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KBR awarded pre-FEED contract for Abadi LNG
2018/05/08
KBR announced that it has been awarded a pre-FEED contract by INPEX for the Abadi onshore LNG project.
KBR announced that it has been awarded a pre-FEED contract by INPEX for the Abadi onshore LNG project in the Arafura Sea in Indonesia.
“Under the terms of the contract, KBR will provide a cost competitive, pre-FEED package utilizing its well proven design and execution methodologies,” KBR said, adding that it will provide services including site master plan development, scope of work for the FEED phase as well as an EPC schedule and cost estimate.
This work is expected to be performed within approximately six months, with KBR performing studies to establish configuration of the LNG process plant, supporting utilities, and product storage and export facilities.
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Backgrounds:

On 19-Oct-2017, Indonesian energy ministry announced that it has agreed with Inpex to extend the company's contract to operate the Masela natural gas (Abadi LNG) project by up to 27 years once it expires in 2028.
The ministry extended the contract for 20 years and then added seven more to compensate for an earlier government mandate for the project to be built on land rather than as a floating facility that had been proposed earlier.
"This decision related to Inpex will give a 20-year extension to Inpex because their contract is almost over, with an additional seven years as compensation for changing the refinery development scheme from floating to land-based.”
On 8-Nov-2017, INPEX reported that it has been preparing Abadi LNG project’s Pre-FEED work based on an onshore LNG development concept as the project “was listed as a national strategic project by the Indonesian government in June 2017 and listed as a priority infrastructure project in September 2017.”
On 30-Mar-2018, INPEX announced that it is set to commence Pre-FEED work for the Abadi LNG project, the Masela Block, located in the Arafura Sea in Indonesia.
“INPEX will formulate a detailed revised plan of development (POD) contingent on the results of the Pre-FEED work and ongoing discussions with the Indonesian authorities to achieve a cost efficient and economically competitive project,” the Japanese operator said, adding that following government approval of the revised POD, a series of subsequent evaluations including FEED work will be carried out leading to a final investment decision (FID).
In September 2015, INPEX submitted a revised POD envisioning a larger 7.5 MMT/Y LNG processing capacity of a Floating LNG (FLNG) to the Indonesian government authorities. In April 2016, the authorities responded by instructing the company to re-propose the POD for the Abadi LNG project based on an onshore LNG development scheme.
Following constructive discussions with the authorities that included agreeing to the need for an economically viable project, INPEX is now set to commence Pre-FEED work based on an onshore LNG development scheme with an LNG production capacity of 9.5 MMT/Y. The impact of this matter on the company’s consolidated financial results is minimal.
Related Stories:

INPEX to revise Abadi LNG development’s plan (LU: 14-Nov-2016)
Indonesia to extend Masela (Abadi) LNG contract

Source(s) INPEX, GLNGI Staff, KBR