Jangkrik Project Remains on Schedule Amid Slump in Oil Prices

KATADATA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) expects the Jangkrik project to begin operations next year. Jangkrik is one of the largest oil and gas deepwater projects in Indonesia in addition to IDD Chevron and Masela Block.

Head of Public Relations of SKK Migas Elan Binatoro said that so far the natural gas project in Jangkrik field in the Muara Bakau block is going according to plan and there have been no major problems despite the slump in oil prices.

(Read: Chevron Delays Development of Two Fields in IDD Project Amid Oil Price Slump)

Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (EMR), IGN Wiratmaja Puja confirmed that about 65 percent of the work on the Jangkrik project has been completed.

Construction of the floating production facility is underway. The upper part is of the facility is being made in Tanjung Balai, Karimun, the floating production, storage and offloading (FPSO) unit is being made in Korea.

Estimated natural gas production from this US$ 4 billion natural gas project in the Makassar Strait is 400 million cubic feet per day (mmscfd). Its condensate production is expected to reach 200 barrels per day. (Read: 13 Oil and GasProjects to Start Commercial Operations This Year)

Last year, the block’s operator, Eni Muara Bakau and its partner GDF Suez Exploration Indonesia signed a gas sales and purchase agreement with Pertamina. Once the project is operational, Pertamina will receive 1.4 million tonnes of LNG for domestic supply.