Hilong bags Indonesian service contract

23 June 2016, Week 24 Issue 598

Hilong Petroleum Offshore Engineering has won its first offshore services contract outside Chinese waters, sealing a deal to install jackets at a gas development in Indonesia.

Timas Suplindo awarded the contract – which will see Hilong use the Hilong 106 pipe-laying derrick barge at the HCML Madura MDA-MBH project – earlier this month, Shanghai-headquartered parent Hilong Group said on June 17. The group added that the deal was very significant, as it laid a “firm foundation” for further development of its offshore engineering services arm, in addition to being the subsidiary’s first offshore lifting operation contract.

Most of the work will involve lifting and upending jackets underwater in the Madura Strait, off Java, with an expected start date of mid-November and completion anticipated by the end of February 2017, the statement said.

Hilong Group’s vice president and Hilong general manager, Xiao Long, attributed the award of the contract to the service provider’s “innovative transportation and installation technology”, as well as the “inclusive construction solutions” offered by Hilong 106.

Madura MDA and MBH are two of seven shallow-water gas and condensate fields with significant exploration potential within the East Java Basin, covering a total area of 2,805 square km.

The development project is a joint venture between field operator CNOOC Ltd and Canada’s Husky Energy, each with 40%, and Indonesia’s Samudra Energy with the remaining 20%.

In April, Husky said that when the project was fully ramped up in 2018-19 it would provide combined net sales volumes from the BD, MDA-MBH and MDK fields of approximately 100 million cubic feet (2.83 million cubic metres) per day of gas and 2,400 barrels per day of associated liquids.

Edited by

Andrew Kemp


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