PHE: Environmental study of MNK shale gas project to be completed 2014
Monday, January 6 2014 - 02:00 AM WIB
PT Pertamina Hulu Energy (PHE), a subsidiary of state-owned oil and gas firm Pertamina, expects the current environmental assessment study for the MNK shale gas block project carried out jointly with the North Sumatra University can be completed this year.
Corporate Secretary of PHE Wahidin Nurluzia told Petromindo.com on Monday that once the environmental assessment is completed, the company will then proceed with the geological, geophysics, and reservoir studies.
He said that the company has not yet determined the schedule for drilling nor seismic campaign.
The MNK shale gas production sharing contract (PSC) was signed by Pertamina in May of last year, which is considered as the first in the country.
The PSC covers a vast area in Northern Sumatra, familiarly known as Sumbagut. The MNK Sumbagut block is believed to hold 18.56 trillion cubic feet (TCF) of shale gas), while Indonesia is estimated to hold 574 tcf of shale gas. MNK, an Indonesian acronym, stands for ?migas non konvensional? or non-conventional oil and gas.
Pertamina targets maiden production to occur in the seventh year operation or six years after exploration with a production rate of 40-100 mmscfd.
Editing by Reiner Simanjuntak