Indonesia sanctions Lengo gas project offshore Java

Offshore staff

SINGAPORE -- Indonesia’s government has approved KrisEnergy’s development plan for the Lengo gasfield in the Bulu production sharing contract (PSC) offshore East Java.

The operator can now pursue formal negotiations for gas sales agreements with potential buyers.

Bulu extends over 697 sq km (269 sq mi) in three separate areas – Bulu A, Bulu B, and Bulu C – in the East Java basin in water depths of 50-60 m (164-197 ft). Lengo, in the Bulu A area, will be produced via four development wells and an unmanned wellhead platform, with a 20-in., 65-km (40-mi) subsea pipeline transporting the gas directly to shore.

KrisEnergy expects production to begin around 24 months after the partners declare a final investment decision, building eventually to 70MMcf/d.

The acreage is adjacent to the company’s East Muriah PSC, which contains the East Lengo gas discovery. A successful outcome from a planed appraisal well could lead to development of East Lengo via a single-well tieback to the Lengo facilities.

KrisEnergy also operates the Sakti PSC, adjacent to the Bulu A area, where earlier this year it completed acquisition of 1,202 km (747 mi) of 2D and 401 sq km (155 sq mi) of 3D seismic.

Chris Gibson-Robinson, director Exploration & Production, said: “This is our first development as the operator in Indonesia and we have been building up our technical and project management competencies in Jakarta to be ready for this moment. When on stream, the Lengo field will bring the group’s production mix to approximately 52% gas versus 48% oil.

“Demand for gas continues to grow strongly across Indonesia and long-term pipeline prices are holding firm despite volatility in the international oil markets. Bulu is the potential aggregation hub for gas into East Java if we are successful in the appraisal of East Lengo and exploration in Sakti.”

KrisEnergy has a 42.5% operated interest in the Bulu PSC in partnership with AWE, PT Satria Energindo, and PT Satria Wijayakusuma.


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