Jakarta, CNBC Indonesia – The Ministry of Energy and Mineral Resources (ESDM) noted that there was a significant increase in gas production in the Merakes Field development project in the Working Area (WK) or the East Sepinggan Block.
The increase in gas production even jumped from initially only 90 million standard cubic feet per day (MMSCFD) to 790 MMSCFD. The Merakes field is operated by an investor from Italy, ENI East Sepinggan.
ESDM Minister Arifin Tasrif said the increase in gas production was quite good news for national lifting gas production. This is because the increase in production from the Merakes Field can revive several trains at the Bontang Liquefied Natural Gas (LNG) Refinery which had died.
“Good news, ENI Merakes produced 90 MMSCFD yesterday, increased to 790 MMSCFD, later the LNG in Bontang can live again,” said Arifin when met at the Ministry of Energy and Mineral Resources Building, Friday (24/2/2023).
The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) together with gas producers in East Kalimantan and Badak LNG signed a gas processing agreement at the Bontang LNG Refinery aka Bontang Processing Agreement (BPA) on Monday (13/02/2023) .
With this agreement, the processing of natural gas into liquefied natural gas (Liquefied Natural Gas/LNG) and Liquefied Petroleum Gas (LPG) from various oil and gas producers in East Kalimantan can be processed at the Bontang LNG Plant and ultimately have better legal certainty.
Present at the signing was the Head of SKK Migas Dwi Soetjipto, along with SKK Migas Management, Main Director of Pertamina Nicke Widyawati, Main Director of Pertamina Hulu Energi Wiko Migantoro and President Director of Badak LNG Gema Iriandus Pahalawan, Highest Leaders of KKKS PHM, PHKT, PHSS, ENI Muara Bakau , ENI East Sepinggan and Chevron Rapak.
In his remarks, the Head of SKK Migas, Dwi Soetjipto, expressed his appreciation to all parties, especially Pertamina, which has provided support to Badak LNG for the signing of this agreement.
“The cooperation and good intentions that have been shown so far. With this good cooperation, finally there is an official underlying document regarding gas processing activities at the Badak LNG Plant as a follow-up to the Minister of Finance’s determination,” said Dwi, as quoted from an official statement. SKK Migas, Monday (13/02/2023).
Dwi added, with the signing of this agreement, it could not only become a legal umbrella for the parties, but could also provide investment certainty, especially in operational implementation, as well as implementation of the principles of good upstream oil and gas governance.
According to Dwi, the Badak LNG Refinery (Bontang) plays a very crucial role in efforts to achieve national gas lifting, where in 2022 around 41% of the national LNG production volume or 81 cargoes will be processed at the Badak LNG Refinery.
From the sale of LNG, it was able to generate state revenue of US$ 2.76 billion or around Rp 41 trillion.
On this occasion, Dwi also asked Badak LNG to make efficient efforts to use gas (own use) for LNG plant operations, so that state revenues can be further optimized.
(wia)
