JAKARTA - Energy Equity Epic (Sengkang) Pty.Ltd., Set a high target for the production of the Sengkang Block after the Ministry of Energy and Mineral Resources (ESDM) was determined to continue management in the block entering South Sulawesi Province after the contract expired in 2022.
Unmitigated, Energy Equity has planned a threefold increase in production from current production conditions.
Andi Riyanto, President Director of Energy Equity Epic (Sengkang) Pty. Ltd., said that the average production of the Sengkang Block currently reaches 60 million cubic feet per day (MMSCFD) of gas.
"The target can be up to 100-200 MMSCFD in stages over five years (starting from 2022)," Andi said at the Ministry of Energy and Mineral Resources, Jakarta, Tuesday (11/12).
According to Andi, the increase in production will be carried out gradually and will reach a peak of 200 MMSCFD.The gas produced will certainly be distributed to meet the electricity needs of the PT PLN (Persero) power plant in the vicinity of South Sulawesi.
In the future when production can increase, there will be changes in the pattern of gas distribution. Energy Equity will market gas in the form of Liquefied Natural Gas (LNG).
Andi said that LNG marketing is in accordance with the wishes of the South Sulawesi Provincial Government who want to ensure that the power plant gets gas allocation.
"LNG is marketed in South Sulawesi in accordance with the wishes of the Governor, utilizing gas for the interests of South Sulawesi. This gas likes to not like the biggest consumers of electricity, only industries such as petrochemicals, but there is no such thing in Sulsel, "said Andi.
The Sengkang Block has a working area of 2,925.23 km2 with a contract period up to 24 October 2022. After the new contract is signed, the contract period increases for 20 years using a gross split production sharing contract (PSC) scheme. The contractor will get a profit share of 51% and the other 49% for the government.
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Based on the study of Energy Equity, the Sengkang Block has proven gas reserves of 800 BCF and has resources reaching 3-4 TCF. But with the existence of the Definite Work Commitment (KKP) of US $ 88 million agreed upon, the company is optimistic that it can increase the amount of reserves.
"Reserves can be up to 3-4 TCF, we will have to explore for the first five years," Andi said.
In carrying out the new gas marketing scheme into LNG, Energy Equity will work with other companies to carry out regasification. Until now the talks have been conducted with PT Perusda Sulsel.
"Regas are not included. we only sell gas. Later on, transportation, storage tanks, please other investors, there have been (discussions) with Perusda Sulsel, "said Andi. (RI)
