SOUTH MAHAKAM FIELD DEVELOPMENT PROJECT PHASE 1 & 2

Overview Project:

South Mahakam is a gas condensate field located in East Kalimantan, Indonesia, approximately 70 kilometers South West of the Peciko Field and some 25 kilometers from the Balikpapan shore.

South Mahakam comprises the principal Stupa Field and adjacent surrounding smaller fields, namely, Jumelai, Jempang, East Mandu and West Stupa. The water depths in the Field range from 50 meters to 60 meters.

The Stupa Field was discovered in 1996 with the STUPA-1 well. Four delineation wells were drilled between 1997 and 1998, confirming the presence of gas bearing reservoirs on the NW termination of the structure(STP-2, STP5 and STP3) and East of STP-1 (STP-4).

The South Mahakam field is operated by COMPANY under a Production Sharing Contract. The field, along with others in the region, supplies gas to the Bontang LNG Plant and to Kaltim Industrial Estate (domestic consumers).

The objective of the South Mahakam Phases 1 and 2 (SMK 1&2) Project is to develop the Stupa, East Mandu and West Stupa fields. A total of 19 new wells will be drilled comprising 10 wells at Stupa, 6 wells at East Mandu and 3 wells at West Stupa.

This SMK1&2 Project will consist of the installation of three unmanned wellhead platforms, associated sea lines, a main gas trunk line including a double subsea Wye connection (connecting East Mandu sea line and providing a tie-in point for future pipeline) to the onshore processing facilities in Senipah, and modification works at the Senipah processing facilities.

At the initial stage of the development plan for phases 1 and 2 the COMPANY selected the concept of a six slots platform with dual-splitter wells having dedicated flow lines per well. No process will take place offshore and wet gas will be exported to Senipah for treatment. In addition, as part of its development plan the COMPANY have implemented a new platform design utilizing a tripod jacket rather than the conventional 4 leg jacket previously used by COMPANY.

Plant Description:

In brief the PLANT comprises:

One three-legged integrated Main Stupa Topside to be mated to its related pre-installed Jacket including at minimum:

• A fully equipped production Topside including 12 well flowlines, production and test manifold, utilities, walkways, stairs, access platforms, removable crane,
• One (1) 24” Pig launcher for the outgoing pipeline and other appurtenances,
• One (1) 12” Pig receiver for pipeline from West Stupa and other appurtenances,
• One vent boom,
• A telecom mast
• Provision in layout/space for future Pig Receivers (14” and 10”)
• A Telecommunication, Control and Safety System to be integrated

One three-legged integrated East Mandu Topside to be mated to its related preinstalled Jacket including at minimum:

• A fully equipped production Topside including 11 well flowlines, production and test manifold, utilities, walkways, stairs, access platforms, removable crane,
• One (1) 24” Pig launcher for the outgoing pipeline and other appurtenances,
• One vent boom,
• A Telecommunication, Control and Safety System to be integrated

One three-legged integrated West Stupa Topside to be mated to its related preinstalled Jacket including at minimum:

• A fully equipped production Topside including 3 well flowlines, production and test manifold, utilities, walkways, stairs, access platforms, removable crane,
• One (1) 12” Pig launcher for the outgoing pipeline and other appurtenances,
• One vent boom,
• A telecom mast
• A Telecommunication, Control and Safety System to be integrated

Onshore Works:

Modifications to existing facilities at Senipah, including at the minimum:

• Telemetry, Control and Safety systems modifications at Senipah.
• Installation of by-pass line at Senipah, including construction and installation of piping support, connection to existing vent header.

Site preparation for onshore pipeline section in Senipah.

Installation of GOV and 24” onshore pipeline up to existing ESDV 2110 K including site clearing, removal of existing vegetation, removal of fencing and reinstatement.

Design and construct road crossings for 24” onshore pipeline.

Onshore Cathodic Protection System design and installation for 24” onshore pipeline.

Construction of temporary base camp

Removal of existing sheet piles along the shoreline and replacement with the new ones.

Installation of SDS.

Offshore Pipelines:

In brief the PLANT consists of:

• 24” main gas trunk line approximately 70km in length from the Main Stupa Platform to the onshore GOV at Senipah.
• 24” gas sea line approximately 10 km in length from the East Mandu Platform to a sub sea Wye connection in the 24” gas trunk line from Main Stupa Platform to Senipah.
• 12” gas sea line approximately 4 km in length from the West Stupa Platform to the Main Stupa Platform.
• All Expansion Loops between sealines and pre-installed risers and related tie-ins.

Client (COMPANY): Total E&P Indonesie (TEPI)

CONTRACTOR: PT. Nippon Steel & Sumikin Construction Indonesia (PT. NISCONI)

Duration of Contract: 23/08/2010 – 01/05/2012.

Scope of Work:

The overall WORK scope for this CONTRACT is engineering, procurement, supply, prefabrication, construction, load out, transportation, installation of platforms, pipeline laying, hook up, pre-commissioning and commissioning assistance as well as TCSS complete engineering, construction, FAT, IFAT ,installation, Pre-commissioning, SAT (Site Acceptance Test) and commissioning assistance for TCSS.

Related Links:

• SISI NUBI FIELDS DEVELOPMENT PROJECT – PHASE 1
• PECIKO FIELD DEVELOPMENT PROJECT – PHASE 5
• SOUTH MAHAKAM FIELD DEVELOPMENT PROJECT PHASE 1 &2

Read More:

• Chairman of SKK Migas inaugurates South Mahakam Project