Six upstream projects start production: SKK Migas

Upstream authority SKK Migas reported Friday that six upstream oil and gas projects started production in the first quarter (January-March) of this year.

SKK Migas said in a statement that the six projects include the Ario Damar-Sriwijaya project (Tropik Energi Pandan as the contractor), Kepodang Phase II (Petronas Carigali Muriah Ltd), Ridho (Odira Energy Karang Agung), Cikarang Tegal Pacing (Pertamina EP), PHE 12 (PHE WMO), dan CPP 2 (PHE WMO).

The authority said that as the projects were still at the early stage of production, output was still small. But SKK Migas expects the projects to ramp up production over time. It added, however, there will be no additional production at Kepodang Phase II as the project was only a modification of facility to maintain current production level.

In addition to the six projects, two additional projects are slated to come on-stream in April, namely SKG Musi Timur and Paku Gajah, both operated by Pertamina EP. The SKG Musi Timur gas project has a production facility with capacity of 150 mmscfd, while the Paku Gajah project has a production facility with capacity of 45 mmscfd.

Until end of March 31, the country?s oil lifting stood at 787,800 bpd, or 96.7 percent of the 815,000 bpd target set in the 2017 state budget. Oil production at the Banyu Urip field as per end of March stood at 205,119 bpd, higher than the 201,155 bpd target, SKK Migas said.

Realized gas lifting per end of March was 6,503 mmscfd, above the 6,440 mmscfd target set in this year?s state budget, the authority said.

Elsewhere, SKK Migas said that as per end of February, producing oil and gas contractors have completed drilling of 19 development wells, 119 well workover activities, and 4.350 well maintenance activities.

Contractors still in exploration stage, meanwhile, completed one seismic survey, two non-seismic survey programs, drilling of five exploration wells, and re-entry of an exploration well.

Until end of March 2017, investment spent by oil and gas contractors totaled US$1.9 billion, comprising of $1.9 billion in producing blocks, and the remainder in exploration blocks. Meanwhile, total state revenue during the period reached $3.4 billion, SKK Migas said.

Editing by Reiner Simanjuntak