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Genting to spend US$100 million on four development wells at Kasuri Block
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Logo of the Upstream Oil and Gas Business Activities task force (SKKMigas). (Antara/File)
G
enting Oil Kasuri, a subsidiary of Malaysian conglomerate Genting Bhd, is expected to spend around US$100 million to drill four development wells at the Kasuri Block in West Papua.
The Energy and Mineral Resources Ministry is still reviewing the first plan of development (POD I) for the Kasuri Block, which was proposed by Genting on April 21 to the Upstream Oil and Gas Business Activities task force (SKK Migas).
Genting expects to reactivate six exploration wells and drill four development wells, as well as develop production facilities and gas pipeline networks at the block.
Read also: Malaysia’s Genting Oil to revise development plan for Kasuri blockSKK Migas has stated that Genting will need to disburse around $25 million for each development well and install a gas compressor worth $100 million within eight to 10 years after the Kasuri Block is on stream, slated for the end of 2021.
“The approval of the POD I is crucial for Genting Oil so that it can immediately undertake field development activities and the block can be on stream right on schedule,” SKK Migas head Amien Sunaryadi said Monday in a statement.
If everything goes as planned, the Asap, Kido and Merah fields of the Kasuri Block are projected to supply 170 million standard cubic feet of gas per day to a petrochemical factory in Bintuni, West Papua, for a period of 20 years.
The factory, with an investment value of $1.5 billion, will be jointly developed by state-owned fertilizer company PT Pupuk Indonesia and Germany-based industrial services company Ferrostaal. (bbn)
