PHE ONWJ starts development of SP field
Tuesday, September 26 2017 - 01:17 AM WIB
Petromindo|Khalsa
PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ), operator of the ONWJ block, said it has started development of SP field in the block, marked with a ribbon first cutting ceremony at SPA platform in Handil-1 Yard, Kutai Kartanegara, East Kalimantan Province, early this month.
The company said in a statement on Monday that the estimated US$92.7 million project comprises of construction of offshore SPA platform, installation of 11.3-km underwater pipeline, and drilling of three development wells.
It added that the project is the first field development implemented under the new gross split scheme, under which the government would no longer reimburse expenses of oil and gas contractors in return for greater output split. Under the previous cost recovery scheme, the government reimbursed the operating and investment costs of the contractors.
PHE ONWJ said that the SP field is expected to start production in 2018, which will reach a peak gas production of 30 mmscfd, all of which to be allocated for the domestic market.
Local company PT Meindo Elang Indah has been appointed as the EPCI contractor for the SP field development project.
The ONWJ block is one of the oldest offshore blocks in the country which started production in 1971. Nevertheless, the block is still able to provide significant production of 33,000 bpd of oil and 126.8 mmscfd of gas.
Editing by Reiner Simanjuntak