Wednesday, May 29, 2024

New gas reserve of 15.02 million cubic feet discovered in Maluku

Reading Time: 2 minutes
Valina Zahra

Journalist

yan

Editor

Interview

The Upstream Oil and Gas Regulatory Task Force (SKKMigas) and Cooperation Contract Contractor (KKKS) Citic Seram Energy Ltd. has claimed the discovery of a fresh reserve of 15.02 million cubic feet of gas on Seram Island in Maluku province, Antara news agency reported.

The Non-Bula Seram Working Area (WK), where the Lofin-2 (re-entry) exploration well was found, is discovered in Seti village, East Seram district, Central Maluku regency.

Upon conducting a re-entry test on the Lofin-2 exploration well to assess the characteristics and behavior of the reservoir for future development of the Lofin structure, a gas flow of 15.02 million cubic feet of gas per day (mmscfd) was discovered in the main objective located in carbonate rock of the Manusela formation.

“So we carried out a re-test to test and evaluate the potential for hydrocarbons in carbonate rocks of the Manusela formation,” SKKMigas Head of Drilling and Well Treatment Division Surya Widyantoro said in a written statement on February 12, 2023.

Challenging process

The process of discovering gas on Seram Island was quite challenging due to the operational testing of exploratory wells. It took a considerable amount of time, primarily because they are located in a remote area.

Acting Head of SKK Migas’ Program and Communication Division Mohammad Kemal said the discovery of gas reserves on Seram Island has given hope to the task force and its KKKS contractors to continue their large-scale, vigorous and effective exploratory activities.

He added there was still a significant potential for oil reserves on the island. The estimated reserves could be as high as 5 billion barrels.

The operations of SKK Migas are under the government’s control. Meanwhile, KKKS contractors serve as operators under its supervision and regulation. Hence, they are distinct from general private plantation and mining activities.

There are some risks in the exploration of gas including political, geological, price and supply and demand risks. However, the operational cost is the biggest risk. Investopedia.com says that the more onerous the regulation and the more difficult the drill, the more expensive a project becomes.

Valina Zahra

Journalist

yan

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

PT Medco Energi Internasional has announced the divestment of its stake in the oil and gas field Area 47 in Libya to the Libya National Oil Corporation (NOC).
Indonesia has harnessed less than 1 percent of its solar energy potential, lagging significantly behind neighboring countries as fossil fuels continue to dominate
CNGR, a major Chinese company in the nickel processing industry and a key supplier of battery components for US electric car producer Tesla, is aggressively increasing its investments in Indonesia.
PT Freeport Indonesia (PTFI) President Director Tony Wenas has confirmed that the copper smelter in the Java Integrated Industrial Port Estate (JIIPE) area in Gresik, East Java, is on track to start operations by June 2024.
Jakarta, May 27, 2024 − PT Perusahaan Gas Negara (PGN), a gas subholding of State energy company PT Pertamina, has paid off the remaining bonds worth US$396,709,000 in accordance to the maturity date as part of the repayment of the overall bond value of US$1.35 billion issued in 2014 and listed on the Singapore Exchange.
Coordinating Minister for the Economy, Airlangga Hartarto, met with Daisuke Arakawa, a senior executive at Nikkei Inc, in Tokyo on Friday, outlining the Indonesian government’s commitment to energy transition through collaboration with Japan. One key area of cooperation is investment in electric vehicles (EVs).