Saka strikes gas in South Sesulu

By Godang Sitompul

PT Saka Energi Indonesia, a subsidiary of state-controlled PT Perusahaan Gas Negara (PGN), has discovered a gas reserve of 500 billlion cubic feet in South Sesulu offshore East Kalimantan, according to an official of the firm.

Saka?s President Director Firman Ardini Yaman said the gas discovery was made during the drilling of the first well of the block, SIS-A#1 on December 23, 2014 using the Rowan Gorilla II rig. The well was drilled to the depth of 2,880 on Feb. 23

?Next, we shall drill the second well 1.5 km west of the first well,? Firman said.

He said the firm expected to collect more data on the block?s reserves from the second well, find out whether there is another reserve there or there is also oil there.

Saka?s Operational Director Tumbur Parlindungan said wile the firm is seeking to ascertain the exact amount of the blocks reserve, the Saka team is now considering options to commercialize the gas. The gas is likely to be sold to state owned fertilizer firm PT Pupuk Kaltim or processed into LNG at the Bontang LNG plant. The gas will be delivered through the gas pipeline owned by Mubadala Petroleum.

?While studying the commercial options, we have started preparing Plan of Development (PoD) for the block. We expect to submit the PoD in 2017-2018,? Tumbur said.

In October 2013, Saka acquired a 100 percent stake in South Sesulu block from US company Hess Corp.

Editing by Johannes Simbolon