Oil, gas projects to start production in 2014

As many as 13 oil and gas projects with a combined production capacity of 954 mmscfd of gas, and 194,121 bpd of oil will start production in 2014.

The upstream oil and gas authority SKK Migas hopes the projects can begin production on schedule. ?Any delay will affect the national oil and gas lifting this year,? said SKK Migas Public Relations Chief, Elan Biantoro on Sunday.

Some of the projects that are expected to start production this year include the Sisi Nubi 2B in the Mahakam block, with contractor Total E&P Indonesie, which is targeted to produce 350 mmscfd of gas in the first quarter of 2014.

Another is the Senoro gas development project, with JOB Pertamina-Medco Tomoro Sulawesi as the operator, which is planned to begin producing 8 mmscfd of gas and 250 bpd of oil in the third quarter.

There are projects which were supposed to start production in 2014 but were postponed to the first quarter of 2014. They include the Ridho field project, with Odira Energy Karang Agung as the operator, which is expected to produce 1,200 bpd of oil; the Gundih field, which is being developed by Pertamina EP, expected to produce 50 mmscfd of gas and 600 bpd of oil; and the Bayan A project, with Manhattan Kalimantan Investment as the contractor, which is expected to produce 15 mmscfd of gas and 250 bpd of oil.

Elan said that there are three projects which will be closely monitored by SKK Migas with regards to the size of production and the challenges faced. The first is the Bukit Tua field in the Ketapang 2 block, with Petronas Carigali as the operator, which is planned to produce 70 mmscfd of gas, and 20,000 bpd of oil in the first quarter of 2014. The thing that needs to be closely monitored is the process of negotiation of the gas price and the change in the buyer candidate, Elan said. ?Aside from this, the project uses the upstream and downstream scenario, therefore there are strategic policies taken beyond the authority of SKK Migas,? he said.

The same thing happens with the Muriah field in the Kepodan block, which is also operated by Petronas. The project with production of 116 mmscfd of gas relies on the completion of the gas pipeline in the downstream side. ?Construction of the upstream facilities will be completed in October 2014,? Elan said.

The last project is the Banyu Urip field in the Cepu block with Mobil Cepu Ltd (MCL) as the contract. The strategic project is planned to begin production in the fourth quarter of 2014 with targeted peak output of 165,000 bpd of oil. Among of the challenges include social economic issues, and a delay in the EPC process.

?These projects must be closely monitored so that there will no delay,? Elan said, pointing out to a number of measures to make sure the projects would be realized on time including intensive supervision, monthly meeting, and site visit.

No	Project name	PSCs	Capacity of production facility				Target On-Stream
			Gas		Liquid
1	Peciko 7B - New Platform	Total E&P Indonesie	170	MMSCFD	4000	BPD	Q1	2014
2	Sisi Nubi 2B - New Platform	Total E&P Indonesie	350	MMSCFD	-	-	Q1	2014
3	Peluang Development	Santos	25	MMSCFD	-	-	Q1	2014
4	POFD Bekapai Phase 2A	Total E&P Indonesie	-	-	1021	BPD	Q1	2014
5	Muriah Field Development (Kepodang)	Petronas Carigali Muriah Ltd.	116	MMSCFD	-	-	Q4	2014
6	Peciko 7C ? Extension	Total E&P Indonesie	125	MMSCFD	1500	BPD	Q2	2014
7	Ridho Field Development	Odira Energy Karang Agung	-		1200	BPD	Q2	2014
8	Bukit Tua Development	Petronas Carigali Ketapang 2 Ltd.	70	MMSCFD	20000	BPD	Q4	2014
9	Java Gas Development Project (PPGJ) ? Gundih	Pertamina EP	50	MMSCFD	600	BPD	Q1	2014
10	Bayan A Gas Production Facilities	Manhattan Kalimantan Investment	15	MMSCFD	250	BPD	Q1	2014
11	Kerendan Gas Plant	Salamander Energy - Bangkanai	25	MMSCFD	300	BPD	Q4	2014
12	Senoro Gas Development - Early Start Up	JOB Pertamina Medco Tomori Sulawesi	8	MMSCFD	250	BPD	Q3	2014
13	Banyu Urip Field Development	Mobil Cepu Ltd	-	-	165000	BPD	Q4	2014

Editing by Reiner Simanjuntak