Eni evaluating Merakes-Jangkrik integration plan

By Febry Silaban

Upstream authority SKK Migas said Italian firm Eni SpA is evaluating the plan of development (POD) of Merakes field project in the East Sepinggan block, East Kalimantan, which aims to integrate the project with the Jangkrik field project in the adjacent Muara Bakau block.

The Jangkrik field project is now under construction and is scheduled to come onstream in 2017.

"There was a gas discovery in Merakes. If there is an assurance that Merakes project will not disturb the Jangkrik project, both projects can be integrated. At this time, the economics of the (Merakes) project is be recalculated," spokesperson of SKK Migas Elan Biantoro told Petromindo.com.

One of the problems, he said, is the fact that the Merakes gas has yet to be certified. ?The reserve of Merakes has yet to be certified," he said.

Last month, this portal reported that Italian firm Eni SPA, the operator of both East Sepinggan and Muara Bakau blocks, had submitted a Put on Production (PoP) plan for the Merakes field to SKK Migas and the Ministry of Energy and Mineral Resources, in which it proposed to accelerate the production of the field, noting that the acceleration is possible given the fact that the field is located close ? around 30 km away ? to the Jangkrik field. The firm proposed that the facilities now being constructed for Jangkrik gas can also be used to process and deliver gas from Merakes. The gas from both fields will delivered to the Bontang LNG plant for processing into LNG.

In the fourth quarter of last year, the Italian firm announced the discovery of 1.3 tcf of gas reserve in Merakes-1, the first well to be drilled by the firm in the East Sepinggan block. On March 17, 2015, after completing post-drilling studies, the firm announced the size of the gas reserve had been upgraded to 2 tcf of gas in place.

Eni holds a 85 percent interest in the block while state owned oil and gas firm PT Pertamina (Persero) holds the rest.

Editing by Johannes Simbolon