SKKMigas Approves Revised Development Plan for Tiung Biru, Jambaran Gas Fields

Indonesia’s oil and gas regulator SKKMigas on Monday said it has approved the revised development plan for Tiung Biru and Jambaran fields.

The field is expected to start producing 227 million cubic feet of natural gas per day in the first quarter of 2019. Peak production of 315 million cubic feet is expected in 2020.

According to the plan, six development wells will be drilled, and the processing facilities including their supporting facilities will be constructed. The total investment is projected at $2.056 billion, or around Rp 28 trillion, broken down into $279.5 million for the cost of the wells and $1.777 billion for the production facilities, SKKMigas said.

Gas produced will be entirely supplied to domestic market.

Based on the data of the revised development plan, assuming the price of natural gas at $8 per million British thermal units per day, the proceeds until the expiration of the contract in 2035 will reach $12.97 billion, the regulator said. Of the proceeds, 45.8 percent belongs to the government, 24.5 percent is for the contractors, and 29.7 percent is for cost recovery.

Contractors are PT Pertamina EP Cepu, PT Pertamina EP, ExxonMobil Cepu Ltd., and the Cepu Block PI (Participating Interest) Cooperation Agency.