SKKMigas Approves $3.65b in Planned Developments for 18 Oil and Gas Fields

Indonesia's oil production has been declining partly because of lack of incentive for companies to explore new fields. (Antara Photo/Saptono)

By : Arientha Primanita | on 3:58 PM September 07, 2015
Category : Business, Commodities

Jakarta. Indonesian regulators have approved plans to develop 18 oil and gas fields in the country, with total investments of $3.65 billion and projected outcome of $10.55 billion.

The developments were proposed since the start of the year, said Elan Biantoro, a spokesman for upstream oil and gas regulator SKKMigas.

The approved fields include Chevron Pacific Indonesia’s Sumur Gulamo North-01 Block Rokan in Riau province, with total investment of $1.2 million.

Other projects include Pacific Oil and Gas’s Parit Minyak field in Blok Kisaran in North Sumatra, with investment worth $53.5 million, and PHE ONWJ’s Foxtrot field in Block Offshore North West Java (ONWJ) with total investment of $425.5 million.

SKKMigas has also approved the revision of the plan of development for the Tiung Biru-Jambaran field in the Cepu Block, Central Java, with total investment of $2.06 billion.

“We hope for support from all parties so that the planned oil and gas field developments can work in accordance with the schedule,” Elan said in a statement.

He added that SKKMigas had also accepted a revised plan of development proposal for the Abadi field in the Masela Block in Maluku from Japan’s INPEX last week. In the revision, Inpex proposed building a floating facility for liquefied natural gas with processing capacity of up to 7.5 million tons per year.

“We will have intensive discussions so that the approval recommendations can be given as soon as possible to the energy minister,” Elan said.

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