Eni East Sepinggan Ltd project in Merakes field in the Kutai Basin, off the coast of East Kalimantan - Photo by the company.

JAKARTA (TheInsiderStories) – Indonesia’s upstream oil and gas regulator, SKK Migas, expects 12 oil and gas projects to come on stream in 2020, the official said on Wednesday (01/15). The new projects will give the country a total combined additional production capacity of 705 million standard cubic feet per day (mmscfd) of gas and around 3,000 barrels of oil per day (bpd).

Among the biggest projects is Eni East Sepinggan Ltd project in Merakes field, East Sepinggan block that is expected to come on stream in the fourth quarter of this year, SKK Migas Deputy for Operations Julius Wiratno told reporters in Jakarta. The project is expected to have a production capacity of 400 mmscfd and gas reserves of two trillion cubic feet.

“Eni has been able to carry out the first steel cutting in only four months since the transition, which usually can only take place within one to two years,” Wiratno said, stressing the government’s commitment to supporting the upstream oil and gas capacity in order to maintain the national gas supply.

In April 2018, the government approved a proposal for the Merakes field development plan located in the Kutai Basin, off the coast of East Kalimantan. Eni plans to drill six underwater wells and build an underwater pipeline system that will be connected to the Jangkrik floating production unit in the Muara Bakau block, Wiratno stated.

Besides Eni’s project, the regulator expects four upstream oil and gas projects to come on stream in the first quarter of this year. The projects include Petronas Carigali Ketapang II Ltd’s Bukit Tua Phase 3 projects with an estimated production of 31.5 mmscfd. Then Ophir Indonesia (Sampang) Pty. Ltd’s Grati Pressure Lovering projects with an estimated production of 30 mmscfd. Furthermore, PT Medco Energi Internasional Tbk’s (IDX: MEDC) Buntal-5 project in South Natuna Sea Block B with an estimated production of 45 mmscfd and Sembakung Power Plant by PT Pertamina.

In the second quarter of 2020, there were several projects planned to operate, namely the Randu Scissors project by PT PHE Randu Scissors with an estimated production of 3 mmscfd, Betung Compressors by Pertamina with an estimated production of 15 mmscfd, Malacca Strait Phase-1 by EMP Malacca Strait with an estimated production of 3,000 bpd, Meliwis by Ophir Indonesia (Madura Offshore) Pty. Ltd with an estimated production of 20 mmscfd.

Then in the third quarter of 2020, the regulator expects three projects to be in production, starting from PT Sele Raya Belida projects with an estimated production of 2.5 mmscfd, Pertamina’s LP-MP SKG-19 Compressor with an estimated production of 150 mmscfd and PT Pertamina Hulu Mahakam projects with an estimated production of 8 mmscfd.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com