Repsol’s Sakakemang to Produce 85 MMscfd: Can Gas Prices Go Down?

By Editorial Team 26/10/2020
Summary

Repsol SA as the operator of Sakakemang Block has stated in the Plan of Development (PoD) of the project’s Phase I that it can only produce 85 million cubic feet per day (MMscfd) of natural gas. "Now, the PoD of Phase I is being discussed with the Energy and Mineral Resources Ministry for approval," the head of the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas), Dwi Soetjipto, revealed in a press conference on Friday (10/23).

Dwi hoped that such a large production would make the gas price from the Sakakemang Block remain affordable and follow the special gas ceiling price the government set for seven industrial and electricity sectors at US$6 per MMBTU. "With the 85 MMscfd-production of the Sakakemang Block, we will mix the industrial gas price limit according to the Energy and Mineral Resources Ministerial Regulation No. 8/2020 and the price applied to power plants in Rokan," he explained.

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