The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that the development of the Sakakemang Block can be accelerated so that it can start production (onstream) in 2023. This target is faster than the Repsol proposal in 2024.
SKK Migas Deputy Operations Julius Wiratno said Repsol as the operator of the Sakakemang Block, had completed the Front End Engineering Design/FEED. In its proposal, Repsol proposed the block to start operating in 2024. However, it sees an opportunity to accelerate the development of this block.
"We see that there are several opportunities that can be accelerated so that they can be onstream in 2023," he said.
One of them is that Repsol projected auction duration will take 9 months. After his party carried out an evaluation, it turned out that the auction period could be shortened, as well as the project execution period. In addition, optimization can also be done by procuring long lid items earlier.
Currently, Repsol is working on an engineering, procurement, and construction package / EPC for the Sakakemang Block. So far, Repsol is still working on this oil and gas block according to the approved Plan Of Development/POD plan.
"They indicated a bit of a retreat, but we seized the opportunity to be brought forward again. It is currently under intense discussion and being monitored," he added.
Separately, in the earnings call for Q1 2021, Repsol SA CEO and Executive Director Josu Jon Imaz San Miguel said that the POD approval allowed his party to start the monetization stage of the Sakakemang Block. His party targets the Final Investment Decision / FID for this project to be carried out at the end of 2021 or early 2022.
"With first gas two years later," he said.
If the FID is completed by the end of this year, the Sakakemang Block can enter the production stage in 2023. However, if the FID is delayed until next year, the project operation could shift to 2024. Imaz added that his party also plans to work on a CO2 injection project in the Sakakemang Block. However, the plan is still under negotiation with the government.
“We are negotiating the terms of this injection plan. If it is agreed, we will be able to launch the project,” he said.
Sakakemang Block Repsol
The first POD of the Kaliberau Field, Sakakemang Block was approved by the government on December 29, 2020. According to this POD, gas reserves produced amounted to 445.10 billion cubic feet (gross) until the project's economic deadline in 2038 or equivalent to gas sales of 287.7 billion feet. cubic feet with a peak production rate of 85 million standard cubic feet per day/MMScfd.
Meanwhile, the cumulative condensate production is 0.17 million barrels with a peak production rate of 34 barrels per day (BPD). Furthermore, the investment cost for the development of the field is estimated at US$ 359 million.
This project includes the re-entry of the KBD-2XST1 well into a production well, drilling and completion of 1 infill well as a production well, construction of a Wellpad facility, as well as the construction of a number of production support facilities such as a flowline from the Wellpad to the existing Grissik Central Gas Plant (GCGP) in the Corridor Block. , through part of Right of Way (ROW) in Jambi Merang Block and modification of existing equipment and installation of new equipment at GCGP.
Repsol SA discovered gas reserves in the Sakakemang Block, South Sumatra with an estimated reserve of at least 2 trillion cubic feet through drilling the KBD-2X Well in early 2019. In the Sakakemang Block, Repsol has a 45% Participating interest/PI as well as an oil block operator. Meanwhile, its partner, Petronas, has a 45% participating interest and 10% MOECO.
Investor Daily, Page-10, Wednesday, July 21, 2021
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