Herbert Smith has recently advised Kangean Energy Indonesia (“KEI”) on its US$875 million 10-year charter contract (with additional options of up to four years) with BW Offshore for a floating production unit (“FPU”) to operate on the Terang Sirasun Batur gas fields in Indonesia. First gas is planned for early 2012. The FPU will be used to process gas for delivery to the domestic Indonesian market via the East Java Gas Pipeline.
KEI is a leading Indonesian oil and gas production company in the East Java gas market. The shareholders of KEI are PT Energi Mega Persada, Mitsubishi Corporation (Japan’s largest trading company) and Japan Petroleum Exploration Co. Ltd. (a leading Japanese oil and gas company).
BW Offshore is one of the world’s leading FPSO contractors and has more than 25 years’ experience in the market. The company has a global network with offices in Europe, Asia Pacific, West Africa and the Americas. BW Offshore is listed on the Oslo Stock Exchange.
The Herbert Smith energy team was led by head of Asia energy practice Anna Howell and senior associate Hilary Lau, supported by Ping-kit Loh and Stacey Pang. The Herbert Smith team worked alongside our Indonesian legal team at associated firm Hiswara Bunjamin & Tandjung (“HBT”) where Herbert Smith partner Brian Scott and HBT partner Mira Fadhya led the team assisted by Charles Ball, Alison Battisson and Ninditya Prijono. The team was also supported by Hong Kong finance partner Alexander Aitken and senior associate Kanyi Lui.
Anna Howell commented:
“We are delighted to be able to assist KEI in this significant FPU project. The breadth and depth of our Asian energy team and its recent experience combined with the presence of the team on the ground in Jakarta, which is approaching its 10th anniversary, was crucial for completing this important project under a very challenging timeline.”
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