Jakarta, Petrominer — Since Petronas’s presence in Indonesia in the year 2000, out of 10 oil & gas work areas it operates only four are in production. Two of them are Kepodang and Bukit Tua Fields. The two fields even become the biggest project of Petronas in Indonesia. Oil and gas production in the two fields provide a significant contribution to the availability of energy in the country.
It is obvious that the Director General of Oil & Gas, Ministry of Energy and Mineral Resources (ESDM), IG Nyoman Wiratmaja Puja, praised it. “At the time the world oil price plunges, Petronas Indonesia speed on to complete the two projects. This is fit to be made an example by other oil & gas companies,” said Wiratmaja at the inauguration of the production of Bukit Tua Field in early November 2015.
It was Hazli Sham Kassim, Country Chairman Petronas Indonesia, one of the persons behind the success of Kepodang and Bukit Tua Fields.
“Bukit Tua Field is situated in the north sea of East Java, about 35 kilometers north of Madura Island with a peak production capacity up to 20 thousand barrel of oil per day (bopd) and 50 million standard cubic feet of gas per day (MMSCFD),” said Hazli in Surabaya recently.
Kepodang Gas Field is about 180 kilometers northeast of Semarang offshore East Java. Kepodang Field encompasses a 2779 km area. Kepodang Field produced its first gas on August 22, 2015 with the latest average production of up to 116 MMSCFD.
The gas from Kepodang Field had been dedicated for Tambak Lorok power plant in Semarang that helps to maintain the supply of electricity in Central Java and its surrounding areas, simultaneously helping the government to press down power subsidy.
When asked about investment, Hazli said that Petronas has invested up to US$658 million for Bukit Tua Field and US$524 million for Kepodang. The shareholders in the two fields are 80 percent Petronas and the rest PT Saka Ketapang Perdana and Saka Energy Muriah Ltd.
Touching about technology, he said that Petronas employ the Cyclone Solid Removal technology for Bukit Tua project and had been economizing cost up to US$16.6 million. This is for the oil to surface quicker. For Kepodang project, Hazli said, Petronas utilized the float over method for the first CPP Topside installation and the segmentizer technology.
Next year, exploration wells will be one well in Bukit Tua Field, Ketapang work area (WK), East Java, and two in North Madura II WK in Madura. To carry out exploration in one well, Petronas will spend some US$30 million, thereby for three wells Petronas has to be ready with funds of US$100 million.
Specifically for Bukit Tua, in the third quarter of next year Petronas is planning to have five wells from the two wells that had already been producing 10 thousand to 12 thousand bopd. This development has been accomplished at the end of November with an initial production between four thousand to six thousand bopd. While a total peak production of Bukit Tua is expected to reach 20 thousand bopd.
The total planned capital expenditures of Petronas Carigali in 2016 is US$300 million, prioritized to finance upstream activities for exploration wells and production development and is entirely from internal cash. The realization of capital expenditures has reached 90 percent so that by the end of the year the money is expected to be absorbed entirely.
With an area 16 times of Malaysia, Indonesia still stores a quite attractive oil & gas potential. Many of the national oil & gas potential have yet to be explored. To this end, Petronas Carigali continues to increase its investment in the upstream oil & gas sector in Indonesia. Apart from carrying on the development of the existing projects, Petronas is also starting to work on new projects. We are to be more focused on Indonesia’s upstream oil and gas and maintain our commitment to Indonesia.
Hazli elaborated that Petronas no longer have any business plan in the downstream At present Petronas is observing and studying various unconventional and deep sea potentials. If it is a big potential, and we are given the opportunity, probably we might be interested. (W18)
