Peusungan B Gas Field Development Plan

The Ministry of Energy and Mineral Resources (ESDM) approved the first development plan (POD I) of the Peusangan B Gas Field, Lhokseumawe Block, off the Lhokseumawe coast operated by the Cooperation Contract Contractor (CCC) Zaratex N.V.

The gas field is located about 7 km off Lhokseumawe Beach and is targeted to start production in early 2023. The gas field is the first oil and gas field to be approved for development after the issuance of Government Regulation (PP) No. 23 of 2015 concerning Collaborative Management of Natural Oil and Gas Resources Earth in Aceh and the formation of BPMA.

After POD I was approved, Zaratex N.V, carried out a series of preparatory activities including the completion of an Environmental Impact Assessment (EIA) and engineering design preparation.

In addition, a subsidiary of Pexco Energy is making other preparations to support the construction of offshore platforms and the installation of 7 km of underwater gas pipelines and the construction of gas separator facilities on land equipped with CO2 removal and gas dryers.

The development of the Peusangan B gas field supports government programs in the context of supplying natural gas, including gas for households, gas fuel for road transportation, and other needs such as for industry.

As regulated in the law relating to oil and gas production, the Aceh Regional Government will get a minimum participating interest of 10 percent through a Regional-Owned Enterprise (BUMD).

For the development of Peusangan B Field, the state will get a share of 35.36% or around US $ 156.55 million assuming a gas price of US $ 6.5 / MMbtu (flat) and an assumption of an average condensate price of US $ 65 / barrel.