Synergy Engineering secures $630 million contract
Indonesia’s Synergy Engineering has been awarded the front-end engineering and design (FEED) contract for Repsol’s significant Gas project. The $630 million Kali Berau Dalam (KBD) field development is part of the Sakakemang production sharing contract in South Sumatra, Indonesia. This project is a major milestone in Indonesia's Energy sector, emphasizing the importance of local expertise in global Energy developments.
Project scope and development plans
The project involves substantial infrastructure developments, including the construction of a central processing facility (CPF) around the KBD-2X well pad. Two new production wells will be drilled, enhancing the Gas production capacity. Additionally, a one-kilometre pipeline will connect the CPF to the existing TGI pipeline, and a 20-kilometre CO2 pipeline will link the CPF to Medco Energi’s Grissik central Gas plant. These developments are essential for handling the KBD field's high CO2 content of 26%, ensuring efficient Gas processing and transportation.
Timeline and investment details
Repsol and Indonesian authorities have approved the revised Plan of Development (POD), setting a clear timeline for the project. The FEED work is expected to be completed by the end of 2024, with first Gas production anticipated by early 2028. The total investment for this project is estimated at $631.7 million, covering both drilling and completion costs of $168.8 million and production facility costs of $462.9 million.
Significance for Indonesia’s Energy sector
This development is a significant boost for Indonesia's Gas production capabilities. The KBD field is projected to exploit Gas reserves of approximately 474.28 billion cubic feet until 2040. The project's successful implementation will enhance Indonesia's Energy security and contribute to the country's economic growth.
Commitment to sustainable Energy
Repsol's commitment to advancing Indonesia’s Energy sector is evident through this project. By leveraging local engineering expertise, the company aims to optimize the region's natural Gas resources. This collaboration between Repsol and Synergy Engineering highlights the potential for sustainable Energy developments in Southeast Asia, positioning Indonesia as a key player in the global Energy market.
Looking ahead
The FEED contract awarded to Synergy Engineering marks a pivotal moment for Indonesia's Gas industry. With a focus on enhancing production capabilities and sustainable development, this project promises significant benefits for the country's Energy landscape.
