Indonesia Energy Corp Ltd (INDO)

[FACT-MASTER]

INDO: Pertamina EP/ South Sumatra

https://www.pertamina.com/id/news-room/news-release/proyek-pertamina-paku-gajah-penuhi-kebutuhan-gas-di-sumbagsel

English version:

The Paku Gajah development project or Paku Gajah Development Project (PGDP), implemented by PT Pertamina EP, as a cooperation contract contractor (KKKS) under the supervision and coordination of SKK Migas

JAKARTA – The Paku Gajah Development Project (PGDP), which is being implemented by PT Pertamina EP, as a cooperation contract contractor (KKKS) under the supervision and coordination of SKK Migas, will meet the huge demand for gas in southern Sumatra (Sumbagsel). tall.

Apart from that, it is also believed that the operation of PGDP will accelerate the monetization of Pertamina EP's assets, so that exploration potential in the Pagardewa, Karangdewa, Prabumenang, Tasim, Pemaat, Kuang Selatan, Lavatera and Pyrethrium structures can be produced economically.

Upstream Director of PT Pertamina (Persero) Syamsu Alam said that Pertamina is always committed to providing maximum contributions to countries and regional governments that have oil and gas potential.

"With full support from all stakeholders, the company's operational activities in searching for and producing oil and gas can run smoothly and energy needs in Indonesia can be met," he said at the inauguration of the PGDP in Pagar Dewa, Muara Enim, South Sumatra, Wednesday (6/12 ).

Present at the inauguration of the PGDP included Head of SKK Migas Amien Sunaryadi, President Director of PT Pertamina EP Nanang Abdul Manaf, Regent of Muara Enim Muzakir Sai Kohar, and Regent of Ogan Komering Ulu Kuryana Azis.

Head of SKK Migas Amien Sunaryadi, representing the Minister of Energy and Mineral Resources (ESDM) in his speech, said the Paku Gajah project was important to guarantee gas supplies for domestic needs.

According to him, the operation of PGDP is expected to encourage economic growth in South Sumatra and create a larger multiplier effect whose benefits can be felt by the community.

"The upstream oil and gas industry is committed to continuing to meet domestic gas needs for the welfare of the people," said Amien.

Meanwhile, President Director of PT Pertamina EP Nanang Abdul Manaf added that PGDP is an integration of existing production facilities, namely Metering Pagardewa, Gas Collecting Station (SPG) Merbau, SP Kuang Existing, and SP PT Perusahaan Gas Negara Tbk (PGN).

PDGP's total production capacity is 70 million cubic feet of gas per day (MMSCFD), consisting of 45 MMSCFD from SPG Paku Gajah and 25 MMSCFD from SPG Kuang.

PGDP project investment reached US$ 145.10 million from the initial projection of US$ 147.53 million. "PGDP has two production facilities, namely SPG Paku Gajah and SPG Kuang, as well as a 12 inch diameter truckline pipeline 23 kilometers long from SPG Paku Gajah to CO2 Removal Existing SPG Merbau," he said.

Nanang also said that gas demand in Southern Sumatra is quite high. Based on data from the Downstream Oil and Gas Regulatory Agency (BPH Migas), the total gas demand in South Sumatra in 2017 reached 1,013.9 MMSCFD. However, the new committed demand is 353.2 MMSCD. Meanwhile, allocated demand was recorded at 330.7 MMSCD.

Apart from that, there is potential demand of around 330 MMSCFD for the needs of power plants managed by PT PLN (Persero) and power plants managed by private companies (independent power producers/IPPs) as well as gas supplies for the city gas network.

"To meet the large gas market needs in South Sumatra and extend the production period (plateau), we are developing oil and gas fields in an integrated manner around the Paku Gajah area by carrying out exploration drilling and PGDP development," he said.

PGDP, which is located in two districts, namely Muara Enim and Ogan Komering Ulu, is managed by PT Pertamina EP Asset II, an operational unit of Pertamina EP. Gas produced from SPG Paku Gajah and SPG Kuang is distributed to PGN consumers and other gas consumers in South Sumatra .

PGDP uses complete production facilities starting from producing natural gas from exploration wells and from PGDP development wells which have been drilled since 2010.

"Several development well drilling has been carried out since 2010 through the put on production (POP) stage and in 2013 continued with development drilling through the plan of development (POD) stage which was approved by SKK Migas in January 2013," said Nanang.

Realized PGDP production is 52.4 MMSCFD (year to date) and condensate is 861 barrels per day (BCPD). Meanwhile, the target in the 2017 RKAP is 45.10 MMSCFD and condensate 806 BCPD.

"We would like to thank all stakeholders such as SKK Migas, South Sumatra Provincial Government, Muara Enim Regency Government and Ogan Komering Ulu Regency Government and work partners who have supported the implementation of this project so that PGPD can be achieved according to targets following the HSSE aspects (health, safety, security, environment)," said Nanang.