The Indonesian oil and gas authority has rolled out the red carpet for plans submitted by the ENI-Italy company, after discovering natural gas reserves of 5 trillion cubic feet in the North Ganal Block, East Kalimantan-Indonesia.
The Ministry of Energy and Mineral Resources (ESDM) has confirmed that it will provide full support for the plan proposed by ENI to develop natural gas reserves in North Ganal, including part of the Indonesian Deepwater Development area so that it can be developed simultaneously.
Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that the merger of some of the Indonesian Deepwater Development (IDD) working areas would have a positive impact on Indonesia's upstream oil and gas development. The reason is, that the potential that exists in the area can be directly utilized by the facilities that are available.
Tutuka Ariadji said we really support dividing the two IDD areas because it is good, and will reduce costs. Some can be used by existing facilities.
ENI is planning to submit a revised Plan of Development IDD by dividing the development of the oil and gas block into two concentrations, namely the north side and the south side.
The plan is for the southern part of the IDD to be connected to the floating production unit (FPU) of the Jangkrik Gas Field, while the northern part, which is close to the current large gas discovery location, will be connected to the North Ganal development block.
The Ministry of Energy and Mineral Resources is currently waiting for the revised PoD so that it can be followed up immediately. The government is also committed to facilitating the acceleration of PoD approval for the block so that the timeframe for exploitation preparation can be shortened.
Tutuka also explained that the exploration well drilled by ENI contained a very large amount of condensate to support Indonesia's oil production in the future.
"The Jangkrik Gas Field FPU is for the South side, it looks like it will build a new hub. So, there will be new facilities, because the Jangkrik Gas Field is already full by the Merakes Block and the Muara Bakau Block," said SKK Migas Deputy for Exploitation Wahju Wibowo.
Wahyu added that the new facilities resulting from gas processing from the North Ganal Block will also be able to be channeled to the Bontang Refinery which is currently experiencing uncertainty in gas supply, due to the problem of decreasing production in a number of oil and gas working areas.
"If it could be developed, the current Bontang Refinery only has 2-3 trains, with supplies from North Ganal it could have 4-5 trains. "It was previously thought that the Bontang Refinery would die, now it can have a longer life," he said.
ENI said that the discovery of significant amounts of natural gas reserves came from the Geng North-1 exploration well in the North Ganal Block, around 85 kilometers off the coast of East Kalimantan in Indonesia.
Based on Eni's official statement, initial estimates show that the total structure discovered is 5 Tcf of gas with a condensate content of around 400 Mbbls. The data obtained by the company also allows for faster development studies later.
The Geng North-1 well was drilled to a depth of 5,025 meters in a water depth of 1,947 meters; passing through a gas column approximately 50 meters thick in a Miocene sandstone reservoir with good petrophysical properties.
The well production test (DST) has been successfully carried out for a comprehensive assessment of the gas discovery. Although limited by testing facilities, this study allows for estimates of the well capacity of up to 80-100 MMscfd and approximately 5-6 kbbls of condensate.
It is also believed that the findings will contribute significantly to the formation of a new gas production hub in the northern part of the Kutai Basin. In addition, the findings will be connected to the Liquefied Natural Gas/LNG facility at the Bontang refinery, in East Kalimantan, Indonesia. Apart from Geng North, it is estimated that there are more than 5 trillion cubic feet of gas in undeveloped fields within the oil and gas block.
The Indonesian oil and gas authority also believes that these findings can encourage more massive exploration investment in the future, considering that the potential for oil and gas in Indonesia is still very promising because there are still 68 basins out of a total of 128 oil source basins that have not been drilled.
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