Contractor Cooperation Contract Husky–CNOOC Madura Limited (HCML) will postpone submitting the extension request for the Madura Strait oil and gas concession contract, known as the Madura Strait PSC, until next year. This plan deviates from the initial target of submission in the first quarter of 2024.
“As we are still refining the plan for submitting the extension request for the Madura Strait oil and gas concession with HCML shareholders,” HCML’s Vice President for Marketing, Legal & Business Support, Wahyudi Sunarya, said on Saturday, April 27, 2024.
Wahyudin said that the contract extension request will include an execution plan for the development of approved marginal fields by upstream oil and gas authorities. Additionally, he added that the extension plan would involve additional advanced exploration activities in the block.
“To add new reserves to the Madura Strait WK, and to contribute to planning new economically viable field developments after the PSC expires in 2032 or when the contract is approved for extension,” he said.
Through long-term development plans, Madura Strait is projected to reach peak gas production by 2027, almost reaching 300 million standard cubic feet per day (MMscfd). Furthermore, by the contract’s end in 2032, production is estimated to reach the level of 200 MMSCFD.
Meanwhile, gas production from the Madura Strait gas field is predicted to be at 100 MMSCFD by 2042. However, Wahyudin could not provide specific details regarding investment plans that may be injected into the post-extension contract until 2042.
With the contract extension, it is expected that the Madura Strait block can maintain a peak gas production rate of around 300 MMSCFD for 5-7 years or even longer.
Previously, the Upstream Oil and Gas Regulatory Task Force (SKK Migas) said it was awaiting the submission of the Madura Strait contract extension request, also known as the Madura Straits PSC. The current contract, which has been in effect 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. Upon the contract’s expiration, the potential gas resources of the Madura Straits PSC will be only a quarter of the current estimations, which are at the trillion cubic feet (TCF) level.
Head of Program and Communication Division of SKK Migas, Hudi Suryodipuro, said pn April 24, 2024 that the potential oil and gas reserves from the HCML-managed block are still prospective for further development. “Based on the 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),” he said.
