ISOG achieves first gas at Karamba Field, East Kalimantan

SKK Migas has commended the hard work and collaboration of all parties that enabled the Karamba Project to achieve first gas quickly and safely. PT Indo Sino Oil and Gas (ISOG) has successfully achieved first gas from the Karamba Field in the Wain PSC Working Area, onshore East Kalimantan, in a strategic move to support national energy security. “SKK Migas appreciates the hard work and collaboration of all parties so that the Karamba Project could achieve first gas quickly and safely,” said Head of SKK Migas Djoko Siswanto in a statement received in Tuban, East Java, on Wednesday. The Karamba Field will commence initial production at 4 million standard cubic feet of gas per day (MMscfd) and is targeted to increase to a plateau production rate of 7.35 MMscfd by the fourth quarter of 2026. The gas produced will be channelled to meet the energy needs of the Balikpapan Refinery Unit V through infrastructure cooperation with PT Pertamina Hulu Kalimantan Timur (PHKT). This success was achieved through rapid project development. ISOG completed the Karamba project in just 25 months after the Engineering, Procurement, Construction and Installation (EPCI) contract was awarded in April 2024. “We hope that production from the Karamba Field can reach its target and make a positive contribution to increasing national gas production,” said Djoko. ISOG President Director Tang Zhongfu stated that this achievement makes Karamba ISOG’s first gas project in East Kalimantan to be successfully developed under a fast-track development scheme. “The achievement of first gas at the Karamba Field is a manifestation of ISOG’s commitment to supporting national energy security through the rapid, efficient, and sustainable development of gas resources. We are optimistic that this project will make a real contribution to increasing energy supply and regional economic growth,” said Tang. The Karamba Field holds gas reserves of 64.4 billion cubic feet (Bscf) based on the proven and probable reserves (2P) category. The field development includes the re-entry of the KUD-1 well, the drilling of two new development wells, the construction of a Central Processing Facility (CPF), the construction of a 16.3-kilometre gas pipeline, and other supporting facilities. Prior to reaching the production phase, the KUD-1 well recorded encouraging production test results with a gas flow rate reaching 9.5 MMscfd. These results demonstrate strong reservoir potential and form the basis for optimism regarding the long-term sustainability of production at the Karamba Field. In addition to increasing domestic gas supply, this project also provides added value through the optimisation of existing infrastructure, increased use of local components both in terms of goods and new workforce, as well as the creation of new oil and gas development opportunities in the onshore Kutai Basin.