The Memorandum of Understanding defining the main principles of the Yadana
project was signed in July 1992. Gas production began on schedule in July 1998,
and commercial production followed in 2000. The period of six to eight years
that elapsed between the initial commitment and full production illustrates the
length and complexity of the process of developing oil and gas fields.
In 1992 and 1993, the project focused on determining whether the field, which
had not been fully appraised, contained sufficient gas reserves to warrant the
US$1-billion investment required to bring it on stream and transport
the gas.
Complex geophysical surveys had to be conducted and appraisal wells
drilled. At end-1993, sizeable reserves were confirmed and the technical
processes for
bringing the field on stream were defined in greater detail.
The other indispensable requirement before proceeding was finding
a profitable, long-term market for the gas. Unlike oil, which is easy
to
transport, and a few rare giant gas fields that are big enough to warrant
the construction of a multi-billion-dollar liquefaction plant that
offers greater flexibility for finding long-term custormers, natural
gas is sold in the pipe. The negotiations with the logical purchaser
of
Yadana
gas,
Thailand's PTT, took place from February 1993 to February 1995.
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Laying the pipeline on uneven terrain |
During the exploration and commercial negotiation period, Total's specialized
departments prepared the technical development plan to serve as a basis for
talks with equipment suppliers and other subcontractors.
February 1995 was the real starting point for operations. The offshore
partners and shareholders of MGTC agreed on the Yadana field development
plan, the gas sales and purchase contract with PTT was signed, and
a final decision was made on the onshore pipeline route. Construction
work could begin.
Nature had a large say in the work. Eight meters of water fall in the region
during the annual monsoon season between May and September, making work
impossible. Construction was therefore divided into three phases, each running
from October to May.
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Detailed field surveys began in late 1994 and continued into 1995. |
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The project infrastructure was built during the first season, from October
1995 to May 1996. It included wharf facilities in the Heinze Chaung River
estuary so that equipment could be shipped in from Singapore, an airfield,
landing pads for helicopters, roads, bridges and temporary buildings to house
the teams and manage the site. |
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The 63 kilometers of onshore pipeline to the Thai border were laid between
October 1996 and May 1997. |
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The project was completed between October 1997 and May 1998 with the
construction of the two operating management centers for the structure, the
pipeline center near Kanbauk and a metering station for the gas delivered to the
border at Ban I Tong. A service road was built so that the pipeline could be
maintained, and the vegetation was restored so that there was no lasting
impression on the environment. |
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The offshore facilities were built at the same time. This comprised
installation of the platforms, built in Singapore, and the laying of 346
kilometers of subsea pipeline. The project was completed on schedule on July 1,
1998. Commercial commissioning took place in early 2000, since the economic
turmoil in Asia had delayed the construction of the Thai power plants to be
fuelled by the gas. |
