East Java Gas Manufacturer, HCML becomes Backbone

The East Java region is now a producer of oil and gas. As much as 30 percent of the 800 thousand Barrel of Day (BOD) national production, is met from oil and gas field production from East Java. As for gas, it is also very important.

     East Java is able to support 10 to 12 percent of the total gas supply in the country. Currently, in the SKK Migas Java Bali Nusa Tenggara (Jabanusa) working area, there are 32 cooperation contractor companies (KKKS) operating. And, 16 KKKS companies that are already in production.

Blogger Agus Purnomo in SKK Migas

Head of Representative of the Jabanusa Region Oil and Gas SKK Migas, Ali Masyhar illustrates that oil and gas production is declining because oil and gas are not renewable resources. However, SKK Migas Jabanusa and KSS in Jabanusa continue to increase production, especially crude oil every day.

"Currently, the highest production is in Cepu Block and efforts are increasing, but to increase production, it takes several efforts and it also costs a lot, while for gas can not be directly exploited, because it has to wait for the buyer first," said Ali Masyhar.

CNOCOC Madura Limited (HCML)

Especially for gas production, East Java still holds great potentials from offshore fields managed by Kangean Energy, CNOCOC Madura Limited (HCML), and Petronas Husky.

"There are four fields owned Husky ready to produce. The potential is quite large. Going forward, Husky will be a backbone in the supply of natural gas for energy East Java, "said Head of Oil and Gas Commercial Division of SKK Migas, Waras Budi Santoso.

Blogger Agus Purnomo in Petronas Carigali Ketapang

The problem is, many factors often hamper exploration and exploitation activities until the gas reaches the buyer's hands. The inappropriateness of this production schedule, which makes KKKS already committed to producing oil and gas, can be harmed because potential customers divert their needs to other mineral sources. For example diesel and coal. 

    For example, the gas production of Husky CNOOC Madura Limited (HCML) has been producing gas in Sampang Madura waters since 2017. Until now, not all the gas can be bought by the market. According to information, about 30 MMcfd of HCML gas production has not been purchased market maximally.

"This problem should be sought to solve the problem," said Waras Budi Santoso.

Special HCML gas from the field in offshore Sumenep which is expected to start production in late 2019, highly anticipated PT Petrokimia Gresik is now preparing to develop the factory Ammonia Urea II.

Harian Bangsa, Page-4, Friday, May 11, 2018