This article first appeared in The Edge Financial Daily, on November 5, 2015.

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has struck oil and gas (O&G) in its Bukit Tua and Kepodang fields in Indonesia.

“Achieving first O&G in the Bukit Tua field and first gas in the Kepodang field are significant milestones for Petronas as they demonstrate our commitment to contribute towards Indonesia’s energy demand and potential growth of the country’s energy sector,” said Petronas country chairman for Indonesia and PC Muriah Ltd and PC Ketapang II Ltd president Hazli Sham Kassim in a statement yesterday.

Located in the Ketapang block, 35km north of the coast of Madura Island, East Java, the Bukit Tua field is an integrated O&G project and is expected to produce 20,000 barrels of oil per day and up to 50 million standard cu ft per day (mmscfd) of gas. Oil from the field will be exported from a floating production and storage offloading facility, while gas will be transported through a 110km export pipeline to the onshore receiving facility in Gresik.

Kepodang field at Muriah block is located 180km northeast of Semarang in central Java and is expected to deliver 116 mmscfd of gas. Petronas said both fields are expected to contribute towards fulfilling the energy demand of the country, particularly in east and central Java.

Under the production-sharing contracts for Ketapang and Muriah blocks, governed by Indonesia’s upstream O&G regulator SKK Migas, Petronas through its subsidiaries holds an 80% equity interest in both projects. The remaining 20% is held by PT Saka Ketapang Perdana and Saka Energi Muriah Ltd.