Malaysia’s Bumi Armada is joining forces with a unit of Indonesia’s state-owned energy firm Pertamina and natural gas trader Davenergy Mulia Perkasa to develop a floating LNG production project based on the resources from the Madura gas field and its surrounding fields.
In that regard, Bumi Armada, Pertamina International Shipping, and Davenergy have signed a non-binding agreement on Wednesday to develop and commercialize liquefied natural gas (LNG) from Indonesia’s Madura field, according to a statement by the Malaysian oilfield services provider.
Under the deal, Bumi Armada and Pertamina’s unit will design, engineer, construct, install,
commission, hook up, and operate a floating natural gas liquefaction and storage facility, together with an LNG carrier to transport LNG to consumers who are not close to “clean energy” sources, it said.
Bumi Armada said that the partners have launched preliminary discussions with “several” potential offtakers.
The first shipment of LNG is anticipated to take place three years after making final investment decision, it said.
Bumi Armada did not provide any additional information.
Husky-CNOOC, which charters the Karapan Armada Sterling III FPSO from Bumi Armada, operates the Madura Strait PSC in East Java basin, one of the most prolific areas in Indonesia.
Last year, the JV launched production from the MDA gas field, the largest gas field of the 3M project in Indonesia.
On the other hand, Pertamina operates the Bontang LNG terminal in Indonesia and it recently also purchased a 20 percent stake from Shell in Indonesia’s Masela PSC, which includes the planned Abadi LNG project.
