SKK Migas prepares measures to deal with Kepodang field reserve drop

By Godang Sitompul

Upstream oil and gas authority SKK Migas is preparing ?scenario? to help deal with the fast drop in gas reserves of the Kepodang field in Muriah block, offshore East Java, including carrying exploration in the West and East of the block, according to a source.

?The reserve basin in the Muriah block is not homogeneous, but heterogeneous and scattered. That?s why SKK Migas will direct (the operator to carry out) drilling in East and West of Muriah block. If successful in finding (new reserves) the name of the field will be replaced with Cobra,? the source told Petromindo.com on Friday, but did not provide further details.

Last month, Petronas Carigali Muriah Ltd, which owns 80 percent operating interest in the Muriah PSC, requested for approval from SKK Migas to declare force majeure for the Kepodang field project as it has not been able to meet contractual gas supply to the Tambak Lorok power plant owned by state-owned electricity firm PT PLN as the gas reserves have declined faster than anticipated due to initial overestimation of the reserves. PT Saka Energi Indonesia, a subsidiary of IDX-listed gas distribution firm PT PGN Tbk, owns the remaining 20 percent interest in Muriah block.

Meanwhile, Deputy for Operation Control at SKK Migas, Fatar Yani Abdurahman told Petromindo.com Friday that the Ministry of Energy?s oil, gas research unit Lemigas is currently carrying out assessment to seek reasons for the sharp drop in the Kepodang field reserves. The assessment is expected to be completed within a month, he said.

Editing by Reiner Simanjuntak