Seven projects set to begin delivering oil and gas

JAKARTA. Seven ongoing oil and gas developments are expected to be completed and start delivering oil and gas in the second half of this year.

“The projects are mostly gas plants, although a few will also produce condensate,” said Johannes Widjonarko, acting chief of the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas).

The seven projects are expected to offer combined additional production of up to 2,550 barrels of oil per day (bopd) and 401 million standard cubic feet per day (mmscfd) of gas.

Indonesia, a former member of the Organization of the Petroleum Exporting Countries (OPEC), is struggling to maintain its oil production amid depleting fields. 

The country aimed to have oil production reach 818,000 bopd by year’s end, but as of the end of July, oil lifting stood at 788,000 bopd, according to Johannes.

“It is below target, primarily due to unplanned shutdowns between January and March, when bad weather disrupted some operations,” he said, adding that SKKMigas remained optimistic about securing 818,000 bopd by the end of the year, as production had reached 819,000 bopd by Saturday.

Meanwhile, gas output has exceeded its target. As of the end of July, gas output had reached 7,038 mmscfd, already higher than the targeted 6,853 mmscfd by year-end.

Among the projects, delivery from the Kepodang gas field in the Muria block off Central Java will likely be delayed, as the pipeline that will carry the gas from the field is still under development.

The field’s gas was initially scheduled to be transferred to the Tambak Lorok power plant in Central Java through a 200-kilometer pipeline.

The pipeline, also known as Kalija I, was still in development and would be completed in 2015, according to PT Perusahaan Gas Negara’s (PGN) assistant vice president for corporate communications, Irwan Andri Atmanto.

“At this moment in time, the construction of Kalija I is ongoing, covering engineering procurement and construction (EPC). We aim to complete all the construction work in the third quarter of 2015,” Irwan said. 

PGN is collaborating with PT Bakrie & Brothers, which has been awarded the Kalija tender, to develop the pipeline. (Raras Cahyafitri)