Sampang partners offshore Indonesia commission production-boosting compressor

A compressor is being installed at the Grati gas plant onshore Java that receives production from the offshore Sampang PSC in the Madura Strait.

Cue Energy, a partner to operator Medco Energi Sampang, said in an Aug. 22 results update that the work should be completed during second-quarter 2026.

The new facility should reduce wellhead pressure and enable improved gas recovery from the Oyong and Wortel fields.

Medco also remains in discussions with the Indonesian government concerning potential fiscal incentives for the offshore Paus Biru development and a proposed extension of the Sampang PSC beyond the current expiry date in December 2027.

However, Singapore Petroleum Sampang (SP Sampang) has notified Medco and Cue that it will not continue as a co-venturer in the PSC beyond December 2027 or in the Paus Biru development.

There, plans include drilling a single gas well, installing a wellhead platform and constructing a 27-km subsea pipeline that would connect production from the well to existing infrastructure at the Oyong Field.

Subject to final approvals, first gas from Paus Biru should flow in 2027, at rates between 20 MMcf/d to 25 MMcf/d.