South Korea’s Samsung Engineering has won a $680 million engineering, procurement, construction and project management contract to build an onshore gas plant for Shell’s Rosmari Marjoram development in Sarawak, Malaysia.
Samsung said yesterday that the project will be executed in two phases; a limited scope prior to Shell obtaining a final investment decision (FID) for the Rosmari Marjoram project; with all of the remaining scope to be executed after Shell approves FID.
The onshore gas plant will have the capacity to process up to 800 million cubic feet of gas per day. Samsung Engineering will execute the project on an EPCC (engineering, procurement, construction and commissioning) basis. The plant is expected to be ready for start-up in 2025.
Samsung said it was able to secure this contract after competing and successfully emerging as the successful bidder from the dual front-end engineering and design (FEED) work.
Shell (LON:SHEL) is preparing to give final approval for the development of its Rosmari-Marjoram sour gas fields.The company is pushing ahead with the Rosmari-Marjoram and Timi projects in Block SK 318 offshore Sarawak in East Malaysia. Timi is a sweet gas discovery. Combined peak production from both the Shell-operated field developments is estimated at 150,000 barrels of oil equivalent per day.
Shell operates Block SK 318 on behalf of partner Petronas.
Malaysia needs to unlock sour gas fields to help maintain LNG exports, as many of the country’s easiest-to-exploit sweet gas fields have already been commercialised.