Jakarta. Upstream oil and gas regulator SKKMigas has approved revised plans of development for the Tiung Biru and Jambaran gas fields in Central Java, with total investment worth $2.06 billion and projected outcome of nearly $13 billion.
SKKMigas chief Amien Sunaryadi said in a statement that the regulator had handed over the PoD revision approval to the contract holders of the gas fields, Pertamina EP Cepu, Pertamina EP, ExxonMobil Cepu and Blok Cepu PI (participating interest) cooperation board on Monday.
“We aim for the gas fields to start production of 227 million cubic feet of natural gas by the first quarter of 2019 and reach peak production of 315 million cubic feet by 2020,” he said.
Amien said the development plan included six development wells and construction of gas processing and supporting facilities.
The total investment needed in the gas fields is projected at $2.06 billion, comprising $279.5 million for wells and $1.78 billion for production facilities.
Amien said the gas produced from the sites would be for domestic use.
The revised PoD assumes a gas price of $8 per million British thermal units (MMBTU) per day, which would value the output from the fields through the end of the contract in 2035 at $12.97 billion.
Of that figure, the government will get $5.95 billion, the contract holders $3.18 billion, and the rest will go toward cost recovery.
“For the development of the gas fields, the contractors are given investment credit incentives of around 15 percent out of the capital investment cost,” Amien said.