Genting Bhd's 95%-owned indirect unit PT Layar Nusantara Gas (PTLNG) has signed a definitive agreement with China National Machinery Import and Export Corporation and Shandong Kerui Energy Development Co Ltd.

The agreement entails the design, engineering and procurement of the onshore gas processing plant, connecting pipelines and supporting facilities for the Genting floating liquefied natural gas (FLNG) project in West Papua, Indonesia.

In a filing with Bursa Malaysia on Oct 28, Genting said the fixed lump sum for the contract value is US$182.87 million (RM797.31 million), excluding a reimbursable amount of US$2.57 million.

On Oct 28, PTLNG also signed a separate contract with PT China Construction Yangtze River Indonesia for the construction, installation and commissioning of midstream infrastructure for a fixed value of 2.05 trillion rupiah (RM568.93 billion), with an additional reimbursable amount of 213.61 billion rupiah.

Genting noted that the midstream infrastructure is expected to be completed within 25 months and will be able to receive raw gas from the Asap, Merah and Kido structures within the Kasuri Block concession area in West Papua, Indonesia.

The Kasuri Block was awarded to Genting Oil Kasuri Pte Ltd (GOKPL), another 95% indirect unit of Genting, under a production-sharing contract signed in May 2008 with BP Migas, Indonesia's oil and gas regulator.

Genting stated that the upstream development under the Kasuri PSC by GOKPL is progressing well, with recent re-entry activities successfully spudding the Asap 4X well in August 2024 and the Asap 2X well in October 2024.

GOKPL has also procured several long lead items for the upstream development, with the pre-qualification review process for the early production facility contract and the engineering, procurement and construction contract now completed, it added.