Subsea Contract Worth $40 Million Awarded To Dril-Quip 

Published at 04:54PM - 12/07/16

Drip-Quip announced today that its wholly owned subsidiary Dril-Quip Asia Pacific was awarded a contract to supply subsea drilling and production equipment and related services offshore Indonesia.

The contract, valued at approximately US$40 million (£30.34 million), includes the provision of services to Kangean Energy Indonesia, a contractor for SKK Migas, for the development of its Terang/Sirasun/Batur gas fields project.

“Dril-Quip will provide subsea wellhead systems, subsea tree systems, subsea control systems and other equipment for the project,” the company informed in a statement.

Subsea Contract Worth $40 Million Awarded To Drip-Quip 

Dril-Quip is a leading manufacturer of highly engineered offshore drilling and production equipment for use in deep water, harsh environment and severe service applications.

Indonesia hosts the seventh-biggest offshore gas project under development, the East Natuna gas field.

With estimated gas reserves of 46 trillion cubic feet, the field is located in the Greater Sarawak Basin in the South China Sea, approximately 1,100 kilometres (683.5 miles) north of Indonesia’s capital Jakarta.

Pertamina formed a JV with ExxonMobil in 1980 to develop the field, but could not continue due to high CO2 content in the gas.

The project was resumed in December 2010 when the companies signed an agreement to jointly develop the field.

Total and PTT Exploration and Production later joined the consortium and the field is now expected to start production in 2020.

China Loses South Sea Acreage

Meanwhile, Indonesia could suffer from the turmoil in the South China Sea, after China lost an international legal case over reefs and atolls it claims would give it control over disputed waters of the South China Sea.

The judgement by an international court in The Hague was largely in favour of claims by the Philippines and will deprive China of a strategic region, stating these areas are neutral international waters or the exclusive economic zones of other countries.

China reacted to the decision, claiming the ruling is “ill-founded” and that the government will not “acknowledge it nor accept it”.