ASIATODAY.ID, JAKARTA – The Indonesian government through the Ministry of Energy and Mineral Resources has approved the revised plan of development (PoD) I Block Indonesia Deepwater Development (IDD).
With this approval, the plan to increase production from the deep sea field which is currently managed by the Italian oil and gas company, ENI, will be effective until 2027.
“Efforts to increase this can be carried out from the time the PoD was approved and will continue until 2027,” said the Minister of Energy and Mineral Resources of Indonesia, Arifin Tasrif at a working meeting forum with Commission VII of the House of Representatives of the Republic of Indonesia, in Jakarta, Wednesday, 19 June 2024 .
Arifin said that the approval for the field development plan was carried out in a short time since exploration activities were successfully carried out at the Geng North-1 well, North Ganal Block, around 85 kilometers off the coast of East Kalimantan at the end of 2023.
“This is the fastest process for discovering new fields in the Makassar Strait,” he said.
Previously, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) reported that the estimated total investment in developing the IDD Block managed by ENI was around US$14.8 billion.
In detail, the total investment for the development of the northern part of the IDD Block, including Gehem-Geng North, reached around US$ 11.4 billion. Meanwhile, the southern block consisting of Gendalo-Gandang required an investment of around US$3.4 billion. ENI will receive an overall tax of 37.5% currently for the development of the deep sea field that Chevron will release in mid-2023. Initially, the tax imposed for the overall development of the IDD Block was pegged at 44%.
The plan is that the southern side of the IDD Block will be connected to ENI’s Jangkrik floating production unit (FPU) facility. Meanwhile, the selected cooperation contract scheme will continue to use the cost recovery regime for the southern part.
ENI Indonesia Managing Director Roberto Daniele said that his party was committed to accelerating the development process of one of the largest deep sea assets in Indonesia.
“We have submitted the PoD for IDD, and we have also entered into the procurement process, the process is going faster,” said Roberto recently.
Roberto added that his party would cut the time faster than the PoD approval period to get to the final investment decision or FID stage later.
“So far we have also discussed the PoD for Geng North, we were very amazed after the discovery about 5 months ago, the PoD had been discussed with SKK Migas,” he said.
SKK Migas reported IDD gas reserves reaching around 2.67 trillion cubic feet (Tcf) and 66 million barrels of oil (MMbbls). Meanwhile, Geng North’s inplace gas was recently projected to reach 5.3 Tcf with condensate content reaching 400,000 Mbbls. Southern Hub production plateau is planned at the level of 0.7 Bcfd and Northern Hub 1 Bcfd. (ATN)
Follow Us at Google News and WA Channel