Indonesia's junior oil and gas exploration and production company PT Saka Energi Indonesia is expected to achieve full gas production at the South Sesulu block working area in Penajam Paser Utara, offshore East Kalimantan in 2019, an official said, as reported Tuesday by a local newspaper.
“Thanks to the company’s hard work, we have found a new gas reserve, which can add to the number of gas wells in Penajam Paser Utara regency (located around 37.2 miles or 60 kilometeres off Balikpapan),” Penajam Paser Utara deputy regent Mustaqim MZ told Antara news agency, as quoted in The Jakarta Post.
The new gas reserve is likely to flow at a rate of 18 million standard cubic feet per day (MMscf/d) and the discovery could potentially raise gas reserves of the former member of the Organization of Petroleum Exporting Countries (OPEC) by 1.2 trillion cubic feet (Tcf).
Last month, Indonesia -- Southeast Asia's largest country -- set its 2016 gas production target at 1.1 to 1.3 million barrels of oil equivalent per day (boepd), while the goal for oil production was pegged at 800,000 to 830,000 barrels of oil per day (bopd), compared to 825,000 bopd for this year.
Saka Energi, which holds a 100 percent stake in the South Sesulu block, made the gas discovery at the PSC’s SIS-A #1 exploration well in May and disclosed plans to drill three exploration wells within the next two years. The firm -- a subsidiary of Indonesia's largest natural gas transportation and distribution company PT Perusahaan Gas Negara (Persero) Tbk (PGN) -- said the South Sesulu discovery has a 2P (Proven and Probable) gas reserve of around 500 billion cubic feet (Bcf) and it intends to submit a plan of development for the block in 2017-2018.
Local authorities have welcomed news of the gas production at the South Sesulu block, which is expected to provide economic benefits .
“The new gas reserve will boost the regency’s PAD (recurring revenues from oil and gas revenue-sharing) and this will eventually accelerate development growth in Penajam Paser Utara,” Mustaqim said.
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