47 PODs approved, govt to earn US$18.9b
Wednesday, January 2 2013 - 03:43 AM WIB
?From the approval of PODs, the government expects net revenues of about US$18.9 billion,? SK MIGAS Planning Deputy Widhyawan Prawiraatmadja said in a statement on Wednesday.
He said that the total cumulative production from the 47 PODs was estimated to reach 956 million barrels of oil equivalent, which comprise 216 million barrels of crude oil, 4.1 trillion cubic feet of gas and 7.6 million barrels of liquefied petroleum gas (LPG).
The amount of funds needed to produce these reserves would reach a total of $21.3 billion. Investment accounts for 67 percent or about $14.21 billion, operating costs accounts for 31 percent or about $6.5 billion and funds to be used for abandonment and site restoration (ASR) programs total $6.5 billion or about 2 percent of the total spending.
?SK MIGAS encourages the use of local components in procurement of goods and services in order to bring multiplier effects to the national economy,? Widhyawan said.
According to SK MIGAS, the projects approved by Energy and Mineral Resources Minister include three POD Is and revised POD I. They include POD I for Ario Damar-Sriwijaya field operated by Tropik Energi Pandan, POD I for South Sebuku operated by Medco E&P Bengara, and revised POD I for Kepodang field operated by Petronas Carigali Muriah.
Other important projects approved by the minister also include POD II for the development of third train of the Tangguh LNG plant owned by BP Berau Ltd. Total investment for the project reaches a total of $11.13 billion and cumulative production is expected to reach 2.48 trillion cubic feet of gas with peak production level of about 700 cubic feet per day.
Pertamina EP proposes 26 PODs, the largest amount of PODs being proposed by a single company. The larger number of PODs proposed by the company is in line with its program to increase oil and gas production from its fields in Sumatra and Java.
In addition, Pertamina EP has also increased reserves at aging wells through enhanced oil recovery (EOR) program using water flooding such as those carried out in Talang Jimar and Paian Timur fields.
?Renovation of production facilities is also conducted at Beringin, Prabumulih and Paluh Tbuhan Timur field to optimize production,? Widhyawan said.
He said that Chevron Pacific Indonesia proposed six PODs which included Petapahan field- Phase-1, Duri Area-8 Rindu, Duri Area-12, Sangsam, Duri Area 7 Rindu, and Jorang Deep-1 well.
Chevron will implement EOR with the use of steam flood in several fields including Duri Area 7 Rindu. The increase in the reserves from the six PODs is expected to reach 34.7 million barrels of oil and 9.9 billion cubic feet of gas with a total cost of about $850 million.
Meanwhile, Pertamina Hulu Energi (PHE) proposed three PODs. Two of them are intended for development in Offshore North West Java (ONWJ) working area and the other one is for development in the West Madura Offshore (WMO) working area.
The gas production from these fields are expected to reach 60 billion cubic feet with total investment of about $418.8 million. The gas production will be used to meet the domestic demand.
Medco E&P Indonesia also proposed three PODs for development of Lica, Rumbi and South Sebuku fields. Gas production from the South Sebuku field will be used for power generation in Nunukan regency, located at the border between East Kalimantan and Malaysia.
As many as 53 PODs were proposed in 2012, but six of them were returned because the operators failed to meet certain technical requirements. ?The number of approved PODs in 2012 reached a new record,? said Widhyawan.
Editing by Benget Besalicto Tnb.