SKK Migas: Pertamina to Buy Two Gas Cargoes from Bangka Field

Buyers have secured their commitment to purchasing gas from Banga Field in the Rapat Block. One of these buyers is Pertamina.

Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Deputy Chief M.I. Zikrullah said Pertamina would buy two gas cargoes from Bangka this year. “The contract is still being finalised,” he told Katadata at the Energy and Mineral Resources Ministry’s office in Jakarta on Thursday (11/8).

He said Pertamina would only buy two gas cargoes because this field has only just started producing. It is estimated to enter peak production in 2017. (Read: Chevron Explores Possibility of Selling Bangka Field Gas to Pertamina)

In addition, both parties are still discussing whether the gas will be distributed through a pipeline or in the form of liquefied natural gas (LNG). They are still waiting for a decision from the EMR Minister.

If the gas is distributed in the form of LNG, it will be processed at the Bontang Refinery. If it is distributed through a pipeline, then it would depend on the demand for gas in East Kalimantan. They will prioritise the demand for gas in Kalimantan rather than Pertamina.

“Two weeks ago it was confirmed that East Kalimantan would have enough gas from existing contracts until 2017. Maybe in 2018 (gas will be allocated) for East Kalimantan,” said Zikrullah. Based on information gathered by Katadata, 50 mmsfcd of gas from Bangka field will be delivered to the Bontang refinery. (Read: Domestic Gas Usage Still Below Contract Value)

Pertamina’s management has made no comments concerning its purchase of gas from Bangka field. Up until this article was published, Pertamina Vice President of Corporate Communication Wianda Pusponegoro has not responded to Katadata’s WhatsApp message.

Meanwhile, SKK Migas Deputy for Operations Management Muliawan said the Bangka field will start production by the end of this month. “Hopefully by the end of August,” he told Katadata a few days ago.

This project is a part of the Indonesia Deepwater Development (IDD) project operated by Chevron Indonesia Company. Chevron is still finishing the construction of the production facility for this project.

In its design, this facility would have the capacity to produce 115 mmscfd of natural gas and 4,000 barrels per day of condensate. Chevron’s official website states that the Bangka project will be connected to a floating production facility. (Read: Bangka Chevron Project to Start Producing at the End of This Month)

Chevron Indonesia Company has a 62 percent stake in this project. Chevron has drilled two development wells for this deepwater project following the final investment decision launched during the second half of 2014.