East Natuna PSC to be signed next month: Official
Saturday, August 27 2016 - 01:37 AM WIB
Wiratmaja said in a statement on Thursday that the government wants East Natuna to quickly start production as the block holds huge reserves, and in a bid to help maintain the country?s sovereignty amid fears that other countries may stretch their borderlines if East Natuna is not developed.
?So, we?re preparing the PSC document, which hopefully can be signed in September,? Wiratmaja said.
He said that the government has assigned state-owned oil and gas firm PT Pertamina to develop the block, and is allowed to have a partner. He said that once the PSC has been signed, exploration activities are expected to follow, in the hope that oil production can start within three years. Gas production will start in later period due the high CO2 reserves.
Wiratmaja explained that the terms and conditions of the PSC related to the oil production will be fixed, while the clauses related to the gas production will be made in general terms pending completion among others of the technology review.
The East Natuna block, formerly called D-Alpha, is estimated to hold up to 200 tcf of gas reserve, the largest gas reserve ever found in Indonesia. However, only 46 tcf of the gas is said to be recoverable due the high CO2 element contained in the reserve.
In relation to the planned production of the East Natuna block, the government is also planning to develop an offshore mini refinery with a capacity of 20,000 bpd, which if realized will be the first in the world.
The capacity is designed to be in line with the production capacity of East Natuna block, which is expected at 7,000-15,000 bpd. The government plans to offer the mini refinery project to private investors, but no investor is interested, the government will develop the refinery.
Editing by Reiner Simanjuntak