Madura Block's MDA-MBH Gas Field Expected to Start Producing in 2018

The MDA-MBH Gas Field project in the Madura Strait Block is targeted for completion by the end of 2018. After that, the field managed by Husky CNOOC Madura Limited (HCML), will produce about 120 million standard cubic feet per day (mmcfd) of natural gas for approximately 11 years.

The Special Task Force for Upstream Oil and Gas Business (SKK Migas)Deputy for Operations Control, Muliawan, said the entire gas output will be distributed to domestic buyers. Petrokimia Gresik will get 85 mmcfd, Perusahaan Listrik Negara (PLN) gets 30 mmcfd, and Pertamina Gas will be allotted 5 mmcfd. (Read: Domestic Gas Absorption Below Contract Value)

This move is consistent with the government's agenda to prioritise domestic needs. "Prioritising gas for domestic use will indirectly help drive and speed up the economic pace, especially for industries outside Java," Muliawan said, reading from a written statement, Tuesday night (9/8).

The pipe-cutting ceremony for MDA-MBH project's first rig was held in Cilegon, Banten, on Tuesday (9/8). Muliawan attended the event along with HCML General Manager Huang Chunlin, Bakrie & Brothers President Director Bobby Gafur Umar, and Timas Suplindo's Vice President for Offshore Tiopan.(Baca: Gresik Pipe Project May Not Get Gas Supply)

The pipe-cutting ceremony marks the start of the construction of the wellhead platform, which will be located in the Madura Strait. In the MBH Field, the platform will be placed 80 meters below sea level, while in the MDA Field, it will be installed 100 meters below the surface.

Timas Suplindo and Bakrie Construction Consortium is constructing the wellhead platform (rig). The construction will take an estimated 17 months, from the engineering detail to the offshore installation.

SKK Migas is committed to help building national capacity in a bid to allow local companies to grow and develop in the upstream oil and gas industry. "However, national companies need to be efficient so they can compete," he said.(Read: Oil-Gas Industry's Local Component Increased; Project Tenders May be Eliminated)

The plan of development (PoD) for the MDA-MBH gas field is the second to be approved by SKK Migas after the BD Field PoD. "There are seven production wells being developed in the MDA-MBH Field," HCML General Manager Huang Chunlin said.