Jakarta. In a press statement on Monday (30/04), Saka Energy Indonesia, a subsidiary of the National Gas Company, or PGN, announced the approval of the first phase of development on the Sidayu Field in Pangkah, East Java. The project is expected to be completed by the end of 2019.
The Sidayu Field is a development site with a depth of 15 meters with four planned production wells, located seven kilometers away from the main site in Pangkah. Processed resources will be sent to a production facility through an underwater pipeline.
After successfully exploring Sidayu Field in the first quarter of 2017, additional production facilities will be added, along with additional development wells, with plans having been approved by the Oil and Gas Special Task Force as of October 2017.
After Sidayu, Saka Energy plans to refocus their efforts to West Pangkah, where development plans have been approved and are now waiting on a final investment decision.
A total of Rp 2.4 trillion ($172 million) has been invested in Sidayu and West Pangkah by Saka Energy. The investments are expected to increase production of oil and gas at Pangkah.
The project is expected to contribute Rp 1.2 trillion ($86.4 million) to the Indonesian government.
PGN and Saka Energy are both committed in supporting government-sanctioned explorations in Indonesia, and will continue their programs in Pangkah and South Sesulu for the remainder of 2018.
"These new development projects will provide much needed resources for Indonesia’s budding economy," said Tumbur Parlindungan, Saka Energy’s president director.
"The continuous development of natural resources is important to meet Indonesia’s energy needs," he added.