TOKYO, Aug 6 (Reuters) - Japanese oil and gas explorer
Inpex Corp ( IPXHF ) said on Wednesday it has awarded additional
contracts for early-stage design work on its $20 billion Abadi
liquefied natural gas project in Indonesia's Masela block.
In April, the firm launched a front-end engineering design
(FEED) process to assess technical details and costs to build
the facilities needed to extract and process natural gas from
the Abadi gas field and convert it to LNG at an onshore plant.
Following its announcement of some initial awards on Monday,
Inpex ( IPXHF ) said that two contractor consortiums - one led by Japan's
JGC Holdings ( JGCCF ) and the other by U.S. engineering firm KBR
- have been selected to conduct FEED work for the
onshore LNG facility.
The two groups will work in parallel under a so-called "dual
FEED" framework to foster competition.
The consortium that provides the better technical and
commercial proposal will be awarded the subsequent Engineering,
Procurement and Construction (EPC) contract, Inpex ( IPXHF ) said.
The FEED scope also includes work related to carbon capture
and storage (CCS), it said.
The move signals progress toward a final investment decision
on the project, which is expected to produce at its peak 9.5
million metric tons of LNG a year.