Singapore-based shipbuilding player PaxOcean has completed the repurposing of a tanker into a floating production, storage, and offloading (FPSO) vessel, which is expected to assist in increasing oil and gas production off the coast of Indonesia.
While confirming the delivery of what it describes as Indonesia’s first FPSO conversion to SKK Migas, Medco E&P Natuna (Medco E&P), and Hanochem Tiaka Samudera, PaxOcean underscores that the achievement is perceived as a landmark one, underlining its role as “a pioneering force in the region’s maritime and offshore industry, and signals a significant leap in Indonesia’s offshore capabilities.”
The conversion of the FPSO vessel – named Marlin Natuna – from a tanker, executed at the Singapore shipbuilder’s Batam shipyard, is seen by the firm as “a bold step forward” in supporting Indonesia’s growing energy demands. The company justifies its view by explaining that the newly converted FPSO will play a pivotal role in enhancing Indonesia’s offshore production and storage capacities.
As a result, the delivery of this offshore asset is perceived to strengthen Indonesia’s maritime infrastructure, representing a significant leap in the country’s ability to efficiently process, store, and offload hydrocarbons from its offshore fields, optimizing production and bolstering energy security for the nation.
Tan Thai Yong , Chief Executive Officer of PaxOcean, commented: “The delivering of Indonesia’s 1st FPSO conversion is a proud moment for us at PaxOcean. This achievement reflects the skill, dedication and innovation demonstrated by our team in Batam. We are honoured to have partnered with SKK Migas, Medco E&P and Hanochem Tiaka Samudera on this pivotal project and we look forward to supporting future advancements in the Indonesia’s offshore energy sector.”
With an overall length of 183.23 meters, the FPSO Marlin Natuna has a production capacity of 10,000 barrels of oil per day (bopd) and tank capacity of 250,000 barrels, which will be used to accommodate the natural gas and oil of the Forel project produced from Natuna , Riau Islands. The FPSO Marlin Natuna is anticipated to raise domestic oil production by around 10,000 bopd.
Currently, multiple projects are underway in Indonesia, including the Forel and West Belut projects in the Riau Islands, which are slated to come online with production capacities of 10,000 barrels of oil per day and 50 million standard cubic feet per day (mmscfd). The operator of these assets in the prolific South Natuna Sea Block B , Medco Energi, has set its 2024 oil and gas production target at 145,000 barrels of oil equivalents per day (mboepd).
Jerome Chew , Chief Operating Officer of PaxOcean Group, remarked: “This project exemplifies our dedication to empowering Indonesia’s offshore industry. Our Batam yard has proven its ability to undertake and successfully execute complex projects that align with Indonesia’s long-term energy goals.”
In March 2024, PaxOcean also delivered a new class of compact semi-submersible (CSS), said to be designed and equipped to meet current and anticipated demands of the offshore industry, destined to work off the coast of Brunei for Brunei Shell Petroleum (BSP), a subsidiary of Shell.