Jakarta (Platts)--22Feb2013/522 am EST/1022 GMT
Indonesia's state-owned oil and gas company Pertamina and its partners will spend a total $3.3 billion to develop gas reserves at Cepu, with first gas production expected by 2017 and condensate by 2019, an official at the country's upstream regulator SKK Migas said Friday. "SKK Migas has approved the development plan last week. Under the plan, they will spend (a total) $3.3 billion, including $1.9 billion for operational expenditure and another $1.4 [billion] for capital expenditure. But the figure could be changed depending on [the] final investment decision," SKK Migas' spokesman Elan Biantoro told Platts. The FID is expected to be made over 2015-2016 while engineering, procurement and construction works are expected to start at the end of this year, he said. Gas production from the Cepu gas project is expected to come onstream by 2017 with an output of 185,000 Mcf/d and condensate output of 3,000 b/d by 2019. Article continues below...Sign up to International Gas Report today. International Gas Report is a biweekly report that intelligently analyzes what is happening in the natural gas industry, improving your vision and sharpening your competitive edge. Through its unrivalled network of global correspondents, it covers the whole gas chain, from the well-head to the burner tip, in Asia, Europe, the Middle East, Africa and the Americas, including gas transport, regulation and the ever-present problems posed by shifting geopolitical concerns.
Indonesia's state-owned oil and gas company Pertamina and its partners will spend a total $3.3 billion to develop gas reserves at Cepu, with first gas production expected by 2017 and condensate by 2019, an official at the country's upstream regulator SKK Migas said Friday. "SKK Migas has approved the development plan last week. Under the plan, they will spend (a total) $3.3 billion, including $1.9 billion for operational expenditure and another $1.4 [billion] for capital expenditure. But the figure could be changed depending on [the] final investment decision," SKK Migas' spokesman Elan Biantoro told Platts. The FID is expected to be made over 2015-2016 while engineering, procurement and construction works are expected to start at the end of this year, he said. Gas production from the Cepu gas project is expected to come onstream by 2017 with an output of 185,000 Mcf/d and condensate output of 3,000 b/d by 2019.
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International Gas Report is a biweekly report that intelligently analyzes what is happening in the natural gas industry, improving your vision and sharpening your competitive edge. Through its unrivalled network of global correspondents, it covers the whole gas chain, from the well-head to the burner tip, in Asia, Europe, the Middle East, Africa and the Americas, including gas transport, regulation and the ever-present problems posed by shifting geopolitical concerns.
Pertamina and ExxonMobil Oil Indonesia had signed a heads of agreement in August 2011 on the Cepu gas project involving the development of Jambaran and Tiung Biru fields. The HOA includes a deal to develop the Jambaran and Tiung Biru fields together because they are in the same structure, although they have different operators. The parties have agreed to appoint Pertamina as the operator on the block gas development, Platts reported previously. The Jambaran field is part of Cepu block where Pertamina and ExxonMobil hold 45% each and local governments the remaining 10%, with ExxonMobil as operator. Tiung Biru is outside the Cepu block and is 100% owned by Pertamina EP. Both fields contain a total 1.2 TCF of recoverable gas reserves and 18.6 million barrels of condensate reserves, Biantoro said. Production lifespan is from 2017-2035. The gas reserves figure given is higher compared with Pertamina's previous estimate of 1.1 Tcf. Pertamina had previously not announced any estimates for condensates reserves. The Cepu block, straddling the border between Central Java and East Java, is estimated to contain about 600 million barrels of oil. Banyu Urip, the block's major oil discovery, is estimated to hold more than 250 million barrels of oil. Jambaran is the block's gas field. --Anita Nugraha, newsdesk@platts.com--Edited by Irene Tang, irene_tang@platts.com
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