Sakakemang Project Completes FEED Tender

Illustration - Natural gas facility PT PGN Tbk. BETWEEN/HO-PT PGN Tbk

After the approval of Plant of Development (POD) I for the Kaliberau Field Revision, the development of the Saka Kemang Project with the Repsol Cooperation Contract Contractor (KKKS) operator continues to progress.

Based on data from the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), until May 28, 2024, the project has completed the basic engineering design for gas processing and CO2 separation in April 2024, and then as of May 24, 2024, it has completed the tender front end engineering design (FEED) with the establishment of PT Synergy Engineering as the winner of the tender.

The implementation of the FEED tender is completed according to the plan in the AFE, namely in the middle of the 2024 Quarter. Therefore, SKK Migas and KKKS Repsol are optimistic that all FEED work will be completed by the end of 2024.

Head of the SKK Migas Program and Communication Division, Hudi D. Suryodipuro, said that the development of the Saka Kemang project was in accordance with the set target.

He hopes that with the development of the Saka Kemang project, which has now entered the FEED tender process, it is hoped that the FEED work will be completed in 2024.

"Since POD I of the Kaliberau Field Revision was approved in connection with the addition of a new scope of work, SKK Migas and Repsol have made real efforts, so now, the progress has been well seen, namely the completion of the FEED tender," said Hudi, quoted on Saturday, June 1.

With the appointment of the winner of the FEED job auction, Repsol has proven the milestone of seriousness and commitment in the implementation of the work where it is hoped that the Sakakemang Field Development can be produced in early 2028.

"For us, with the development of the Saka Kemang project to date, it has shown a commitment from Repsol to continue investing in upstream Indonesia's oil and gas. This is certainly good news in an effort to encourage the use of gas in the block, so that in the future it can increase gas supply to meet national gas needs and support the Government's energy security program," said Hudi.

Hudi said that the positive development of the Saka Kemang project also had a broad meaning, because it was an affirmation of Repsol's commitment to continue investing in Indonesia.

Based on the revised POD I, the Kaliberau field will produce gas reserves of 474.28 BSCF until the end of the contract in 2040 with an overall investment cost of around 631.7 million US dollars consisting of drilling and completion costs of 168.8 million US dollars and production facility costs of 462.9 million US dollars.