Belanak FPSO Hull Construction Completed

ConocoPhillips Indonesia, as a Production Sharing Contractor to BPMIGAS- the government agency responsible for Indonesia's upstream oil and gas business - reports that construction of the 175,000-ton hull for the Belanak floating, production, storage and offloading (FPSO) vessel is complete.

ConocoPhillips contracted with PT Brown & Root Indonesia and Dresser Kellogg Energy Services (DKES), a subsidiary of Halliburton, to design, engineer, procure, construct and install the FPSO, including the moorings that will tether the ship to the ocean floor and the flexible risers that will take hydrocarbons to and from the vessel. Kellogg Brown and Root subcontracted construction of the hull, the module housing all the electrical systems for the hull, and living quarters to Dalian New Ship Heavy Industry Co. Ltd in Dalian, China.

Construction of the hull commenced in March 2002 and was completed in 18 months. To date, over 4.3 million hours have been worked on the project without a lost-time incident (LTI). The hull will be towed by two ocean-going tugs from Dalian, China, to Batam, Indonesia. The towing time is approximately three weeks.

Paul Warwick, president and general manager of ConocoPhillips Indonesia, stated, "This is the first time that either ConocoPhillips or Halliburton has built an FPSO hull in China. The Belanak hull is also the first ever FPSO hull of such size and complexity to be built in China. ConocoPhillips and DKES have worked as a team in relationship with Dalian new shipbuilding throughout the construction period. This relationship has proved successful with performance in line with the high standards of safety and quality that were set at the start of the project."

The Belanak FPSO hull has a storage capacity of one million barrels of oil and large deck space to accommodate more than 13 topsides modules. At 285 meters long, 58 meters wide, a depth of 26 meters and maximum displacement of 255,000 tons, it is one of the largest FPSO hulls ever constructed. Living quarters have been positioned at the aft of the vessel and can accommodate 120 personnel. The FPSO has been designed and built to remain in service for 30 years without the need for dry-docking, and all mechanical equipment has been specified to last for this period with only routine offshore maintenance.

On arrival in Batam, Indonesia, the hull will berth at a new quayside, built by PT McDermott Indonesia. Lifting of the 25,000 tons of process topsides modules onto the hull and hookup/commissioning activities will then begin. The completed FPSO will be towed to its installation site at the Belanak field in the South Natuna Sea, Indonesia, in preparation for first oil in the fourth quarter of 2004.

The Belanak FPSO, which will process gas, oil, and condensate produced from multiple fields in the eastern portion of the ConocoPhillips-operated South Natuna Sea Block B Production Sharing Contract (PSC) area, incorporates a plant to extract liquefied petroleum gas (propane and butane) from the gas. The Belanak field development project forms the cornerstone for the supply of South Natuna Sea Block B gas to Malaysia and Singapore, and the accelerated development of extensive liquid reserves, by BPMIGAS, ConocoPhillips as operator together with its co-venturers Inpex Natuna, Ltd. and Texaco South Natuna Sea Inc. Safety, environmental and process engineering considerations have placed this project at the leading edge of technology and expertise in the offshore oil and gas industry.

ConocoPhillips' affiliates in Indonesia, acting as BPMIGAS' Production Sharing Contractors, currently hold several contract areas throughout Indonesia from Sumatra to Irian Jaya.