A consortium led by Malaysia-based Bumi Armada won a $1.19 billion lease contract from Husky-CNOOC Madura Limited (HCML) for a floating production, storage and offloading vessel (FPSO).
The consortium will supply a FPSO vessel for a fixed period of 10 years with five optional one year extensions worth a combined $147 million if exercised.
The FPSO will be deployed to the Madura BD field, a natural gas field off the coast of Java.
In 2006, Husky estimated Madura BD held probable reserves of 93 billion cubic feet of natural gas and 6 million barrels of condensate and contingent resources of 422 billion cubic feet of natural gas and 17 million barrels of condensate.
Husky estimated that production at the field would range from 100 to 110 million cubic feet per day of sales gas and 6,000 barrels per day of condensate.
Members of the consortium include Bumi’s subsidiary Bumi Armada Offshore Holdings and its joint venture company PT Armada Gema Nusantara.
HCML is a joint venture between Canada’s Husky Energy and China’s state-owned CNOOC based in Jakarta, Indonesia.
The company has offshore operations in Madura Island and East Java.
CNOOC holds a 40 percent stake in HCML, Husky Oil holds a 40 percent stake and SMS Development, an affiliate of Indonesia-based Samudra Energy, owns a 20 percent share.