Minister soon to sign PoD for Nunukan PSC
Monday, February 15 2016 - 02:59 PM WIB
Minister of Energy and Mineral Resources Sudirman Said is expected to soon sign the First Plan of Development (PoD 1) of Badik and West Badik fields in Nunukan PSC in North Kalimantan, a senior official of the ministry said on Monday.
?The PoD will be signed soon,? Director General of Oil and Gas IGN Wiratmaja said in a statement.
Approval from the North Kalimantan provincial administration for the PoD ? a crucial administrative requirement for the PoD ? has been obtained, Djoko Siswanto, Director for the Management of Upstream Activities at the directorate general, said, adding that the ministry and the provincial administration signed the agreement on the PoD on Feb. 4.
Gunung Sardjono, President Director of PT Pertamina Hulu Energi (PHE) which operates the block said under the PoD, Badik and West Badik fields will produce 1,800 bpd of oil and 60 mmscfd of gas.
The project includes the drilling of eight wells and installment of three offshore rigs, subsea pipeline to deliver to output to onshore processing facility on Bunyu Island.
If engineering and commercial aspects are complete in line with the timeline, Final Investment Decision (FID) for the project is scheduled to be made at the end of this year. It will be followed by EPCI works which take at least two years. The Badik and West Badik fields are thus expected to start producing in 2019, he said.
?Based on plans, gas from the fields will be used local, while the oil will delivered to Pertamina?s Balikpapan refinery (in East Kalimantan) alongside oil from the fields operated by Pertamina EP Bunyu and Pertmina EP Sembakung,? he said.
One option for the utilization of the gas from the fields is to channel it to Pertamina?s ethanol plant on Bunyu. The plant has been long deactivated. The firm will carry out a study to check the plant before making a decision to channel the gas to the ethanol plant, he said.
The block is operated by PT Pertamina Hulu Energi with a 66.67 percent interest. It partners with Indian firms Videocon Industries (20.83 percent) and Bharat PetroResources Ltd. (12.50 percent).
Editing by Johannes Simbolon