MTC makes its first foray into FPSO deployment outside Malaysia
Malaysian oil and gas marine contractor MTC Engineering (MTCE), an affiliate of MTC Group, has secured its first FPSO development project in Indonesia through a consortium. This will be the firm’s third FPSO project so far and the first one in Indonesia.
MTC reported on Tuesday that it had secured a bid for its third FPSO development and first FPSO project outside of Malaysia. The latest award is for the FPSO Forel, which will be deployed at the Forel field in South Natuna Block B, Indonesia.
After a lengthy bid throughout the majority of last year, Medco E&P, a subsidiary of Medco Energi, selected the consortium – including MTC Engineering, PT Hanochem Tiaka Samudera and PT Cakra Bahana – as its contractor of choice for this project.
To remind, Medco Energi inked a deal to buy two subsidiaries of ConocoPhillips back in September 2016, allowing it to get a stake in the South Natuna Sea Block B, offshore Indonesia. However, this is not the only time that the Indonesian player acquired some of the oil major’s assets, as the firm also bought ConocoPhillips’ oil and gas assets in Indonesia for $1.36 billion last month.
Based on the terms of the deal, the consortium began the work on the FPSO on 17 March 2022 to deliver it within 21 months. The FPSO will be chartered to Medco E&P and operated by the consortium for five years with an option to extend this even further. Based on MTC’s statement, the production capacity for the FPSO will be designed for 10,000 bopd and 43 MMscfd.
The Malaysia engineering contractor’s Project Management Team is stationed in Jakarta with the consortium partners and the Kick-Off Meeting (KOM) was held last Thursday to officialize the project.
Moreover, MTC Engineering has been specializing in FPSOs since its inception, securing consultancy works for operators around the world and even developing two of its own FPSOs – Nautica Muar and MTC Ledang – for Malaysian waters.
MTC explains that the pandemic has put a halt to much of the industry’s progress, however, it seems that the tides are finally changing. The firm believes that the successful delivery of FPSO Forel will be further proof of the accolades and milestones the company has achieved throughout its 12 years.
Meanwhile, MTC also says that it is the sole bidder for Petronas Carigali’s Limbayong FPSO project together with its partner S.P. Engineering Services. This will be the firm’s first deepwater development off the coast of Sabah.