The Upstream Oil and Gas Regulatory Task Force (SKK Migas) is pursuing two strategic projects by Medco E&P Natuna Ltd, namely Forel and Bronang, for onstream production by October this year.
Hudi Suryodipuro, Head of the Program and Communication Division at SKK Migas, revealed that these two Medco projects have recently become a government focus in boosting the national oil and gas lifting in the latter half of this year.
“We have coordinated with Medco and the contractor’s insurance provider for the Floating Production Storage and Offloading (FPSO). The project has started rolling again,” Hudi said in Jakarta on Tuesday, April 23, 2024.
Hudi targets that the project will begin ramping up production in May 2024, while the sail away process of the FPSO facility is targeted to take place in August 2024.
These two projects are estimated to involve an investment of around $265.74 million or approximately Rp4.3 trillion. The Bronang project is expected to increase gas production to 43 million standard cubic feet per day (MMscfd). Meanwhile, the Forel Field is expected to increase domestic oil production by around 10,000 barrels of oil per day (bopd).
As reported earlier, Medco Energi International (MEDC) targets oil and gas production of 145 thousand barrels of oil equivalents per day (mboepd) throughout 2024.
Medco Energi’s President Director, Hilmi Panigoro, said that the oil and gas production guideline for 2024 is 145 mboepd. “The oil and gas production cost is below $10 per equivalent barrel of oil [boe],” Hilmi said on April 2, 2024.
He cited that this guideline is lower than the 2023 production due to contractual reduction of Medco Energi’s participation rights in the PSC Corridor after December 2023, security issues in Yemen, and lower temporary gas demand in Singapore due to low LNG spot prices. In 2023, MEDC recorded oil and gas production of 160 mboepd with a production unit cost of US$8.3 per boe.
