Production at Mahakam Block down in past two months

Gas production at the Mahakam Block in Bontang, East Java, has been declining during the past two months, but upstream oil and gas regulator BPMIGAS is confident that the production decline will not affect production at the Bontang LNG facility.

Production at the Mahakam Block normally runs at 2,227 mmscfd. ?But during the past two months, gas (production) at the Mahakam Block has declined by 200 mmscfd, this is because of the aging field,? said Head of BPMIGAS Priyono last week.

Priyono said that to revive production at the block operated by Total EP Indonesie, there must be new exploration. Priyono said that despite the drop in the gas production, supply for the Bontang LNG has not been disrupted. ?So far according to report there is no impact on LNG export,? he said.

LNG export contracts are to buyers in South Korea, Taiwan, and Japan. Domestic buyer of the gas from the Bontang LNG facility is the West Java FSRU.

According to Priyono, the decline in the gas production at the Mahakam Block does not affect supply for the West Java FSRU. ?Coincidentally, the demand from the West Java FSRU also declines as the requirement of PLN is not according to plan,? he said.

The Mahakam Block is the largest gas supplier for the Bontang LNG. About 82 percent of gas supply for the LNG facility comes from the Mahakam Block, which is equally owned by Total E&P Indonesie and Inpex Corporation. This year, the Bontang LNG production target is 15.35 million tons or 271 cargoes, lower than last year?s 16.48 million tons or 313 cargoes.(*)