SKK Migas Approves Tiung Biru, Jambaran Field Development Plan in Java

Indonesia's Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) approved the revised development plan for the onshore Tiung Biru and Jambaran fields in Java, the regulator announced earlier this week. 

SKK Migas Chairman Amien Sunaryadi handed over the revised development plan to partners of the cooperation contract (KKKS), comprising PT Pertamina EP Cepu, PT Pertamina EP, ExxonMobil Cepu Ltd., and the Cepu Block PI (Participating Interest) Cooperation Agency Monday.

The fields are expected to commence production at 227 million cubic feet of per day (MMcf/d) of natural gas per day in the first quarter of 2019, “and to reach the peak production of 315 MMcf/d in 2020,” Amien said.

The partners will invest around $2.056 billion (IDR 28 trillion) in the project, comprising six development wells at a cost of $279.5 million and the $1.777 billion for production facilities, including supporting facilities.

Indonesia's Ministry of Energy and Mineral Resources has allocated gas from the project for the domestic market, while condensate and produced water will be supplied through separate pipelines from the gas processing facility to Banyu Urip facility for further processing.

SKK Migas said the project is expected to utilize local workers who are currently completing the project of Banyu Urip field in Bojonegoro, East Java.

The Tiung Biru field -- located within Pertamina EP’s Cepu operations area -- is adjacent to the giant Cepu oil and gas block jointly operated by ExxonMobil Cepu Limited (EMCL) and Pertamina EP Cepu (PEPC), while the Jambaran gas field is located within the Cepu block, operated by EMCL -- a unit of ExxonMobil Indonesia. EMCL and Pertamina EP Cepu agreed in September 2012 to unitize both fields.

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