Gas production from various fields in the Makassar Strait might be bigger than expected, raising hopes that gas from this area could soon substitute declining production rates at depleted gas fields in other parts of the country, including the aging Mahakam field in East Kalimantan.
Such hopes emerged following the start of production at the Jangkrik complex, comprising the Jangkrik field and the Jangkrik North East field, at the Muara Bakau block in late May.
The complex, operated by Italian energy firm Eni SpA, is expected to reach a peak production rate of 600 million standard cubic feet per day (mmscfd) by the end of the year, up from only 450 mmscfd in the first week of July. In addition to this, it also produces 1,500 to 2,000 barrels of condensate per day
“To reach the production rate of 600 mmscfd, Eni should add several more production platforms [at the complex],” Up-stream Oil and Gas Regulatory Special Task Force (SKK Migas) deputy for operation control Fatar Yani Abdurrahman told reporters recently
Moreover, Fatar said Eni planned to submit to SKK Migas a plan of development (POD) for the newly discovered Marakes field nearby the Jangkrik complex in September. The Marakes field is projected to start producing 150 mmscfd of gas by the end of 2018, or early 2019, by using the Jangkrik floating production unit (FPU) built by Eni at the Muara Bakau block.
"As the facility has a maximum capacity of 600 mmscfd, Eni might have to re-adjust gas production at its fields. For instance, if the Marakes field has started producing 150 mmscfd of gas, the production from the Jangkrik complex might only reach 450 mmscfd,” Fatar said.
He said Eni was also in discussion with Chevron Indonesia, the local branch of American oil and gas giant Chevron, to share some of its production facilities, including in electricity and water supply, to help support Chevron’s Indonesia Deepwater Development project at the Gendalo and Gehem fields in the Makassar Strait.
The Gendalo and Gehem fields, expected to have a combined production rate of 1,000 mmscfd, are slated ,to begin production around 2023.
“So, Chevron doesn’t need to invest a large amount of money to build the same facilities. That way there will be no duplication and the company can start producing faster than expected,” Energ and Mineral Resources Minister Ignasius Jonan said in a statement during a visit to the Jangkrik FPU in early June.
In total, gas production from the Jangkrik, Marakes, Gendalo and Gehem fields reached a peak of 1,750 mmscfd, or 23.3 percent of Indonesia’s entire production, as of June.
This comes as good news for PT Badak NGL, which operates a major liquefied natural gas plant in Bontang, East Kalimantan. The company is bounded by a 20-year agreement with Eni to supply gas to the Tanjung Benoa regasification terminal in Bali.
The company previously projected declining cargo output for the next few years due to insufficient supply from the depleted Mahakam field. Mahakam, the country’s biggest gas-producing field, yielded 1,504 mmscfd of gas in the first half of this year, down 14 percent compared to a production rate of 1,752 mmscfd recorded throughout 2016.
Jakarta Post, Page-13, Monday, July 10, 2017
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