TEMPO.CO, Jakarta - The Upstream Oil and Gas Special Regulatory Taskforce (SKK Migas) gave a green light for the Madura Strait Block development plan in East Java that is operated by Husky CNOOC Madura Limited (HCML). The development plan was submitted by HCML on June 24 and was approved on July 19.
“This approval produces commitment from Husky-CNOOC Madura Limited to develop the MBF Field in the Madura Strait area with an investment value of US$88 million, or roughly Rp1.3 trillion,” said SKK Migas acting deputy Julius Wiratno in his statement on July 21, Antaranews reported.
According to him the gas reserves at Madura Strait block is currently logged at 38.04 BSCF and the investment wll be used to deepen the two wells; MBF-A1 and MBF-A2. The permit also permits constructions of the wellhead platform, pipelines linking to the MDA-MBH production facilities, and modifying the MDA-MBH production field facility.
The permit will also increase the reserve replacement ratio in July 2021.
Wiratno said the investment will move the economy, mainly in East Java, as the province will obtain additional gas supplies for future uses. “The approval of the Madura Strait block development plan will increase the reserve replacement ratio to 22 percent,” he added.