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SKK Migas approves $282m plan for Repsol in gas-rich Kaliberau field
The field holds an estimated 2 trillion cubic feet of recoverable resources, according to initial estimates announced in 2019.
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Repsol's KBD-2X well in the Kaliberau field, Sakakemang block, South Sumatra is pictured. The block is jointly operated by Repsol, Malaysia's Petronas and Japan's Mitsui Oil Exploration. (Courtesy of SKK Migas/-)
T
he Upstream Oil and Gas Special Regulatory Task Force (SKK Migas) has approved Spain-based Repsol’s first plan of development (PoD) worth US$282 million in the gas-rich Kaliberau field in the Sakakemang block, South Sumatra.
SKK Migas said in a statement on Dec. 30 that the plan, approved on Dec. 29, entailed re-drilling the lucrative KBD-2X well, drilling one new production well and building new infrastructure, including a pipeline to the Grissik central gas plant in the neighboring Corridor block.
Read also: Govt’s flexible oil and gas contract choice ‘positive’ for investment: Analyst
“The [company] is expected to immediately execute the plan to start production as soon as possible,” said SKK Migas spokeswoman Susana Kurniasih.
The field holds an estimated 2 trillion cubic feet of recoverable resources, according to initial estimates announced in 2019, which crowned it Indonesia’s biggest gas discovery in almost two decades after ExxonMobil’s discovery of the Cepu oil field in Central Java in 2001.
The field plays an important role in realizing the government’s ambition of doubling domestic gas production over the decade and building new gas infrastructure such that Indonesia becomes a major Asia Pacific gas exporter by 2030.
The task force expects Kaliberau field to sell 287,70 billion standard cubic feet (bscf) of natural gas and 0.17 million stock tank barrels (mmstb) of condensate throughout its economical lifespan until 2038. The total reserves are estimated at 445.10 bscf.
The field’s production rate is expected to peak at 85 million standard cubic feet per day (mmscfd) for natural gas and 34 barrels condensate per day (bcpd).
Read also: Weak domestic demand, gas infrastructure hamper 2030 SKK Migas goal
Susana explained that building the pipeline was part of a bigger plan in "monetizing gas fields near existing gas distribution infrastructure to meet domestic gas demand quickly and accurately."
Experts have said that poor gas infrastructure had limited Indonesia's gas demand and thus, limited investors' appetites to explore new gas reserves.
Editor's note: This article has been revised to state that the project value is US$282 million based on a revision provided by the SKK Migas.
