2020 Upstream developments in Asia, key FIDs and project starts

GlobalData Energy 7 February 2020 (Last Updated September 22nd, 2020 08:48)

2020 Upstream developments in Asia, key FIDs and project starts

The year 2020 is expected to see nine projects reaching their FIDs, with four in Vietnam and one in China.

Sapura Energy is to dominate the FID awards with four projects in the shallow water Sarawak Basin in Malaysia to be sanctioned by the end of 2020. Out of 39 projects to start in 2020 in Asia, China is expected to have the highest number with 11 in total.

In Asia, some of the key project starts of 2020 include Neelam (redevelopment) and Cluster IIB, both in India, as well as the Block H gas development project in Malaysia. The development of the Cluster IIB project in India will unlock approximately 1.2 trillion cubic feet (tcf) of natural gas resources.

The Merakes project in Malaysia, sanctioned by ENI in 2018, is located in the deepwater East Sepinggan PSC, offshore East Kalimantan. It will be tied back to the neighbouring Jangkrik floating production unit and backfill the feed gas to Indonesia’s Bontang LNG. Merakes has an estimated 820 billion cubic feet (bcf) of recoverable natural gas with an economic lifetime of approximately nine years from 2H 2020.

The Larak project in Malaysia, together with Gorek and Bakong fields in the shallow water block SK408, are being developed as three separate wellhead platforms tied back into the existing processing facility. Gas is transported through pipelines for onward gas processing at Petronas MLNG complex in Bintulu.

Figure: Number of field starts by terrain (2010-2020). Credit: GlobalData.

As for FIDs, key projects that are targeting FIDs in 2020 in Asia include the Block B gas development project, Ca Voi Xanh in Vietnam and B14 in Malaysia. The first project is targeting FIDs in Q3 2020, while the other two targets FIDs in Q4 2020.

Recoverable gas reserves for the Block B gas development project are estimated at approximately 3.7tcf, with first gas expected by the end of 2023. It is expected to produce 490mmcfd at full production for about 20 years.

The B14 field has estimated reserves of approximately 2.2tcf and the development cost is estimated at $2 billion.

Ca Voi Xanh has estimated recoverable natural gas reserves of 5.2tcf. The proposed base development will meet approximately 10% of Vietnam’s current power demand. First gas is expected in late 2024.