Had Financial Constraints, Medco's Forel-Barang Project Confirmed On Stream This October

JAKARTA - Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto ensured that Medco E&P Natuna Ltd's Forel-Barang project will start on stream in October 2024.

In fact, this project is targeted to operate in 2023 but was hampered by several problems so that on stream should be pushed back this year.

"God willing, October may be on stream. From last year it should have been last year," Dwi told the media when met at the Ministry of Energy and Mineral Resources Building, Wednesday, June 26.

Just so you know, this project has an oil production capacity of 10,000 BOPD and gas of 43 MMSCFD.

Dwi said the obstacle that caused the on stream of this project to resign was the financial problems that Medco faced when the construction of the Floating Storage Production and Offloading (FPSO) facility which was off the coast.

"The problem with the FPSO provider. So the floating processing and storage offshore is financially constrained so they can't finish quickly and must be supported by Medco himself," explained Dwi.

For information, these two projects have a total investment of US$265.74 million or equivalent to Rp4.3 trillion (exchange rate of Rp. 16,424).

Head of the North Sumatra (Sumbagut) SKK Migas Representative, Rikky Rahmat Firdaus said that by 2024, the Riau Islands liquiding target will reach around 17,491 BOPD.

Rikky said, to achieve this target, SKK Migas and Medco EP Natuna have set a massive drilling program. Medco EP Natuna has drilled 8 Ofshore wells, this number exceeds the target set at 5 wells or reaches 160 percent.

It is hoped that from the production facilities of Forel and Bronang, which had been delayed by completion, it could increase production by 10,000 BOPD and 43 MMSCFD in the third quarter of 2024.