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Oil and gas players dedicate 2019 for the long-haul
Third-quarter oil production amounted to 745,000 barrels per day (bpd), down 1 percent from the previous quarter, and 98.68 percent of this year’s 755,000 bpd production target.
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Workers erect a drill rig to bore one of six wells in the Jembaran Tiung Biru (JTB) gas field in the Cepu Block, East Java in October. (Pertamina/Pertamina)
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handful of upstream oil and gas breakthroughs were made this year, which stakeholders hope will increase production in the long term, because prospects remain bleak in the short term as prices, production and investments are posed to fall behind annual targets.
During their last year in office, former energy and mineral resources minister Ignasius Jonan and deputy energy minister Arcandra Tahar oversaw two major breakthroughs in the Sakakemang block in South Sumatra and the Masela block in the Arafura sea.
In February, Spanish energy giant Repsol, along with joint venture partners Malaysia’s Petronas and Japan’s Mitsui Oil Exploration, announced a giant gas discovery at the KBD2X well in the Sakakemang block.
Repsol and the energy ministry said that, based on preliminary estimates, the well had at least 2 trillion cubic feet (tcf) of recoverable resources.
“At 2 tcf, the KBD2X discovery is the largest in Indonesia since ExxonMobil discovered the Cepu oil field [in Central Java] in 2001,” said Andrew Harwood, research director at global energy think tank Wood Mackenzie.
Four months after the discovery, Jonan ended an 18-year-long dispute related to the gas-rich Masela block, when he inked a deal with the block’s Tokyo-based operator, Inpex Corporation, over the development plan of a Liquified Natural Gas (LNG) facility on the site.
“The investment is between US$18 billion and $20 billion with a fair share between the government and the contractor,” said Jonan in a statement.
