Jadestone starts gas sales from Akatara project in Indonesia

Asia Pacific-focused energy company Jadestone Energy has commenced contractual gas sales from the Akatara gas project onshore Indonesia, the company announced on July 31.

Last month, Jadestone Energy announced the mechanical completion of the Akatara gas processing facility and the introduction of reservoir gas into the facility. Since then, raw gas production has ranged between 3-8mn ft³/day, allowing for the commissioning of the facility's systems and the start of condensate production, which has totaled around 4,700 barrels to date.

Following the successful packing of the 17 km export pipeline from the Akatara field, commercial gas sales into the regional trunkline in Sumatra commenced at a rate of about 4mn ft³/day on July 31. This represents approximately 20% of the daily contracted quantity under the Akatara gas sales agreement. LPG production is expected to start soon.

The company expects the full daily contracted quantity of sales gas production within the next two weeks.

The Lemang production sharing contract contains the Akatara gas field development, which was sanctioned in June 2022. The field has been independently estimated to contain 18.7mn barrels of oil equivalent of gross 2C resources.

The company bought a 90% stake in the PSC in 2020 from Mandala Energy. Two years later, Jadestone completed the acquisition of the remaining 10% interest in the project.

The Akatara project will supply gas to local gas-fired power plants while the condensate and LPG will be sold for local residential use. In 2021, Jadestone reached an agreement to sell gas from the Akatara gas field to local utility Pelayanan Listrik Nasional Batam.