Stay Connected

Kangean Oil and Gas development gets $300-million boost

Offshore staff

TOKYO -- Kangean Finance Co., the Japan Bank for International Cooperation (JBIC), the international wing of the Japan Finance Corp., and the Bank of Tokyo-Mitsubishi UFJ (BTMU) have signed a $300-million syndicated credit facility for the Kangean Oil and Gas development project.

JBIC provides a credit facility of $180 million to the project, while BTMU provides a remaining facility of $120 million. The funds from this facility will be used for several development projects in the Kangean PSC. Natural gas from Kangean will be delivered to the Indonesian domestic market via pipelines. By developing these projects, Mitsubishi will help provide a stable gas supply in Indonesia, and by extension, stable LNG exports to Japan, the company says.

Mitsubishi is also planning the Tangguh LNG project and Donggi-Senoro LNG project, which will supply a large amount of LNG to Japan, and help expand oil and gas production in Indonesia.

The Kangean PSC is located offshore East Java and comprises an area of about 4,500 sq km (1,737 sq mi). It is jointly owned by EMP (50%), JAPEX (25%), and MC (25% through its investment in Energi Mega Pratama Inc.).

While production is already under way in the Pagerungan gas field and the Sepanjang Island oil field, development work in the Kangean PSC is also ongoing in the TSB gas field and Pagerunagan Utara (PUO) oil field. Production in these fields is expected to begin by 2011.

The average oil and gas production rate in 2008 was about 6,300 boe/d, but the ongoing development should raise this to 60,000 by 2011.

07/29/2009

Related Articles

CEPSA agrees to Coastal Energy takeover

Nov 19, 2013

Spanish oil company CEPSA has agreed to acquire Coastal Energy via a share purchase.

Cendor, Greater Stella Area FPSOs nearing completion

Nov 18, 2013

Petrofac expects the FPSO for its Cendor Phase 2 development in block PM304 offshore Malaysia to arrive during the first half of 2014.

Trending News

Offshore Photo of the Day

Ruling clears Dolphin to work in Russian Kara Sea

Oct 1, 2014

Dolphin has received confirmation from the Export Control Division of the Norwegian Foreign Department that the recently announced contract in the Kara Sea is not subject to the current trade restrictive measures against Russia.

CHI awarded offshore GoM helicopter contract

Oct 1, 2014

CHI Aviation has won a five-year contract to provide search and rescue services, and helicopter emergency medical services (HEMS) using a Sikorsky S-92 for a major oil and gas producer in the Gulf of Mexico.

Deep Sea Mooring opens base in Australia

Oct 1, 2014

Deep Sea Mooring, a provider of mooring solutions, is expanding its international footprint with the opening of a new office in Perth, Australia. The facility, which will officially open Oct. 8, will provide sales and technical support to customers across Australasia.

Atkins acquires Houston Offshore Engineering

Oct 1, 2014

WS Atkins plc has acquired Houston Offshore Engineering LLC, an oil and gas offshore engineering business based in Houston, for $73 million (£45 million).

  Offshore
Digital Magazine
Look Inside
Cover
Current Issue

Oil & Gas Jobs

View more Job Listings >>