The schedule for Inpex’s Abadi LNG project in eastern Indonesia is set to be delayed due to the effects of the coronavirus. One of the key constraints Inpex faces is the inability to carry out two field surveys on Abadi, located on the remote Masela block, that were scheduled to be completed this month. However, there is some positive news as the upstream regulator SKK Migas is working with the operator to find a way forward.
SKK Migas head, Dwi Soetjipto, stated that “The field survey could not be carried out because of COVID-19. We are in discussion with Inpex not to back down.” The surveys, would have required some 200 workers, but because of current social distancing regulations which have impacted the globe, they are now postponed indefinitely.
Dutch geo-data specialist Fugro had been contracted to perform geophysical and geotechnical surveys and the associated studies needed to support the FEED work for the offshore production facilities and the subsea pipeline to the onshore LNG terminal.
Inpex had been expected by early 2020 to be progressing the FEED tenders for the main elements of the Abadi project. One or more of these contracts could roll over into the engineering, procurement and construction workscope. On the table are expected to be FEED contracts for a large floating production, storage and offloading vessel; the onshore liquefaction plant; offshore gas export pipeline; and the subsea umbilicals, risers and flowlines package.
Despite the delays wrought by the current market uncertainty, SKK Migas hopes Inpex will take a final investment decision for Abadi LNG in the fourth quarter of 2022, with construction set to start the following year.
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by Harry Topham