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SKK Migas eyes output boost after ‘giant’ gas discovery
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Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) head Dwi Soetjipto turns a handle on a gas pipe at a gas network installation in Gunung Sari Ulu, Balikpapan, East Kalimantan, in this undated file photo, as then-Balikpapan Mayor Rizal Effendi helps him. (The Jakarta Post/N. Adri)
T
he Upstream Oil and Gas Regulatory Task Force (SKK Migas) has announced the discovery of additional gas reserves in the South Andaman Sea that it claims could be among the biggest in the world.
The United Arab Emirates' Mubadala Energy discovered the additional reserves through the Layaran-1 exploration well in the South Andaman Block, located some 100 kilometers off northern Sumatra. Mubadala said the discovery could contain more than 6 trillion cubic feet of gas.
“This [discovery] is not just a significant development for Mubadala Energy but also serves as a historical milestone for Indonesia’s energy security,” Mubadala Energy CEO Mansoor Mohammed Al Hamed said in a statement on Tuesday.
SKK Migas head Dwi Soetjipto lauded the South Andaman Sea discovery, adding that it was the first time the country had made two giant gas discoveries in the same year.
The other discovery, made in October of this year, was at the Geng North-1 well in the North Ganal Working Area in East Kalimantan, with an estimated 5 trillion cubic feet of gas in place.
“We are optimistic that international oil companies will reconsider Indonesia as a destination for their portfolio investment. Consecutive giant discoveries will hopefully become a game changer in the national upstream oil and gas industry,” said Dwi in a statement on Tuesday.
Read also: RI hopes new gas discoveries could add 1.2m tonnes to local LPG production
