Investment in Nunukan reaches $556m
Friday, April 8 2016 - 02:37 PM WIB
State owned oil and gas firm PT Pertamina and partners will invest US$556.5 million for the development of Badik and West Badik fields in Nunukan PSC in North Kalimantan province, a senior official of the ministry of energy and mineral resources said on Friday.
?Investment for Badik and West Badik fields, excluding sunk costs, is estimated at $556.5 million with state revenue estimated at $441.5 million,? Director General of Oil and Gas IGN Wiratmaja said.
He said the Plan of Development (PoD) 1 of the fields was approved by Minister of Energy and Mineral Resources Sudirman Said through a letter dated March 30, 2016 sent to upstream authority SKK Migas.
?Actually, the block is not big. But (the development of) the block is considered consequential given its position on the border (of Indonesia and Malaysia),? he said.
He said the block?s reserve is estimated at 8.37 million stock tank barrels (mmstb) of oil and 280.24 billion standard cubic feet (bscf) (90 percent PI + 50 percent P2) of gas. Production is scheduled to start in 2019 with cumulative production until the end of the contract estimated at 1.05 mmstb of oil, 3.54 million barrels of condensate and 212.66 bscf of gas.
The Badik and West Badik fields are located in Bulungan regency, around 6.67 nautical miles off the coast of Bunyu Island.
PT Pertamina Hulu Energi, the operator, holds 66.67 percent of the block, with partners India Videocon Industries and Bharat PetroResources Ltd holding 20.83 and 12.50 percent each.
Editing by Johannes Simbolon