Ophir Starts Gas Production from Indonesia Field
Ophir Energy has commenced commercial gas production from the Kerendan field in Indonesia, as per schedule.
“Production started at 3-5mn ft3/d to enable PLN, the Indonesian state electricity distributor, to commission the power plant and transmission system,” UK-based Ophir said September 13 adding that post commissioning, sales will be initially maintained at a restricted volume of 5mn ft3/d (51.7mn m3/yr) at the request of PLN to enable them to meet demand for power in immediate Buntok region.
The transmission line from the power plant to Buntok is complete and the full 290 km transmission line to Tanjung is expected to be completed later this year. Once the transmission line is fully complete, production is expected to increase to 20mn ft3/d, in line with the daily contract quantity. The annual contract quantity is 7.3bn ft3 (207mn m3). The total contracted volume for this first phase of production at Kerendan is 122bn ft3.
PLN power plant (Credit: Ophir Energy)
Ophir said it is discussing an upward adjustment to the contracted gas price and the talks are at an advanced stage; the current contracted gas price is $4.79/mn Btu escalating at 3% per annum.
Ophir holds a 70% operating interest in the Kerendan field, Bangkanai PSC and PT Saka Bangkanai Kalimantan holds a 30% equity interest. The company has three PSCs in Greater Bangkanai, onshore Kalimantan. These include the Kerendan gas field development within the Bangkanai PSC and two adjacent exploration licences, North East Bangkanai and West Bangkanai.
Shardul Sharma