Petra Energy Wins HUC Deal for World's Largest Offshore CCS Project

Petra Energy's Petra Resources subsidiary has been awarded a subcontract from Malaysia Marine and Heavy Engineering Sdn. Bhd. (“MMHE”) for Hook Up and Commissioning (HUC) Works for Kasawari Carbon Capture and Storage Project.

In November 2022,  PETRONAS Carigali announced the Final Investment Decision (FID) for the development of the Kasawari CO₂ Sequestration (CCS) project offshore Sarawak.

The CCS project, located in Block SK316 about 200 kilometers off Bintulu, is expected to reduce carbon dioxide volume emitted via flaring by 3.3 MtCO₂e annually, making it the largest offshore CCS project in the world.

Following the FID, the Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) contract for the project was awarded to MMHE.

For its HUC project part, Petra Energy said that the contract runs from March 2023 until December 2025. 

"Being given the opportunity to undertake work for one of the largest offshore CCS projects in the world is a meaningful achievement for [Petra Energy]. The Board and Management of [Petra Energy ] appreciate the support from MMHE and the confidence that it has placed in [Petra Energy']," Petra said. 

The full contract awarded to MMHE contract includes the construction of a 14,000-metric tonne (MT) topside, a 15,000-MT 8-legged jacket of Kasawari CCS platform and a bridge linking to the Kasawari Central Processing Platform (CPP). Upon completion, the platform will be installed in a water depth of 108 metres (m) within SK316 area, approximately 200 kilometres (km) offshore from PETRONAS LNG Complex in Bintulu, Sarawak.
Once completed, the Kasawari CCS project will be the largest offshore CCS project in the

A total of about 71 to 76 million tonnes of CO2 from the Kasawari CCS project will be reinjected into the M1 field via pipeline, which is  located about 138 km away from the platform. 

Additionally, MMHE said the facility would also be the world’s largest offshore platform fabricated to capture and store carbon. The Kasawari CCS project, the first-ever CCS project in Malaysia, is scheduled to start up by the end of 2025 and will be part of the overall Kasawari Gas Development Project.