Kangean Energy completes flow tests in Terang development wells

Indonesia-listed oil, gas firm PT. Energi Mega Persada Tbk (EMP) announced Monday that its 50% owned subsidiary, Kangean Energy Indonesia Ltd. (KEI) has successfully completed the flow tests in the Terang development wells and confirmed the wells? encouraging production rate.

KEI started the Terang gas field development in January 2010, which was followed by the Floating Production Unit tanker (FPU) construction in July 2010. The development wells drilling activities were initiated in November 2010. The Terang gas field is part of the Terang, Sirasun, and Batur gas fields (TSB) which is located offshore, some 90 km north of Bali island.

The Terang gas field?s 5 wells are expected to commence first gas at 300 million cubic feet per day (60 million cubic feet per day for each well) in March 2012, EMP said in statement.

The produced gas will be gathered in the FPU, and then transported through the available East Java gas Pipeline to be sold to consumers in East java which include PT Perusahaan Listrik Negara (PLN), PT Petrokimia Gresik (PKG), PT Pertagas, and PT Indogas.

Upon the commencement of the Terang gas production, KEI plans to start the development of the Sirasun and Batur gas fields. Furthermore, the evaluation of the West Kangean gas field and South Saubi prospects will also be considered.

TSB gas fields are part of Kangean PSC, onshore/offshore East Java. Japex and Mitsubishi are the remaining 50% owner of KEI. (godang)