Genting gets nod from Indonesia for revision to Kasuri block development plan
KUALA LUMPUR: Genting Oil and Gas Ltd (GOGL) has received a letter from Indonesia’s Special Task Force for Upstream Oil and Gas Business Activities (SKKMigas) concerning the approval from the Ministry of Energy and Mineral Resources of the Republic of Indonesia (MEMR) for revision to the first phase development plan (POD 1) for the Kasuri Block in West Papua.
GOGL is an indirect whollyowned subsidiary of Genting Oil Kasuri Pte Ltd, itself an indirect wholly-owned subsidiary of Genting Bhd (Genting).
In a statement, Genting said the revision is for the Asap, Merah and Kido (AMK) structures which were originally to utilise 1.735 trillion cubic feet (tcf) of gas-initial-in-place (GIIP) in the Roabiba formation in the AMK structures to supply natural gas to a petrochemical plant to be built in Teluk Bintuni, for 20 years.
It said the revision to POD 1 will now utilise 2.674 tcf of GIIP, which will derive from 1.735 tcf of GIIP in POD 1, and another 0.939 tcf of GIIP from additional Merah resources and Steenkool formation.
“The revised POD 1 aims to supply 230 million cubic feet per day (mmcfd) of natural gas to a Floating Liquified Natural Gas plant (FLNG) for 18 years, as well as another supply of 101 mmcfd of natural gas to an Ammonia and Urea (Amurea) plant to be built in West Papua, Indonesia for 17 years.
“The current production sharing contract (PSC) for the Kasuri Block in West Papua will expire in 2038,” it said.
The group said SKKMigas’ letter stated that GOKPL is eligible to apply for the extension of the PSC according to the economic life, in accordance with the applicable regulations.
“These structures are within the concession area for the Kasuri Block, awarded to GOKPL pursuant to a production sharing contract signed in May 2008 between GOKPL and BP MIGAS, the Indonesian oil and gas regulator which had since been succeeded by SKK MIGAS.
“The supply of natural gas to the FLNG and Amurea plant is subject to all necessary approvals being obtained from the Indonesian government,” it said.
In a related development, the group said GOKPL and PT Pupuk Kalimantan Timur (PT Pupuk Kaltim) had entered into a heads of agreement on Feb 8, 2023, setting down the framework for the potential supply of natural gas to an ammonia-urea (amurea) plant to be built in West Papua, Indonesia by PT Pupuk Kaltim.
“PT Pupuk Kaltim, a subsidiary of PT Pupuk Indonesia, has been tasked with the responsibility of carrying out the development of the National Strategic Project of Fakfak Fertiliser Industry Zone, with the construction of an amurea plant in Fakfak, West Papua Province using the feed gas supplied from GOKPL,” it added.