Indonesia Approves Further Development of Two Offshore Gas Blocks

Indonesia's energy regulator, SKK Migas on Friday, gave green signal to further develop natural gas fields in two offshore blocks, Wall Street Journal has reported.

The two blocks, Jangkrik North East field in the Muara Bakau block and the MBH and MDA fields in the Madura Strait block, will need a combined investment of $1.8 billion, the report said.

The Jangkrik North East field, located east of Kalimantan is operated by Italy’s Eni and is expected to produce 145.5 million standard cubic feet a day of natural gas when it starts production in 2015 or 2016. The gas will be processed into liquefied natural gas at the Bontang LNG facility.

Investment for further development of the field is expected to reach $1.4 billion, SKK Migas said in a statement.

Further development of the MBH and MDA fields, located off Madura island and operated by Husky Energy, will likely require an investment of $397 million to be able to produce 120 mmscf/d of gas in 2015 or 2016, Wall Street said.