The gas project managed by Genting Oil Kasuri Pte Ltd (GOKPL) in the Kasuri Block, West Papua, has officially obtained national strategic project (PSN) status earlier this year.
“There is a new PSN project that has been approved, namely Asap Kido Merah, Genting Oil Kasuri,” Upstream Oil and Gas Regulatory Agency (SKK Migas) Head Dwi Soetjipto told a media conference in Jakarta on Friday, January 12, 2024.
The gas block, operated by GOKPL, an entity of the Genting Group controlled by Malaysian tycoon and casino resort entrepreneur Lim Kok Thay, is targeted to be operational in the fourth quarter of 2025 through a floating liquefied natural gas (FLNG) facility. The project, known as Asap Kido Merah, had faced delays since its management rights were acquired in 2008.
Dwi estimated that the field could produce up to 330 million standard cubic feet per day (MMscfd) of gas. The new PSN project is expected to require an investment of approximately US$3.37 billion, equivalent to Rp51.16 trillion.
“Currently, the progress of the head of agreement (HoA), gas sales agreement with PT Pupuk Kalimantan Timur (PKT), and front end engineering design (FEED) updates have been completed 100 percent. This is already underway in West Papua,” Dwi said.
Earlier, the Ministry of Energy and Mineral Resources (ESDM) had approved the revision of the plan of development (PoD) I for the Asap, Kido, and Merah fields in the Kasuri Block in early February 2023.
With this approval, the gas in place in the working area, previously identified at 1,735 billion standard cubic feet per day (Bscfd), increases to 2,673.7 Bscfd. Meanwhile, the potential reserves rise from 1,031.33 Bscfd to 2,244.45 Bbscfd.
Following the PoD I revision, GOKPL signed a head of agreement (HoA) with PKT before finalizing the gas sales agreement (GSA). GOKPL plans to supply 102 Billion British thermal unit per day (Bbtud) of gas for the production of 2,500 metric tons per day (mtpd) of ammonia and 3,500 mtpd of urea. The plant will be constructed by Pupuk Kaltim with an investment of around US$1.5 billion.
ESDM Minister Arifin Tasrif said gas production from the Kasuri Block would be directed to meet the increased demand from the fertilizer industry in the Papua region. “The production from this gas field will be allocated to build a fertilizer plant in Papua and construct an LNG plant,” said Arifin.
