JAKARTA, May 4 (Bernama) -- Indonesia’s upstream oil and gas regulator, SKK Migas, has identified 13 oil and gas well prospects in East Kalimantan with estimated oil reserves of nearly one million barrels and gas potential of 11.64 billion cubic feet.
Head of SKK Migas, Djoko Siswanto, said the wells are located in the transmigration area of Samboja in Kutai Kartanegara Regency and would be developed by Pertamina Hulu Sanga Sanga (PHSS), a subsidiary of government-owned oil company Pertamina.
“This is very strategic as oil and gas remain critical for domestic needs, and sourcing new reserves elsewhere is not easy and often costly,” he said according to Antara News Agency on Monday.
Djoko said one of the wells is expected to produce up to 7.3 million cubic feet of gas per day with estimated reserves of 3.6 billion cubic feet.
He noted that based on an assumed gas price of US$7.7 per MMBTU or per unit of energy from natural gas for 2026-2031, and an exchange rate of Rp17,000 to the US dollar, the reserves are valued at about Rp471 billion (US$29 million).
He said the gross revenue from the development is estimated at around Rp355 billion with government revenue projected at around Rp87 billion after tax.
He said drilling is expected to begin next month, adding that PHSS currently manages 79 wells in the Samboja transmigration area.
-- BERNAMA
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