Eleven oil and gas projects to go on stream this year

Oct - 10

Eleven oil and gas projects to go on stream this year

The Jakarta Post – Tue, October 8 2019  

The Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) has said it expects as many as 11 oil and gas exploration projects to go on stream this year to further increase the country’s oil and gas production.

Three of the oil and gas projects went on stream by September and another eight projects were expected to begin production in the fourth quarter of this year, the oil and gas task force said.

The eight projects comprise five gas projects and three oil projects that are expected to produce, respectively, 470 million square cubic feet per day (mmscfd) and 10,500 barrels of oil per day (bopd), SKKMigas spokesman Wisnu Prabawa Taher has said.

Domestic and foreign investors have spent a total of US$800 million for the eight projects, which account for 11 percent of the total investment of $7.3 billion in the upstream oil and gas sectors as of August this year.

“In principle, our activities will go on. How much will we invest [next year]? We will wait until the third quarter is over. Many projects only finish in the fourth quarter,” Wisnu said in Jakarta on Sept. 29.

The projects include, among others, ExxonMobil’s exploration of the offshore Kedung Keris oil field in East Java and ConocoPhillips’s exploration of the Suban gas field in South Sumatra.

ExxonMobil’s project, which Wisnu said is 85 percent complete, holds the largest estimated oil production capacity among the eight projects: 3,800 bopd.

“The oil is expected to start flowing by the end of 2019. This oil will be channeled through a 16-kilometer pipe to the Banyu Urip facility for processing before being channeled to a floating storage and offloading facility,” ExxonMobil Indonesia’s public and government affairs vice president, Azi Alam, told The Jakarta Post in a text message.

The second and third largest oil projects are respectively those of Malaysia’s Petronas and of Petro China. The former company estimates it could produce 3,182 bopd from the offshore Bukit Tua field near East Java while the latter 2,000 bopd from the Panen field in South Sulawesi.

Meanwhile, the ConocoPhillips project, which Wisnu said was 99 percent complete, promises the largest estimated gas production at 100 mmscfd.

The second and third largest gas projects are respectively those of Britain’s Premier Oil and Indonesia’s Medco E&P. Premier estimates it could produce 80 mmscfd from the Bison, Iguana, Gajah Puteri field in the North Natuna Sea, while Medco plans to produce 45 mmscfd from the Buntal field at the same sea.

According to the latest SKKMigas data, Indonesia’s overall oil production reached 754,000 bopd and gas production reached 1.29 million barrels of oil equivalent per day (boepd) in August.

Oil production is slightly below this year’s target of 755,000 bopd but gas production is slightly higher than the targeted 1.25 million boepd, both of which were stipulated in the state budget.

For the government, increasing oil and gas production is necessary to cover Indonesia’s trade deficit, which was $1.81 billion in the January to August period, partly caused by oil imports, according to Statistics Indonesia. The deficit is lower than the $4.16 billion deficit booked in the same period last year.

“There are also about 40 oil and gas projects in progress that are scheduled for operation between 2019 and 2027. They are dynamic. So there may be changes in onstream dates,” said Wisnu.

source :  www.thejakartapost.com

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