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PAL focusing on oil, gas projects
State-owned shipbuilder PT PAL Indonesia expects the construction of vessels and non-vessels for the oil and gas sector to become its main profit source, with orders nearly quadrupling in the past year
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tate-owned shipbuilder PT PAL Indonesia expects the construction of vessels and non-vessels for the oil and gas sector to become its main profit source, with orders nearly quadrupling in the past year.
The company is currently working on a giant order worth US$126 million from oil and gas firm Husky-CNOOC Madura Ltd. (HCML).
'This is the largest non-vessel project that PT PAL Indonesia has ever handled,' PAL Indonesia production director Edy Widarto told The Jakarta Post on Friday.
'We will continue developing this division in the future because we can see that the procurement of offshore platforms is still widely needed in Indonesia and is very promising.'
Edy said work on the topside and jacket of the well-head platform ordered by HCML had been ongoing since July last year.
The shipbuilder expects to be able to send the platform to an offshore drilling site in the Madura Strait in March next year.
This 1,600-ton platform, which will be installed 55 meters above sea level, is PAL Indonesia's eighth engineering, procurement and installation offshore platform project.
HCML vice president Budiyanto Thomas said he expected that his company would be able to start operating the platform in early 2016, when it would produce 110 million standard cubic feet (mmscf) of natural gas per day.
The gas will be delivered via a 52-kilometer undersea pipe. 'The gas will be used to supply the Grati gas-powered plant in Pasuruan regency [East Java],' said Budiyanto.
Edy said non-vessel projects in the oil and gas sector generally involved substantial sums, but were completed in a relatively short period of time, compared to warships for example, which the company also builds.
'Of course, the value of warship projects is big, but the market is limited and they take a long time to complete ' to order and install weapons systems and the vessels' engines,' he said.
PAL Indonesia carried out non-vessel projects worth $32.8 million in the oil and gas sector between 2012 and 2013, including offshore platforms for Australia-based Santos Ltd., Malaysia-headquartered Petronas and China National Offshore Oil Corporation-Southeast Sumatra Ltd. (CNOOC SES).
The 2012-2013 figure has surged by almost 300 percent to $126 million in the 2013-2014 period with the HCML project alone.
For future projects, PAL Indonesia is eyeing tenders to procure well-head platforms for Canada-based oil and gas firm Husky and Santos.
Meanwhile, the company is finishing construction of two 17,500-long-ton-dead-weight (LTDW) tankers ' the MT Pagerungan and MT Pangkalan Brandan ' ordered by state oil and gas firm PT Pertamina. This project is worth $49.3 million.
PAL Indonesia is also working on the construction of two strategic sealift vessels for the Philippines' Navy, as well as three 60-m Fast Missile Craft and two 105-m Guided Missile Destroyer Escorts for the Indonesian Navy.
