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PAL expects more oil, gas industry projects

State shipbuilder PT PAL is hoping to reap more orders from oil and gas firms after constructing an offshore topside platform for gas for China National Offshore Oil Corp

Wahyoe Boedhiwardhana (The Jakarta Post)
SURABAYA, EAST JAVA
Wed, March 19, 2014

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PAL expects more oil, gas industry projects

S

tate shipbuilder PT PAL is hoping to reap more orders from oil and gas firms after constructing
an offshore topside platform for gas for China National Offshore Oil Corp. Southeast Sumatra (CNOOC SES).

The US$42 million project was PAL'€™s second largest after a gas compressor project in Bukit Tua in Gresik, East Java, and was its seventh project related to the oil and gas industry.

PAL production director Edi Widiarto on Monday said that it took 14 months to build the offshore platform, which had a capacity of 2,200 tons.

He also said that the construction of the platform, which would support gas exploration activities in waters to the southeast of Sumatra, was carried out solely by PAL'€™s experts, using 40 percent locally sourced raw materials.

'€œThe gas will be used to generate electricity to supply Jakarta,'€ he said.

'€œWe hope that we will receive many orders for similar projects in the future.'€

Edi added that the company would also start working on something similar next month for Husky Oil Ltd.

PAL had previously carried out offshore oil and gas-related projects for Ujung Pangkah Project Development, KODECO Energy, Ameralda Hess, SANTOS (Madura Offshore), as well as for a gas power plant in Grati, East Java, and well-head platforms (WHP) at the Oyong and Wortel fields offshore Madura Island, East Java.

Edi said such offshore platform projects were expected to help boost natural gas production from offshore sites.

According to Central Statistics Agency (BPS) data, the country'€™s gas exports in January increased by 6.6 percent to $1.7 billion, from $1.6 billion in January a year before.

Since 2012, PAL has shifted its company policy by prioritizing general engineering.

In addition to general engineering, the company'€™s portfolio also include war- and commercial-ships.

Regarding warship building, PAL is currently working on the construction of three 60-meter Fast Missile Craft and two 105-meter Guided Missile Destroyer Escorts.

Meanwhile, PAL is also cooperating with Damen Schelde Naval Shipbuilding (DSNS) of the Netherlands in a $220 million project to construct Guided Missile Destroyer Escorts.

PAL is also currently preparing supporting facilities to build submarines in cooperation with South Korean Daewoo Shipbuilding and Marine Engineering (DSME) under a transfer of technology scheme.

The company has sent 206 experts to South Korea to study submarine manufacturing technology.

'€œWe are investing $150 million to build the facilities this year, and we will start the construction of the submarines next year,'€ said Edi.

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