Gas dominates 10 largest oil,gas projects

Gas dominates ten of the largest oil and gas development projects in Indonesia currently being handled by the upstream oil, gas regulator BPMIGAS. Gde Pradnyana, the Agency's Division Head for Public Relation, Security and Formality Affairs, said the ten largest projects are investing around US$4.725 billion with production capacity of 1,750 million standard cubic feet (MMSCFD), 26,000 condensate per day and 20,000 barrels of oil per day.

?The early production of the projects will commence in between 2011 and 2014,? said Gde in Jakarta yesterday.

The projects exclude the Banyu Urip, Cepu Block project, whose investment is estimated to reach US$ 1.3 billion. The block is targeted to produce 165,000 barrels of oil per day.

Gde said of the 10 projects, there is only one oil development project, namely the Ujung Pangkah Develop, operated by Hess Indoensia with design production capacity of 20,000 BPD and 150 MMSCFD of gas. The others are gas projects, such as Terang Sirasun Batur (TSB), which is being developed by Kangean Energy with design capacity of 300 MMSCFD of gas per day and the Sisi Nubi 2B project (new platform).

The TSB project is scheduled to come on stream in second quarter 2012. The Sisi Nubi project, operated by Total E&P Indonesie with production capacity of 350 MMSCFD, is scheduled to start commercial production in second quarter 2013.

Gde said there are no other major projects with scale similar to Banyu Urip, Cepu project in the next five years as there have been no major oil discoveries over the past 10 years. Most of major discoveries are gas reserves, such as in Masela, Arafura Sea (Inpex), Genting Oil in Kasuri Block, West Papua and East Natuna block in Riau Islands. ?This indicated that natural gas will dominate oil and gas production in Indonesia in the future."

Gde said the additional gas output will be mostly supplied to domestic market, such as Ruby gas project, which is being developed by Pearl Oil Subuku. Gas from the project will be delivered to Pupuk Kaltim fertilizer plant (PKT) V, while the TSB and Ujung Pangkah gas output will be delivered to meet electricity demands in East Java.

He reminded that domestic consumers should purchase gas at acceptable price. At present, a price below US$3 per cubic-feet may discourage contractors to develop gas projects. (godang)

No.	Project	Contractor (KKKS)	Capacity	Estimate Production
1.	Madura BD Development	Husky Oil Madura	Gas Production : 100 MMSCFD Condensate : 6600 BPD	Q4 2014
2.	Terang Sirasun Batur	Kangean Energy Indonesia	Gas: 300 MMSCFD	Q2 2012
3.	Gajah Baru	Premier Oil Natuna	Gas 210 MMSCFD	Q4 2011
4.	Ruby Gas Field Development	Pearl Oil Sebuku	Gas 100 MMSCFD	Q3 2013
5.	South Mahakam Field Development Phase 1 & 2	Total E&P Indonesia	Gas Production : 128 MMSCFD Condensate : 5900 BPD	Q3 2012
6.	South Belut	ConocoPhillips Indonesia	Gas 120 MMSCFD + 1000 BPD condensate	Q4 2013
7.	Jambi Merang Field Development	JOB Pertamina-Talisman Jambi Merang	Gas: 155 MMSCFD Condensate: 12.500 BPD	Q2 2011
8.	Ujung Pangkah Development Project	Hess Indonesia Pangkah	Oil : 20000 bopd Gas : 150 MMSCFD	Q3 2011
9.	Naga- Pelikan	Premier Oil Natuna	Gas 130 MMSCFD	Q4 2013
10.	Sisi Nubi 2B - New Platform	Total E&P Indonesia	Gas 350 MMSCFD	Q2 2013