The upstream oil and gas authority SKK Migas said Repsol SA of Spain has proposed plan of development (POD) for Sakakemang block, located in Musi Banyuasin, South Sumatera.
Interestingly, the company proposes the POD with lower certified gas reserves of 1 trillion cubic feet (tcf), compared to earlier announcement of 2 tcf.
The Head of SKK Migas Dwi Soetjipto said the lower certified gas reserves was done intentionally in order to speed up of the development of the Sakakemang block, Kontan daily reported.
It will take longer time if the company awaits for the completion of the certification process for the 2 tcf potential reserves of gas in Sekakemang block.
Repsol announced in February of this year new gas discovery of about 2 tcf at the Sakakemang block, which was dubbed by SKK Migas as giant discovery. The company, however, said that it needs to carry out another drilling to confirm the discovery.
Deputy Minister of Energy and Mineral Resources Arcandra Tahar said recently that if Repsol is already convinced with the economics of the Sakakemang block project, it is allowed to quickly submit the POD.
Arcandra said that the government will support Repsol’s plan to accelerate the production process of the Sakakemang block to within three years after gas was discovered by way of utilizing the existing production facilities at nearby Corridor Block.
The Sakakemang block is operated by Talisman Sakakemang B.V., which holds a 45 percent interest, while Malaysia’s Petronas holds another 45 percent interest, and Mitsui Oil Exploration Co. Ltd holds the remaining 10 percent interest. Repsol acquired Talisman in 2015. (*)
