Oil & Gas

07 Jun 2024

Jadestone Nears First Gas at Indonesian Gas Development

07 Jun 2024  by upstreamonline   

Asia Pacific-focused independent Jadestone Energy is on the home straight for its Akatara gas development project onshore Indonesia.

The Akatara gas processing facility is nearing mechanical completion, where all components and systems will have been constructed, installed and tested.

The project focus is now on the final commissioning of the plant ahead of introducing wellhead gas. Akatara remains on track to introduce gas into the facility in approximately two weeks’ time, and for commercial gas, liquid petroleum gas (LPG) and condensate sales following shortly thereafter, the operator said on Thursday.

Meanwhile, the workover campaign on the five existing Akatara wells which will provide gas to the facility has been successfully completed, flowing at an aggregate rate of 54 million cubic feet per day – more than double the approximate 25 MMcfd of raw feed gas required under the gas sales agreement. Also, the 17-kilometre pipeline that will deliver gas into the regional gas trunkline has been successfully tested and is now ready to receive Akatara’s gas.

Jadestone anticipates that the Akatara field will deliver gross plateau production of approximately 6100 barrels of oil equivalent per day based on an estimated gas production rate of 18.8 million cubic feet per day plus associated condensate and LPG, for a duration of seven years.

The Singapore-headquartered operator a gas sales agreement with Indonesia’s Pelayanan Listrik Nasional Batam (PLN) based on a daily contract quantity (DCQ) of 20.5 billion British thermal units per day at a price of $5.6 per million British thermal units.

The annual take-or-pay quantity is set at 90% of the adjusted annual contract quantity while the maximum daily quantity set at 110% of DCQ.

Jadestone has 100% operated interest in the Lematang production sharing contract onshore Sumatra that hosts Akatara.

“There has been a huge amount of effort and commitment across the business to ensure that the Akatara project remains on schedule and working closely with ourmain contractor [JGC Indonesia], we are on the threshold of the key milestone of mechanical completion of the facility,” commented Jadestone chief executive Paul Blakeley.

Approximately 7.7 million manhours have been worked on the Akatara project without a lost-time incident.

“Whilst seeking to maintain the very impressive safety performance to date, the team are now focused on the remaining commissioning activities ahead of introducing first gas into the facility this month and delivering sales gas volumes,” added Blakeley.


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