Mahakam gas lifting below target

Indonesia’s SKK Migas has said January natural gas liftings from the Mahakam block reached only 87% of the target while oil output stood at 64% of projections, international media reported Thursday.

Mahakam had been expected to produce gas at a rate of about 31.4 mcm (1.11 bcf) per day, but figures showed output of only 27.4 mcm (969 mcf). In 2017, the block produced 35.5 mcm (1.26 bcf) per day.

“Fulfilling this target is very important, especially for natural gas because Mahakam block supplies gas to the Badak LNG plant in Bontang,” spokesman Wisnu Prabawa Taher told Reuters. “If gas supply to the LNG plant is under target, delivery of LNG will not fulfil [the] commitment [to buyers] that has been agreed upon.”

The biggest source of natural gas in Indonesia, the Mahakam block passed from France’s Total and Japan’s Inpex into the state-run firm’s hands in 2018. The block, whose acquisition cost Pertamina USD 590 million, will require about USD 659 million of investment, according to Meidawati, Pertamina’s senior vice-president for strategic planning and operation evaluation. Pertamina plans to work on 57 development wells and 32 workover wells on the block.