First Production Flows at Bukit Tua Field in Ketapang Block Off East Java

Malaysia's national oil company Petroliam Nasional Berhad (PETRONAS) announced Friday that it has commenced production at the Bukit Tua field in the Ketapang Block offshore East Java, Indonesia May 17.

“We are proud that the Bukit Tua field has come on stream today and this is PETRONAS’ biggest upstream project in Indonesia, so far,” PETRONAS’ General Manager and Country Chairman of Indonesia Operations Hazli Sham Kassim said in the press release.

The Bukit Tua field in the Ketapang Block, located approximately 68.4 miles (110 kilometers) offshore East Java, is expected to produce 3,700 barrels of oil per day (bopd) and 2 million standard cubic feet of gas per day (MMscf/d) in its initial production stage. Upon ramping up operations at the field, Bukit Tua's production will increase gradually before peaking at 20,000 bopd of oil and 50 MMscf/d of gas.

Gas produced from the field will be transported through a pipeline to the onshore receiving facility (ORF) in Gresik, East Java while the oil will be offloaded to carriers for export.

“This upstream project is an integrated development as it also involves the development of other supporting facilities such as Ratu Nusantara Floating Production, Storage and Offloading facility (FPSO), a 68.4 miles (110 kilometers) subsea pipeline and an 11.6 acre (4.7 hectare) ORF,” he added.

East Java provincial government-owned Petrogas Jatim Utama has signed a gas sales and purchase agreement with PETRONAS to purchase gas produced from the Bukit Tua field for electricity generation to meet Indonesia’s energy demand.

The Ketapang block is operated by Indonesian subsidiary of PETRONAS, PC Ketapang II Ltd (PCK2L), which holds an 80 percent interest in the block, while the remaining 20 percent is held by state-owned Perusahaan Gas Negara (PGN) through its subsidiary PT Saka Ketapang Perdana.

Oil and gas supplies from the Bukit Tua field is expected to help PT Saka Energi Indonesia -- PGN's upstream arm -- to move closer to its 2015 production target of 30,000 barrels of oil equivalent per day (boepd), up from 23,000 boepd recorded at the end of first quarter 2015.

The Indonesia government has set a production target of 825,000 bopd for this year to meet rising domestic consumption, with the supply deficit currently met by costly imports.

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