The liquefaction unit, dubbed PFLNG2, will exploit US independent Murphy’s Rotan field and gas from three satellite structures — Alum, Bemban and Buluh — under a phased development.
First LNG is expected in 2018, two years after the original schedule. Block H is also home to the Biris gas discovery, although this could be developed as a tie-back to the existing Kebabangan project facilities.
The Block H project “is now fully sanctioned by both parties and the oil-linked gas terms agreed”, said Murphy chief executive Roger Jenkins.
Petronas, which will operate the FLNG vessel, is finalising a deal with the consortium of South Korea’s Samsung Heavy Industries and JGC of Japan for the construction of PFLNG2.
Upstream last September tipped the duo for the PFLNG2 contract but the award is understood to have been held up as the two contractors and Petronas try to find a compromise on the final price.
The contract, which is now expected to be concluded towards the end of the month, has an estimated value of less than $2.5 billion, according to sources.
Delivery of PFLNG2 is targeted for the first half of 2018.
As with PFLNG1, which will be deployed on the Kanowit field off Sarawak, East Malaysia, and is expected to come into operation next year, Petronas will likely look to the offshore division of its shipping unit, MISC, for operational support for PFLNG2.
PFLNG2 will have a design capacity of 1.5 million tonnes per annum, slightly larger than PFLNG1. Front-end engineering and design for the Block H unit was performed under two parallel competing contracts by JGC with Samsung and a quartet comprising Japan’s Toyo Engineering, Modec and IHI Shipbuilding with US-based CB&I.
Partners in the Block H production sharing contract are operator Murphy with 60% and Malaysia’s national upstream company Petronas Carigali on 40%.
Murphy is also said to be considering FLNG as one of two development options to exploit gas discovered in Block CA-2 in the Malaysia and Brunei Darussalam commercial arrangement area.
Gas discoveries on Block CA-2 include Kelidang, Kempas and Keratau and there is exploration upside on the block.
Sources confirm there are commercial gas volumes on this block, although they suggest that the discovered gas will be committed to the Brunei LNG project.
Partners in Block CA-2 are PetroleumBrunei, Petronas and Murphy.