilities of the Abadi LNG Project in Indonesia.

Inpex is undertaking Pre-FEED studies for the Abadi field development in the Masela Block, located in the Arafura Sea, with an onshore concept, after it had recently abandoned plans to develop the project using a Floating LNG unit.

Chiyoda and Synergy will provide Inpex with various engineering, safety and cost studies, as well as the development of the future FEED scope of work, as a Pre-FEED package for the SURF and GEP facilities. Chiyoda has said that UK’s Xodus Group and Subsea 7 will deploy their specialized capability for specific studies as nominated subcontractors.

Xodus, in which Chiyoda and Subsea 7 hold 40% and 60% shares respectively, is an international oil & gas and renewables consultancy which will provide the technical leadership, as well as supplying specific studies, based on its deep-water SURF and pipeline design expertise. Subsea 7 will advise on competitive installation solutions as an experienced subsea EPCI (Engineering. Procurement, Construction, and Installation) contractor.

In September 2015 INPEX submitted a development plan for the Abadi project envisioning a larger floating LNG unit of 7.5 million tons per year LNG processing capacity to the Indonesian
government authorities.

In April 2016, the authorities responded by instructing the company to re-propose the POD for the Abadi LNG Project based on an onshore LNG development scheme. INPEX is now working on the Pre-FEED work based on an onshore LNG development scheme with an annual LNG production capacity of 9.5 million tons.