Gas output at SES block reaches 120 mmscfd

By Febry Silaban

Gas production at the South East Sumatra (SES) oil and gas block, offshore Lampung Province, currently stands at around 120 mmscfd.

?Gas production currently stands at 120 mmscfd, of which 20 percent of the gas output contains CO2,? said Mohammad Salman, Head of Gas Operation at CNOOC SES Ltd, operator of the block, on Thursday.

He said that as much as 80 bbtud of the gas output is allocated for the Cilegon gas and coal-fired power plant in Banten Province, owned by power firm PT Indonesia Power.

Meanwhile, the block?s main oil output currently reaches around 30,000 bpd.

CNOOC has a gas sales and purchase agreement with Indonesia Power for the supply of gas from December 2004 until September 5, 2018, when the current contract over the block expires. ?First phase of the gas contract was for the delivery of 60 bbtud of gas, and increase to 80 bbtud in the second phase,? Salman said, adding that the company sells the gas to the Cilegon power plant at a price of US$6.7 per mmbtu.

The SES block is located in the shallow water (17-55 m) of the Java Sea in southeast of Sumatra, about 90 km northwest of Jakarta. CNOOC SES Ltd as operator has 65.54 percent interest in the block, while the remaining interest is owned by Pertamina Hulu Energi OSES (20.55 percent), Saka Energi Sumatra (8.91 percent), and KUFPEC Indonesia (SES) B.V. (5 percent).

Editing by Reiner Simanjuntak