JAKARTA (TheInsiderStories) - The Special Task Force for Upstream Oil and Gas Business (SKK MIgas) at the Energy and Mineral Resources Ministry (ESDM) has approved the plan of development (PoD) of 18 oil and gas fields in the period of January-April 2016.
“The total investments are estimated to reach US41.496 billion or around Rp 19.5 trillion,” said the Head of SKK Migas Public Affair Taslim Z. Yunus in Jakarta.
The development of the oil and gas fields include plan of development (PoD), plan of further development (PoFD), and put on production (PoP). The oil and gas fields will commence production with variety of period ranging from 2016 to 2020. Of these fields, 16 fields are located in the western part of Indonesia and the other two are located in eastern region.
“This indicated that there are not many activities in the eastern Indonesia as yet, although eastern Indonesia has huge otential,” hesaid.
SKK Migas estimates that the cumulative oil and condensate production of the 18 fields would reach 45 million barrels, while gas production is expected to reach 271 billion cubic feet (BCF).
According to Taslim, the combined government revenues from those fields development are expected to reach US$3.015 billion or Rp39.2 trillion. The amount excludes the multiplier effect value. The average government gross revenues from the fields is at average higher than 60 percent.
Taslim added SKK Migas will continue its efforts to speed up the approval of PoDs as well as encourage production sharing contractors (PSCs) to improve efficiency on the back of low oil price as well as carry on exploration activities to increase oil and gas reserves and production.