contents
INPEX Takes Stake In Prelude
Japanese company INPEX is ramping up its goal to become a 1 MM boed integrated energy company by 2020 by taking a 17.5% stake in Shell's $12.6 B Prelude FLNG project.
The Prelude FLNG project is located in WA-44-L, approximately 475 km north-northeast of Broome, off the coast of Western Australia, consisting of the Prelude gas field and the Concerto gas field, which will be developed utilising a FLNG facility and will produce at least 3.6 MMtpa of LNG, along with 0.4 MMtpa of LPG and approximately 36,000 bpd of condensate at peak.
The Prelude vessel, to be built by South Korea's Samsung Heavy Industries, will be permanently moored about 200 km from the coast during its 25 years of production.
The move is part of its larger strategy to expand its exploration and development activities in the Asia-Oceania area as "one of its core business areas", though it is involved in 70 projects across 26 countries, including projects in the Timor Sea like Ichthys, the Van Gogh, Kitan and Ravensworth projects, Bayu-Undan development and Darwin LNG.
INPEX has been participating in several natural gas development and production projects, including LNG projects, throughout the world. INPEX participates in the Offshore Mahakam and Tangguh LNG projects in Indonesia, Bayu-Undan and Canadian shale gas projects.
INPEX, which made a final investment decision (FID) on its $34 B Ichthys LNG project in Darwin in January 2011, is preparing for the development in Indonesia of its large-scale Abadi LNG project, which it has taken operatorship of.
Shell proved the ideal partner when INPEX was considering the technical characteristics of Abadi, as INPEX said it sees the move as an opportunity to learn from the Anglo-Dutch giant, enhancing its own FLNG experience and in the process assist in the timely delivery of Abadi which will produce 2.5 MM t in its first phase of development.
The Abadi project has come a long way since the Abadi-1 exploratory well was drilled in 2000 and confirmed the presence of gas and condensate. This marked the first discovery of crude oil and natural gas in Indonesia's Arafura Sea. Six appraisal wells were drilled by 2008 (two in 2002 and four more in 2007–2008), and gas and condensate were successfully confirmed in all of the wells.
The Indonesian Government approved the plan of development in December 2010 for commencement of LNG production of 2.5 MMtpa.
FEED and an Environmental and Social Impact Assessment (AMDAL) are currently underway in the lead-up to development of the Abadi gas field.
Shell made the final investment decision on the Prelude project in May 2011, and is likely to be the world's first FLNG project. SDA [Shell Development Australia] is targeting its production start-up around 10 years from when the Prelude gas field was first discovered in early 2007.
