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Jakarta Post

Pertamina ships first LNG from Sanga-Sanga block

  • Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Wed, November 14, 2018   /   07:51 am
Pertamina ships first LNG from Sanga-Sanga block Logo of state-owned oil and gas holding company Pertamina (Courtesy of/3dwarehouse.sketchup.com)

State-owned energy holding company Pertamina has shipped the first cargo of liquefied natural gas (LNG) from its recently awarded Sanga-Sanga oil and gas block in East Kalimantan in what has become the first LNG shipment for a unit operated under the gross-split scheme.

Pertamina subsidiary Pertamina Hulu Sanga-Sanga (PHSS) took over the asset from oil and gas company PT Virginia Indonesia Company (VICO), which had operated the block for more than four decades.

PHSS director Andi Wisnu expressed his appreciation to all stakeholders that had helped in the production, commercialization and monetization of LNG from the block.

“We appreciate [the efforts of] all that were involved, starting from the preparation and processing to the LNG shipment from the Badak LNG refinery, which is operated by PT Badak NGL in Bontang, East Kalimantan,” he said. He did not disclose the volume of LNG on the maiden shipment.

The block currently produces around 16,000 barrels of oil equivalent per day (boepd) and 70 million metric standard cubic feet per day (mmscfd) of gas.

The oil and gas blocks of East Kalimantan, including Sanga-Sanga, contribute about 35 percent to national oil and gas production, according to data from the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas).

On Oct 30, Pertamina kicked off operations at its newly awarded East Kalimantan block, run by one of its upstream subsidiaries, PT Pertamina Hulu Kalimantan Timur, by lifting 60,000 barrels of crude oil (bbn)