Amendment of the Sepinggan Eastern PSC contract from the Recovery Cost agreement to be issued, Split Split was signed on December 11, 2018. The POD I revision with the Gross Split issued was allocated on the 18th December 2018. With the approval of Gross Split, it is possible to carry out a more flexible procurement process. From the results of procurement, a Letter of Intent (LOI) is produced as follows: • LOI EPCI-1 was issued to PT Saipem on December 14, 2018 • LOI EP-3 was issued to PT FMC on 14 December 2018 • LOI EPCI-2 LOI was issued to PT Technip Indonesia on December 14, 2018 • LOI EPC-4 LOI was issued for the Consortium of PT Timas Suplindo – Sapura Offshore Sdn. Bhd. December 14, 2018
Merakes gas field discovery, appraisal and reserves
The Merakes field was discovered by the Merakes 1 well, which was drilled in October 2014 in 1,372m of water. The well encountered a 60m gas column within high-quality sandstones of the Pliocene age. Merakes was appraised and tested by the Merakes 2 appraisal well in January 2017. The well was drilled to a depth of 2,732m in 1,269m of water. It encountered a 17m gas column in clean sandstones of the Pliocene age.
Merakes gas field development details
The Merakes gas field will be developed via the drilling of six subsea wells, which are to be tied-back to the Jangkrik floating production unit (FPU) located 35km away through subsea systems and pipelines. Gas produced from the site will be treated at the FPU and then transported through an existing pipeline to the Badak LNG plant located in Bontang, East Kalimantan. The gas field is expected to have a plateau production rate of 60,000 barrels of oil equivalent a day.