13 Oil & Gas projects to go on stream in Indonesia

The oil and gas regulator, SKKMigas, has called on the contractors of production-sharing contracts to pay closer attention to 13 upstream projects expected to go on stream this year.

Elan Biantoro, the regulator’s spokesman, said the new projects are expected to produce a total of 194,121 barrels of oil per day and 954 million metric standard cubic feet of natural gas per day.

Elan highlighted three projects that will get full attention from the regulator.

The first — arguably the most crucial — is the development of Banyu Urip field in East Java.
The field is scheduled to go on stream in the 4h quarter this year with peak production of 165,000 bpd.
Banyu Urip is operated by Mobil Cepu (MCL), part of Exxonmobil.

Production was expected to begin last August but was delayed due to issues such as land acquisition and permits.

Elan noted that the project faced socioeconomic challenges, which caused delays in construction, procurement, and engineering.

“This project needs to be monitored intensively so there will be no more delays,” he said.

The development of Bukit Tua field in East Java is another important project.

Elan urged the field’s contractor to pay special attention to the terms of the sales purchase agreement.
He added that the development of Muriah field in East Java would also play an important role in the country, urging the contractor, Petronas, to stay within schedule in the construction of related gas pipeline.