Medco E&P Natuna Ltd (Medco E&P) officially started the first gas flow, or onstream, from the West Belut Project in the South Natuna Sea Block B on Wednesday, September 11, 2024.
The project includes the construction of a wellhead platform with a gas production capacity of 55 million standard cubic feet per day (MMSCFD).
A 12-inch diameter, 12-kilometer-long subsea pipeline connects the West Belut platform to the existing South Belut pipeline. Additionally, the project involves modifications to the Central Processing Platform at North Belut.
Dwi Soetjipto, Head of the Upstream Oil and Gas Regulatory Task Force (SKK Migas), announced that the project, with a total investment of US$84 million (Rp1.3 trillion), is expected to contribute to the upstream oil and gas sector’s multiplier effect.
“The project is also projected to generate US$41.7 million (Rp641.2 billion) in state revenue, offering significant positive impacts for national income,” Dwi said as quoted in a press statement on Wednesday, September 11, 2024.
Discovered at the end of 2020, the West Belut Project has begun production ahead of its initial target of October 2024.
“This achievement demonstrates significant progress in a relatively short time, and I hope it will be followed by other projects,” Dwi said.
The West Belut facility features 100 percent solar-powered, unmanned platforms, showcasing environmentally friendly technology.
Dwi highlighted the solar implementation as an example of the innovation that SKK Migas encourages within the oil and gas industry.
“We hope this initiative will inspire other oil and gas projects in Indonesia,” he said.
The West Belut Project is one of the 15 projects set to commence production this year. SKK Migas reported that eight other projects have already come online in the first half of 2024.
Dwi expressed optimism that all planned projects will be operational by 2024, especially given Indonesia’s current oil challenges.
The total investment required for the 15 projects reaching production in 2024 amounts to US$560 million, with the potential to boost oil and gas output by 31,655 barrels of oil per day, 268 MMSCFD of gas, and 180 metric tons of LPG.
Some of the upstream oil and gas projects that commenced production in the first half of 2024 include:
- Gas SWPG Debottlenecking by Pertamina Hulu Mahakam (April 21, 2024);
- Bekapai Artificial Lift Gas Project by Pertamina Hulu Mahakam (May 24, 2024);
- OPL Main Oil Project by Pertamina Hulu Energi ONWJ (May 29, 2024);
- AFCP Gas Project (June 11, 2024);
- ASDJ-116X Flowline Oil Project by Pertamina Hulu Energi Ogan Kemering (June 16, 2024);
- Peciko 8B Gas Project by Pertamina Hulu Mahakam (June 18, 2024);
- South Sembakung Compressor Facility by JOB PMEP Simenggaris (June 19, 2024);
- Dayung Facility Optimization Gas Project by Medco Grissik (June 30, 2024).
