Energy Minister Inaugurates Jangkrik Gas Field

Kutai Kertanegara, E. Kalimantan, (Antara Sumbar) - Energy and Mineral Resources Minister Ignasius Jonan inaugurated a gas production facility of the Jangkrik field at the onshore receiving facility (ORF) area operated by Eni Muara Bakau in the Handil Baru Village, Kutai Kertanegara.

"This work was executed so efficiently, as it was completed six months ahead of its schedule. Earlier, the target was set for four years, but they were able to complete it in 3.5 years. Hence, the budget could be saved," Jonan stated at the inauguration here, Tuesday.

The Jangkrik Floating Production Unit (FPU) will supply gas and condensate to the ORF.

Both units are new facilities being developed for the Jangkrik gas field and have become part of the development of the integrated facility.

Jonan said gas distribution from the field has increased the utility of the Bontang LNG facility, which will eventually make the supply of energy more effective and efficient.

Jangkrik will supply gas to the local domestic market and the LNG export market, thereby contributing significantly to Indonesia's current energy requirements, he explained.

Since May 29, Eni began production from the Jangkrik Development Project in the offshore fields in the deep waters of Indonesia ahead of schedule.

The project comprises the Jangkrik and Jangkrik North East gas fields, located in the Muara Bakau block, Kutei Basin, in the deep waters of Makassar Strait.

Production from 10 deep-water subsea wells connected to the newly built FPU "Jangkrik" has reached 600 million standard cubic feet per day, or equivalent to 100 thousand barrels of oil per day (boed).

The project is considered to be significant to increase the domestic gas supply and achieve the target of natural gas lifting of 1.15 million boed in 2017 and 1.2 million boed in 2018.

The government has targeted an increase in domestic gas consumption, with gas allocation at home reaching 62 percent in 2017.

Jonan said the Jangkrik Gas Field development project has had a multiplier effect, such as the start of manufacturing operations at a processing facility in Karimun that has helped to create employment opportunities.

The project has employed more than a thousand workers, of which 94.5 percent are Indonesian workers.

Development of the integrated oil and gas facility is a testament to the fact that investment in Indonesia's oil and gas upstream industry is viewed as being lucrative.

Eni has operated the Muara Bakau Block since 2002. The first gas revenue was recorded in 2009 from the Jangkrik-1 well.

The Jangkrik North East field is located some 20 kilometers from the Jangkrik field in the same block. It was discovered in 2011 and was integrated in the one plan for development (POD).

The government has agreed to the POD for the Jangkrik field in 2011 and for the Jangkrik North East field in 2013 that covered the integrated development of the Jangkrik Complex Project.

Eni is the operator, with a 55 percent stake in the Muara Bakau PSC through its subsidiary Eni Muara Bakau B.V. The other partners are ENGIE E&P, through its subsidiary GDF SUEZ Exploration Indonesia BV, with a 33.3 percent stake, and PT. Saka Energi Muara Bakau, with a 11.6 percent stake. (*)

Editor: Vicha Faradika