Part of gas production from Muara Bakau to be exported next year
Saturday, November 19 2016 - 03:34 AM WIB
The Ministry of Energy and Mineral Resources said that part of the gas production from the Jangkrik field in Muara Bakau block, East Kalimantan, operated by Italian firm Eni Spa, will be exported next year.
Director General of Oil and Gas at the ministry IGN Wiratmaja Puja said on Friday that so-called Tranche C of the gas output is allowed for export as it would not be absorbed at home.
?Tranche C is allowed to be exported because it?ll not be absorbed at home. Meanwhile Tranche A and Trance B will be mostly allocated for Pertamina (state-owned oil and gas firm) and PT PLN (state-owned electricity firm,? Wiratmaja said without disclosing the gas volume to be exported.
He said that international buyers have already made an offer for the Jangkrik LNG output. As such, uncommitted LNG cargo next year will be lower than the initial projection of 63 cargoes.
He pointed out that eight LNG cargoes have already found buyers for next year. Therefore, only 53 LNG cargoes remain uncommitted. He did not specifically say whether the eight LNG cargoes include the Tranche C Jangkrik output.
The Jangkrik project covers two fields in Muara Bakau PSC, namely Jangkrik and Jangkrik North East fields. Eni is the operator of the block with a 55 percent working interest, whereas the other JV partners are GDF Suez Exploration Indonesia, a subsidiary of ENGIE, formerly GDF SUEZ, with 33.334 percent stake and Saka Energi Muara Bakau with 11.666 percent stake. In March, this portal reported that GDF Suez planned to sell its stake in the block.
Editing by Reiner Simanjuntak