Nippon Steel Engineering Accepts South Mahakam Natural Gas Development

Nippon Steel Engineering announced on Thursday the firm received a turnkey order for a natural gas development project in Indonesia conducted by Total E&P Indonesia. The firm concluded a turnkey contract to design, procure, construct and test a long reach pipeline and 3 offshore well head platforms to output natural gas from South Mahakam gas condensate development area. The order value exceeds 20 billion yen.

Nippon Steel Construction Indonesia (NISCONI), a subsidiary of Nippon Steel Engineering, conducts total management of the project. Nippon Steel Batam Offshore Service, another subsidiary of Nippon Steel Engineering, fabricates the platforms in Indonesia and lays the platforms by a marine vehicle “Kuroshio” as well as laying the pipeline. The construction will complete in June 2012.

Total steel weight is about 9,000 tonnes for 3 platforms, 4,200 tonnes of which are platforms and 4,800 tonnes are piles. Entire length of the pipeline is about 84 kilometers with 24 inch diameter.

Total E&P Indonesia and an operator, INPEX invest each 50% for the area development. Natural gas produced in Mahakam area will be supplied to Indonesia, Japan, South Korea and Taiwan.