The Kasawari project is the second such project in the area. known as Block SK316.
The tender for the project, expected to be out by May this year, is for the parallel front-end engineering and design (FEED) studies to build a multi-platform project at the field.
AmResearch noted that Technip took the lead in the conceptual studies of the Kasawari field development, while the JV between Technip and MMHE had eventually secured the contract for the first standalone multi-platform development in Block SK316.
“We believe they stand as the most likely candidates to secure this project,” it’s analyst Alex Goh said in note.
An online industry magazine recently reported that at least three local firms - MMHE, SapuraKencana Petroleum Bhd and and TH Heavy Engineering Bhd - have been invited by Petronas Carigali to participate in a pre-qualification exercise for the project.
The Kasawari project, estimated to be worth some RM3bil, involves a 30,000-tonne eight-legged central processing platform (CPP) which has topsides that weigh 19,000 tonnes, a nine-slot wellhead platform, a bridge link, a flare tower and a central collection platform. Other overseas players such as Hyundai Heavy Industries, Samsung Heavy Industries, and Daewoo Shipbuilding & Marine Engineering could also be involved.
According to the report, Petronas has limited participation to contractors with at least 10 years of experience in handling projects involving carbon dioxide removal process.
This is given that gas from the Kasawari field has high carbon dioxide content, which could be more costly to extract and produce.
AmResearch’s Goh opined that the winner for this parallel FEED contest would also stand the best chance to secure the EPCIC (engineering, procurement, construction, installation and commissioning) contract for the project.
Goh said the EPCIC job is likely to be awarded in the second half of 2015.
Meanwhile, CIMB Research analyst Norziana Mohd Inon expects Petronas’ capital expenditure (capex) in the upstream segment could keep O&G service providers on their toes.
“We learned that over the next five years, Malaysia’s upstream capex could reach US$60bil, including investments in enhanced oil recovery projects at the Guntong, Angsi and Dulang fields following the success at Tapis,” she said fresh from the recent Offshore Technology Conference (OTC) Asia.
Refinery and Petrochemical Integrated Development (Rapid) project, Petronas’ downstream project, could top US$50bil in capex by 2020, which is 150% more than the initial target of US$20bil. Although pleasantly surprised on the potential higher capex, Norziana noted that Petronas has targeted to spend it by 2020.