(EnergyAsia, November 1 2011, Tuesday) — A consortium comprising Singapore’s Sembawang Shipyard and Indonesian shipowning company PT Scorpa Pranedya has secured a US$300 million contract from Mobil Cepu Ltd to convert a tanker into a floating storage offloading (FSO) facility to produce oil in Indonesia’s offshore Cepu block.

Mobil Cepu, an Exxon Mobil Corp subsidiary, is a contractor for the Indonesian oil and gas regulator, BPMIGAS. Exxon Mobil and state oil and gas firm Pertamina each hold a 45% stake in the block.

Sembcorp Marine said its subsidiary, Sembawang Shipyard, is responsible for the engineering, procurement, construction, commissioning and hook-up work of a very large crude carrier (VLCC)-sized floating storage and offloading vessel for the Banyu Urip project, which is slated to produce 165,000 b/d of crude by 2014.

Sembcorp Marine said the vessel is expected to be deployed in the offshore Tuban area for work on Banyu Urip which is projected to yield 450 million barrels of oil, all for domestic consumption. The engineering, procurement, and construction work is expected to be completed 27 months after contract award.

Ong Poh Kwee, Sembawang Shipyard’s managing director, said:

“We are committed to work closely with all partners involved in this milestone project for a successful outcome. We believe that with our expertise, we will be able to achieve the desired expectations, in order to help the government of Indonesia in fulfilling the national priority with respect to energy needs.”

Sembawang Shipyard has one of the largest integrated ship repair facilities in Southeast Asia.