JAKARTA (Rambu Energy) – Mega project Donggi Senoro LNG plant, partly owned by PT Medco Energi International Tbk, is now considered 99 percent complete and will start commissioning soon, a company executive said.
“As for Senoro downstream project is almost complete. We can say it is now 99 percent complete. We are now waiting for commissioning, but the physical development itself has been completed,” said Frila B. Yaman, Medco’s director operation said during an Investor Summit last week.
Meanwhile, the upstream Senoro gas development project, she added, is about 86 percent complete.
The DSLNG plant is located in Banggai Regency, in the Province of Central Sulawesi, and is situated about 25 kilometers south-east of Luwuk, the main town of Banggai Regency. The plant site comprises about a 100 hectares of land along the coast facing the Peling Strait, which provides a deep sea water route from Surabaya and Makassar to Luwuk and Manado.
PT Donggi Senoro LNG is 59.9 percent owned by Sulawesi LNG Development Ltd, 11.1 percent by PT Medco LNG Indonesia, which is 99.01 percent owned by PT Medco Energi Internasional Tbk, and 29 percent by Pertamina Hulu Energi, a wholy owned unit of state oil and gas company PT Pertamina.
Sulawesi LNG Development Ltd is a joint venture company of Mitsubishi Corporation (75 percent) and Korea Gas Corporation or Kogas (25 percent).
DSLNG purchases natural gas from PT Pertamina EP (Matindok area) and PT PHE Tomori Sulawesi, PT Medco E&P Tomori Sulawesi as well as Tomori E&P Limited (UK) (Senoro field).
Frila B. Yaman said that as for Medco’s Libya project, it is now entering Front End Engineering Design (FEED). FEED is undertaken in UK, so the company sent its engineering to UK to finalize the FEED. Once FEED is completed, the company will have an idea how much the cost of the project as well as detailed engineering. FEED is required before construction phase begins.
The Libya project is one among several major projects to be undertaken by Medco over the next three years. Medco’s Finance Director Lany D. Wong said the company will allocate US$1.4 billion in capital expenditure to finance its projects by end 2016. The Capex excludes the Tunisia’s oil-gas block project which was acquired recently.
About US$1.1 billion of the Capex will be allocated to develop domestic oil and gas projects, while the remaining US$300 million will be spent for overseas projects, including to develop projects in Libya, Yemen as well as existing overseas oil and gas projects.
In June, Medco, through its subsidiary, Medco Tunisia Petroleum Limited, signed an acquisition deal for a 100 percent stake in Storm Ventures International (Barbados) Ltd. (SVI) from Storm Ventures International (BVI) Ltd., a subsidiary of Toronto-listed Chinook Energy Inc.
The US$114.03 million acquisition makes Medco the shareholder of a company owning eight participation interests of oil and gas blocks in Tunisia.
SVI owns four exploration blocks, two development blocks and two producing blocks with working contracts of either 30 or 50 years.
Wong said Medco plans to spend US$320 million in capital expenditure to develop its blocks in Tunisia.
These new oil and gas block projects are expected to boost oil production of Medco over the next few years from around 60,000 bopd at present. (RE-RK)