Government to Allocate Gas from Jangkrik Field to Batam Power Plant
The government will allocate natural gas from the Jangkrik oil and gas field at the Muara Bakau Block to fuel the power plant in Batam. The move is part of the strategy to accelerate the natural gas project managed by Italian-based oil and gas company Eni
Acting Energy and Mineral Resources (EMR) Minister Luhut Binsar Panjaitan said that the gas produced from the field could supply a 350 megawatt (MW) power plant in Batam. “We will coordinate. Next week, the State Electricity Company (PLN) and the Director General of Electricity will discuss the matter,” Luhut said at the EMR Ministry office on Thursday, August 18, 2016.
Last year, Eni Muara Bakau BV and its partner signed a gas sales and purchase agreement with state-owned oil and gas company Pertamina. Pertamina will receive 1.4 million tons of liquefied natural gas for domestic supply once the project enters the operation phase. (Read: Oil Prices Drop, Jangkrik Field Project Goes On Stream on Schedule)
The Jangkrik project is currently in the construction phase and is scheduled to begin production in the third quarter of 2017. The Jangkrik Field will be capable of producing 450 million standard cubic feet per day (mmscfd) of natural gas, and 200 barrels of oil and oil condensate per day.
Construction of the floating production and offloading (FPO) ship for the Jangkrik Field and North East Jangkrik Field has been completed. The FPO ship is capable of storing around 450 mmscfd of natural gas and 4,000 barrels of oil and oil condensate per day.
The FPO ship, which is the largest to be built under President Joko Widodo’s administration, is 200 metres long, 46 metres wide, and 15 metres high. The ship will be officially launched in October this year. (Also read: Facilities Completed, Jangkrik Field Production Went Ahead of Target)
The Jangkrik project is located in the Muara Bakau Block, in the Makassar Strait, around 100 kilometres east of Balikpapan. The joint contract for the Muara Bakau Work Area was signed on 30 December 2002, and the operator is Eni Muara Bakau. The Jangkrik field was later discovered in 2009.
Eni Muara Bakau is the operator of the work area with a 55 percent share of management rights. Other partners in the Muara Bakau work area are GDF Suez Exploration Indonesia, with 33.3 percent share of management rights, and Saka Energi Muara Bakau with 11.7 percent share of management rights. (Also read: Four Oil and Gas Megaproject Contributes to High Investment)
The project covers two oil and gas fields: the Jangkrik Field and the North East Jangkrik Field. At a depth of 400 metres below sea level, these fields were among Indonesia’s first offshore natural gas projects.
