The Upstream Oil and Gas Regulatory Task Force (SKK Migas) is awaiting the submission of a proposal for the extension of the Madura Strait contract, also known as the Madura Straits PSC.
Initially, the operator of the Madura Straits PSC, Husky-CNOOC Madura Limited (HCML), planned to submit the extension request in the first quarter of 2024. However, HCML is still finalizing its plan for the extension of the oil and gas concession in the Madura Strait up to this point.
“Currently, we are still waiting for the submission of the extension request from HCML. We will follow up with recommendations after evaluation,” Hudi Suryodipuro, Head of the Program and Communication Division of SKK Migas, said on Wednesday, April 24, 2024.
The current contract, which has been in effect for 20 years since 2012, will expire in October 2032. HCML assesses that the concession, covering an area of 2,012.76 square kilometers, remains prospective until 2042. At the end of the contract, the potential gas resources of the Madura Straits PSC are estimated to be only a quarter of the current estimates, which are at the trillion cubic feet (TCF) level.
Hudi said that the potential reserves of oil and gas from HCML’s managed blocks are still prospective for further development.
“Based on the Contractor Partnership Contract (KKKS) report as of January 1, 2023, the potential oil reserves are around 6 million stock barrels (MMSTB) and gas around 1,200 billion standard cubic feet (BSCF),” Hudi said.
As previously reported, HCML is still finalizing its plan to submit an extension request for the Madura Strait oil and gas contract, also known as the Madura Straits PSC.
“This issue is currently being discussed internally by stakeholders in each headquarters,” HCML’s Vice President for Operations, Perkasa Sinagabariang, said on Wednesday, April 24, 2024.
Earlier, Perkasa said late last year that the extension request would include plans for further exploration to increase HCML’s reserves after the concession ends in 2032. He cited that when the contract expires, the potential gas resources of the Madura Straits PSC would be only a quarter of the current estimates, at the level of 2 TCF.
“Of course, if we don’t do anything in 2032 when it expires, maybe the production will be only a quarter of what it is now,” he said.
HCML’s current peak sales gas production is 250 MMscfd (million standard cubic feet per day) and is the largest in East Java and Central Java.
“Of the three HCML fields, namely the BD field, the 2M field (MDA-MBH), and the MAC field, HCML KKKS is the largest gas producer, with its production percentage reaching 30 percent of the total gas production in the East Java region,” Perkasa said.
HCML currently has three main fields that have been producing, namely the BD Field, the 2M Field, and the MAC Field. BD Field production is supported by three main facilities, namely the Offshore Wellhead Platform (offshore Wellhead Platform/WHP), Gas Metering Station (GMS) located in Pasuruan City, and Floating Production, Storage, and Offloading (FPSO) facilities.
Through HCML’s Long-Term Development Plan (LTP), the Madura Straits are projected to reach peak gas production in 2027, nearly approaching 600 MMscfd. Next, when the contract ends in 2032, production is estimated to reach 500 MMscfd.
Meanwhile, gas production from the Straits is predicted to be at the level of 100 MMscfd by 2042. As previously reported, the exploration and exploitation of oil and gas in the Madura Strait were initially operated by Husky Oil Madura Limited (HOML).
