Written statement to the media
PT Saka Energi Indonesia (“PGN Saka”) have sanctioned the first phase of the Sidayu field development in Pangkah PSC, East Java, which is expected to complete and ramp up production by the end 2019.
The Sidayu field is a shallow (approximately 15 meters) water depth development with four planned producing wells, located approximately seven kilometers away from the Main Pangkah field, whose output will be connected to the existing production facilities via subsea pipeline. After the successful exploration program in Sidayu in early 2017, the Plan of Development program in Sidayu will build two additional production platforms and a few development wells. The POD has been approved by the authority of Government Indonesia (SKKMIGAS) by end of October 2017.
Following Sidayu, PGN Saka will develop the West Pangkah field, whose Plan of Development (POD) has been obtained and is in the middle of Final Investment Decision (FID) process.
PGN Saka puts USD 175 million investment to develop Sidayu and West Pangkah. Both fields are expected to increase production of Pangkah PSC up to 12,500 BOPD and 90 MMSCFD. The projects will contribute USD 88 million to the Government of Indonesia.
Consistent with its commitment to support the Government’s program to increase exploration activities in Indonesia, PGN Saka will also continue its exploration programs in the Pangkah PSC and South Sesulu PSC in 2018. The program will cover subsequent exploration drilling and testing of two prospects, the Tambakboyo structure in Pangkah PSC and the West SIS-A structure in South Sesulu PSC.
“These new development projects will produce the much needed energy for Indonesia’s thriving economy,” said Tumbur Parlindungan, President Director of PGN Saka. “This development supports. the country’s imminent need of increasing domestic gas supply.
”Both Pangkah PSC and South Sesulu PSC are operated by PGN Saka with 100% working interest.