Coastal Contracts’ Perdiz, Papan processing at max capacity

KUCHING (Sept 18): Coastal Contracts Bhd’s (Coastal Contracts) Papan and Perdiz Plant are currently reaching its maximum processing capacity, which analysts with TA Securities Bhd (TA Research) laud.

Recap that Coastal Contracts was planning to increase their gas processing volume as Pemex plans to expand Papan Plan’s capacity followed by modification of Perdiz Plant to include LPG recovery capabilities.

The expansion plan is expected to be finalised by early next year.

“The gas processing volume at both Perdiz and Papan Plant continue to ramp up as planned and have currently reached their maximum processing capacity,” TA Research said in its analysis yesterday

“Papan Plant is currently processing at its maximum processing capacity of 345mmscfd.

“Meanwhile, Perdiz Plant痴 daily average is also processing at its maximum processing capacity of 185mmscfd.”

On its Teras Conquest 7 (TC7) workboat, TA Research initially expected TC7 to undergo its Special Periodic Survey (SPS) this year, though no specific timeframe was provided.

Based on the latest insights from the analyst briefing, the SPS duration was confirmed to be 2.37 months, slightly above the research house’s earlier estimate of two months.

“As a result, we have revised lower our utilisation rate forecast for TC7 to 80 per cent from 83 per cent for FY24,” it said.

“Recall that Coastal’s jack-up gas compression service unit (JUGCSU) remains suspended while discussions on a contract extension are ongoing.

“Other options for the JUGCSU is to convert it into a mobile offshore production unit (MOPU) with a production capacity of approximately 40,000 barrels per day, operating at the current field for five years; or to continue operating as a JUGCSU at a different field for 5-10 years, which would require modifications due to the water being 20 feet deeper.

“We understand that Pemex aims to finalise discussions with the JUGCSU’s charterer by year-end, and Pemex appears to favour the first option.

“We view these developments positively, as they indicate a strong likelihood of a contract extension.”