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

McDermott installs Kepodang platform topsides offshore Indonesia

Jan 9, 2015

McDermott International Inc. has completed the installation of a 3,086-ton central processing platform (CPP) topsides at the Kepodang gas field offshore Indonesia.

Otto gets farm-in query on Philippines SC 55

Jan 9, 2015

Otto Energy Ltd. says that PNOC Exploration Co. (PNOC-EC) has expressed an interest in farming into SC 55 for a 15% working interest.

Lundin anticipates spring start-up for Bertam offshore Malaysia

Jan 7, 2015

Lundin Petroleum has allocated $35 million for exploration offshore Malaysia this year.

CNOOC reports new South China Sea gas discovery

Jan 6, 2015

CNOOC Ltd. has made a mid-to-large deepwater natural gas discovery at Lingshui 25-1.

L&T to manage Vasai East expansion offshore India

Dec 30, 2014

ONGC has contracted L&T Hydrocarbon Engineering for additional development services for the Vasai East project.

Trending News

IHS paints gloomy picture for oil prices ahead

Jul 31, 2015

With oil production from the US, Saudi Arabia, Iraq, and to some degree Russia rising in the face of declining prices, and with output from Iran looming on the market, IHS Energy sees another drop in per barrel prices as possible.

Offshore photo of the day

Mexico to postpone deepwater auction, revise bid terms

Jul 31, 2015

Officials with the Mexican government have indicated that it will postpone auctions for deepwater oil exploration and production contracts, and adjust the terms of upcoming tenders, according to reports from Reuters and the Financial Times. 

INPEX to drill offshore Japan in 2016

Jul 31, 2015

The Agency of Natural Resources and Energy of the Ministry of Economy, Trade and Industry of Japan has commissioned INPEX Corp. to drill one exploratory well for its “Heisei 26~28 Domestic Offshore Drilling Program in Japan.” 

Dragados completes giant Mariner field jacket

Jul 31, 2015

The jacket for Statoil’s Mariner project was loaded out recently from Dragados Offshore’s yard in southwest Spain.

  Offshore
Digital Magazine
Look Inside
Cover
Current Issue

Oil & Gas Jobs

Search More Job Listings >>