Indonesia’s eastern provinces have long been known for its abundant reserves of mineral resources, which among others include natural gas. This year alone, natural gas from Papua and Maluku accounts 26,2 percent of the national gas production, reaching 2.323 MMSCFD, which is divided between BP Indonesia from the Tangguh Field, Petrochina International (Bermuda), JOB Pertamina-Petrochina Salawati, Pertamina EP Papua Field, Kalrez, and Citic Seram.
At the moment, there are a total of 46 Oil and Gas Contractors of Cooperation Contracts (KKKS) and Joint Operating Body (JOB) operating in Papua and Maluku, of which 4 are already in production. A further 39 KKKS is currently in the exploration phase, while one other is in developmental stage (Plan of Development have been approved but yet to begin production).
The Head of Maluku and Papua Operation area of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), Enrico CP Ngantung further explains the significance of gas production from the two areas. “From a production point of view, Eastern Indonesia plays a very important role towards the increasing national gas production. Meanwhile from an exploration point of view, it is safe to say that Maluku and Papua is the future of Indonesian gas production, with ever increasing production numbers.
Enrico further added that although there are several KKKS contractors which have yet to find economic reserves of gas to produce, some notable explorations include the Genting oil which has discovered large amounts of gas and petrochina which has found prospective hydrocarbon reserves. These findings have encouraged other KKKS contractors to keep exploring for new gas reserves.
The Regent of Sorong, Stepanus Malak has welcomed this government initiative and has promised to support investors keen to invest in the area. “We will accelerate the process of all necessary permits for free. We all realize that to sustain oil and gas production will require many exploration and drilling, that is why we have decided simplify the process for obtaining permit” explains Malak. (ITC)
Source / Read more: “Eastern Indonesia Accounts for 26,2 Percent of National Gas Production”,17 DECEMBER 2013 (http://www.esdm.go.id/news-archives/oil-and-gas/47-oilandgas/6636-eastern-indonesia-accounts-for-262-percent-of-national-gas-production.html)