Thu, 11 Aug 2011
From:
VIVAnews - Among 10 largest projects handled by Oil and Gas Upstream Regulator (BP Migas), natural gas is the highest. The ten projects are worth US$ 4.725 billion, with a production design capacity of 1,750 million cubic feet of natural gas per day, 26,000 of condensate per day, and 20,000 of oil per day.

Head of Public Relations, Security, and Formality Division of BP Migas Gde Pradnyana explained those projects are apart from the project of Banyu Urip field in Cepu Block of which investment value is estimated to reach US$ 1.3 billion and the production is targeted to reach 165,000 barrels per day.

"For those ten projects, the first production period is between 2011 and 2014," Gde said here on Tuesday evening, August 9.

Out of the ten projects, only one project is for petroleum, namely the Ujung Pangkah Development with the operator Hess Indonesia. The production design capacity is 20,000 barrels of oil per day and 150 million cubic feet of gas per day.

The remaining nine, Gde continued, are gas projects. These are, among others, the Terang Sirasun Batur (TSB) with the operator Kangean Energy and production design capacity of 300 million cubic feet per day in the second quarter of 2012, and the Sisi Nubi 2B project - New Platform with the operator Total E & P Indonesie and production design capacity 350 million cubic feet per day in second quarter of 2013.

According to him, the increase in oil production as large as that of Banyu Urip project is most unlikely to recur in the next five years. This is because in the last ten years reserves of oil in a large scale have not been discovered.

During the exploration, gas is the highest reserve discovered, for example, Masela project in the Arafura Sea with Inpex as the operator, and Genting Oil in Kasuri Block, West Papua, as well as East Natuna Block, Riau Islands.

"This condition shows that the future of oil and gas production in Indonesia is dominated by natural gas," he said.

He affirmed, the increasing gas production is prioritized for domestic needs, without putting aside the exports for the state revenues. For example, the Ruby project with Pearl Oil Sebuku as operator, of which gas has been allocated for East Kalimantan fertilizer plant (PKT) V,"so are the TSB and Ujung Pangkah projects, whose entire gas production is to supply for electricity and industrial needs in East Java."

However, he reminded, domestic consumers should pay attention to the price in that gas project can go on. "The current price of below US$ 3 per cubic feet of gas is difficult to maintain because it does not make the development of the field possible," he said.



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