Genting O&G unit gets nod to develop gas project
Indonesia gives green light for first phase plan of development
KUALA LUMPUR: Genting Bhd said one of its units has received the approval from the Indonesian government to develop gas production infrastructure in West Papua.
Genting Oil Kasuri Pte Ltd (GOKPL) has received approval for a first phase plan of development for the Asap, Merah and Kido structures.
“The is a significant milestone for the Genting Group,” said Genting Oil & Gas Ltd CEO T.S. Ong. GOKPL is a wholly-owned indirect subsidiary of Genting O&G.
This first phase plan of development was the culmination of extensive drilling and seismic activities in the Kasturi block over a number of years.
The filing said this first phase plan of development will potentially supply 1.7 trillion cubic feet (tcf) of gas reserves in the Asap, Merah and Kido structures.
He said the plan is to develop the Kasuri block in phases. GOKPL will commence with front end engineering design for the gas pipelines, gas gathering stations, gas processing plant and other facilities in order to pro- duce the 1.7 trillion cubic feet of gas.
“GOKPL plans to supply 170 million cubic feet per day of natural gas for 20 years to a petrochemical plant to be built in the Teluk Bintuni area,” Genting Bhd said in a statement.
The production sharing contract (PSC) for the Kasuri concession ends in 2038.
The filing said GOKPL will be able to contribute to the Indonesian government’s plan to develop West Papua’s petrochemical Industry.
GOKPL plans to supply 170 million cubic feet per day (“mmscfd”) of natural gas for 20 years to a petrochemical plant to be built in the Teluk Bintuni area, subject to Indonesian approval, the filing said.
Genting O&G is also discussing with a Chinese state-owned enterprise to supply gas from this first phase of development. In addition to the 1.7 trillion cubic feet to be had from this first phase plan of development, the Kasuri Block has potential for further development as more than 10 prospective structures have been identified, of which only three – Asap, Merah and Kido – are being planned for development in this initial phase.
Other remaining structures also hold multiple trillion cubic feet of gas resources but will be explored in the future, the filing said.
Besides these various remaining structures, the Kasuri block also has multiple-stacked gas-bearing formations.
The development of Asap, Merah and Kido involves only one of six identified gas-bearing formations.
There are several other formations, and if proven to be gas bearing, will “increase our Kasuri Block gas resources by many times over,” Ong said.
He also said future exploration can be done to prolong the production life of the facilities by raising the petrol chemical plant capacity but this will be a variation from the first phase of plan development operations.
Another way is a new plan of development involving liquefied natural gas facilities, the filing said.