Sakakemang Block Contractor to Develop New Production Strategies

The Indonesian government has approved the Plan of Development (POD) for the Sakakemang Block in Musi Banyuasin Regency in South Sumatra. This latest POD includes the implementation of carbon capture and storage (CCS) facilities, along with changes in production levels and gas reserves. "For CCS, the injected carbon is located in the Corridor Block operated by Medco," says Benny Lubiantara, Deputy Planning of the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas), on Jan 12.

In the latest POD, Repsol, as the oil and gas contractor (KKKS) of the Sakakemang Block, has set an increase in production from 60 million metric standard cubic feet per day (MMSCFD) to 80 MMSCFD with the duration extended from eight to twelve years. The reserves of the Sakakemang Block have also changed from 460 billion cubic feet (BCF) to 474 BCF. SKK Migas Head Dwi Soetjipto stated that the contract changes proposed by Repsol were due to the decrease in gas reserves, which were previously estimated to reach 1 trillion cubic feet (TCF).