President to Inaugurate Oil Projects Worth Rp.13.6 Trillion

Jakarta (Antara Bali) - President Susilo Bambang Yudhoyono is scheduled to inaugurate two oil and gas projects worth Rp13.6 trillion in Balikpapan, East Kalimantan, on Monday.

Acting Head of the Upstream Oil and Gas Regulator (SKK Migas) J Widjonarko said in a press statement here on Sunday that the inauguration will also cover other projects.

The other projects are included in the Master Plan for Acceleration and Expansion of Indonesia's Economic Development (MP3EI).

The two projects that will be inaugurated by the President are the expansion of the Ruby gas field of the Sebuku Block operated by Mubadala Petroleum and the Sisi Nubi 2B project of the Mahakam Block operated by Total E&P Indonesie.

"Total investment of the two projects reaches Rp13.6 trillion. Ruby Gas investment is valued at Rp5.5 trillion while Sisi Nubi 2B is worth Rp8.1 trillion," J Widjonarko said.

He said that the Ruby Gas field had a production capacity of 85 billion British thermal units per day (BBTUD).

All of the gas production will be supplied to PT Pupuk Kalimantan Timor (PKT) fertilizer company to support the government's food resilience program.

The contract between PKT and Mubadala Petroleum will be valid until December 31, 2021.

About 250 billion cubic feet (BCF) will be supplied to domestic market. The agreed price of the gas is US$5.75 per mile mile british thermal units (MMBTU) plus a deciding factor based on the price of ammonia and urea.  

The Sisi Nubi 2B expansion project, located off shore Kutai Kartanegara, East Kalimantan, built two new wellhead platforms, with an integrated pipe network that linked the two platforms.

Based on its development plan, the Sisi Nubi Phase 2 (Phase 2A-2B) added 35 wells with an investment of US$1.033 billion.

"Some US$739 million worth of the project is done in Phase 2B," Operation Control Deputy of SKK Migas Muliawn said.

The project work involved 1,200 workers and 42 ships of various types.

Now, Total E&P Indonesie spends an average US$2.5 billion per annum on the Mahakam Block as part of its consistent commitment to investing in Indonesia. (WDY)