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Jakarta Post

Zaratex to invest $134m for new gas field in Aceh

  • Norman Harsono
    Norman Harsono

    The Jakarta Post

Jakarta   /   Wed, October 30, 2019   /   02:34 pm
Zaratex to invest $134m for new gas field in Aceh Offshore oil site illustration. (Shutterstock/File)

The Energy and Mineral Resources Ministry recently approved for oil and gas company Zaratex to develop a new offshore gas field at Lhokseumawe block in Aceh province, according to a provincial regulatory agency.

The Aceh Upstream Oil and Gas Management Agency (BPMA) said in a statement dated Oct. 16 that Zaratex was set to develop a processing facility with supporting pipeline systems in the Peusangan B gas field, which the company aims to have operational by 2023.

“The [investment] is meant to support the government program to supply gas for the city, for the transportation sector and other sectors such as industries,” said BPMA head Azhari Idris, adding that the company was also working on an environmental impact assessment (Amdal).

BPMA spokesman Radhi Darmansyah said the company would invest up to US$88.1 million in developing the area and another $45.9 million to operate and close the area.

Zaratex, a subsidiary of Dutch-owned but Malaysia-based oil company Pexco Energy, has been wholly operating the Lhokseumawe block since 2005.

Once operational, the new gas field is expected to produce between 14.5 million and 19.4 million cubic square feet per day (mmscfd) in gas for over 13 years.

Production would translate to earnings of US$156.56 million assuming gas prices remain stable at $6.5 per million British Thermal Units (mbtu) and condensate at $65 per barrels of oil (bbl), says BPMA.