Madura Limited, Madura BD Field Operator, Madura Strait Block, is still waiting for potential buyers of natural gas from the field to increase peak production by 110 million cubic feet per day.
Currently, natural gas production from gas fields operated by Husky Energy and CNOOC Limited is only 40 million cubic feet per day (MMscfd) and condensate 3,000 barrels per day (BPD). All gas production at present is 40 MMscfd sold to PT Perusahaan Gas Negara Tbk. BD field produces its first gas since July 26, 2017.
General Manager of Husky-CNOOC Madura Limited (HCML) Huang Chunlin said that the gas field production located in Madura Strait can be raised up to 110 MMscfd and 7,000 BPD condensate in January 2018.
According to him, HCML is still negotiating price and gas supply with PT Petrokimia Gresik and PT Inti Alasindo Energy which will cooperate with PT Pertamina Gas as gas to the consumer.
"We are still waiting for other gas buyers to raise the peak production, which is 110 MMscfd. The possibility of peak production will be achieved in January 2018, "he said while assisting the Vice Minister of EMR in Arcandra Tahar inaugurated the first gas field production BD, Wednesday (20/9).
BD Field is located off the coast of Madura Strait, about 52 km east of Pasuruan (East Java) and 16 km south of Sampang Regency, Madura Island. The field has gas reserves of 442 billion cubic feet (BCF) and condensate of 18.7 million barrels. Huang added that to achieve the project's economic level, gas and condensate production from BD Field will be done for 14 years.
BD field has four wells. Gas and condensate production is channeled to the floating production storage and offloading (FPSO) of Karapan Armada Sterling III owned by PT Amtada Gema Nusantara. The gas from the FPSO is channeled through a 52 km subsea gas pipeline to a gas metering station (GMS) located in Pasuruan which is then delivered to PGN.
According to him, the price of gas sold by HCML to PGN is the US $ 7 per million British thermal units (MMBtu). FPSO Karapan Armada Sterling III was imported by PT Armada Gema Nusantara (Malaysia FPSO provider, Bumi Armada Bhd.) In January 2017. Armada Gema Nusantara ordered the FPSO from Keppel Oil, a Singaporean oil and gas company, then Fleet Gema Nusantara rented the FPSO to HCML.
INVESTMENT US $ 300 MILLION
Huang added BD field development investment reached the US $ 300 million used for construction and drilling. The investment fund is outside the cost of leasing the FPSO from Armada Gema.
In addition to Arcandra Tahar, the inauguration of BD Field gas production was also attended by Deputy Head of SKK Migas Sukandar and Sampang Regent Fadillah Budiono. Husky Energy, the Canadian oil and gas company, holds a 40% stake in Madura BD Field.
Meanwhile, China's oil and gas company CNOOC Limited holds a 40% stake. The remaining 20% is owned by Samudra Energy Limited, an Indonesian oil, and gas company established by Patrick Sugito Walujo, son-in-law of T.P Rachmat.
EMR Deputy Minister of Energy and Mineral Resources, Arcandra Tahar, said that the production of BD's field through a long process. Since the BD Fields BD production contract was signed in 1982, the new oil and gas well-produced commercial gas in July 2017, takes 35 years.
"In the 1970s, it only took 5 years to reach the production stage, now it takes an average of 15 years to reach the production stage," he said.
He explained that the length of time in the development of oil and gas blocks to reach the oil and gas production will affect the efficiency of the project. The longer the time it takes, the project will not be efficient. Therefore, the government is currently using a gross split contract scheme to replace the profit-sharing contracts for returned operating costs.
"Through gross split, the procurement process is faster so the project will be efficient and reduce costs."
Bisnis Indonesia, Page-28, Friday, Sept 22, 2017
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