Mubadala Petroleum announced Wednesday that production has commenced and stable flow has been established through the export pipeline at the Ruby gas field in Indonesia. The Ruby gas field is located within the Sebuku Production Sharing Contract (PSC) in the Makassar Strait between the islands of Kalimantan and Sulawesi.
The Ruby gas development project has been delivered safely, within budget and as planned in October 2013. Mubadala Petroleum and its partners, Total E&P Sebuku and Inpex South Makassar Ltd., have invested approximately $500 million in building the project’s facilities. Gas from Ruby is supplied to the buyer, PT Pupuk Kalimantan Timur, for use in a fertilizer plant operating in support of Indonesia’s National Food Security Program.
Suhail Al Mazrouei, chairman of Mubadala Petroleum, said, “This is a great milestone for Mubadala Petroleum. The project represents the single largest energy investment in Indonesia by a U.A.E. (United Arab Emirates) company. As the first project in Mubadala Petroleum’s global portfolio that, as operator, we have taken through the full upstream cycle, from exploration and appraisal, through development and now into production, it is a significant demonstration of the company’s capabilities.”
Maurizio La Noce, CEO, Mubadala Petroleum said, “It is very important to have completed the Ruby development efficiently, on time and within budget and, most importantly, safely. I want to congratulate everyone who contributed to the 10 million man-hours of work in the project development and construction phase for maintaining an exemplary safety record, among the best in class when compared to current international oil and gas industry performance standards.”
“Aligning the Ruby project with the priorities of the Indonesian Government by selling gas to a domestic fertilizer plant enabled us to advance the project more efficiently and meaningfully support the growth of the Indonesian economy.”
First gas from Ruby follows a safe and successful hook-up and commissioning phase and parallel operations drilling Ruby’s four production wells, which commenced with the completion of the installation of the offshore platforms in June 2013. All platform facilities were constructed in Indonesian fabrication yards between September 2011 and March 2013. The topside modules for the tripod wellhead platform (WHP) and the processing and quarters platform (PQP) were constructed in Pendingan and Handil, respectively, and WHP and PQP steel jackets in Batam. The 194 mile (312 kilometer)-long subsea pipeline that connects the Ruby platform to the dedicated terminal for processing at the Senipah onshore gas plant, operated by Total E&P, was installed at the end of 2012.
The development of the Ruby gas field was sanctioned in June 2011. Mubadala Petroleum, through its Indonesian affiliate, holds a 70 percent working interest and is the operator of the Sebuku PSC. Total E&P Sebuku and Inpex South Makassar, Ltd. equally hold the remaining 30 percent. Approximately 250 billion cubic feet (Bcf) of gas will be produced for sale to the domestic market over the life of the field.
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