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Jakarta Post

Medco E&P to begin production at Temelat gas block in South Sumatra next month

  • Norman Harsono
    Norman Harsono

    The Jakarta Post

Jakarta   /   Mon, November 18, 2019   /   04:10 pm
Medco E&P to begin production at Temelat gas block in South Sumatra next month Workers perform a pipeline stress test – a hydrostatic test – at the Temelat gas field in South Sumatra in this file picture. Local energy company Medco E&P began developing the field in 2017 and is expected to complete development next month. (SKK Migas/SKK Migas)

The government expects the Temelat gas field in South Sumatra to begin production in early December, one month behind schedule.

The Upstream Oil and Gas Regulatory Task Force (SKK Migas) said in a statement on Monday that the project, which began development in 2017, was delayed by problems related to land acquisition and opposition from local residents.

SKK Migas projects head Luky Yusgiantoro said the regulatory body had talked with the field’s developer, Jakarta-based oil and gas company Medco E&P, and "forecast the project will be onstream by December 10, 2019.”

He added that the project’s estimated value was US$11.4 million and gas production was expected to hit 10–12 million cubic feet per day (mmscfd).

Both figures are largely unchanged from the initial estimated value of $11 million and expected production rate of at least 10 million mmscfd.

The block is set to serve industrial gas customers including state-owned gas distributor PGN and fertilizer maker Pupuk Sriwidjaja Palembang (Pusri).