Kalimantan's $891 Million Offshore Gas Projects Set to Boost Production by Nearly 65%
Jakarta. Two offshore natural gas projects in East Kalimantan, developed with a combined investment of $891 million, are expected to become fully operational by the end of October, increasing the region's gas production by approximately 290 million cubic feet per day.
Energy and Mineral Resources Minister Bahlil Lahadalia said Thursday that the newly inaugurated Jangkrik North East #6 (JNE#6) gas receiving facilities and Maha-South Hub production facilities would significantly increase output from offshore fields in East Kalimantan.
The JNE#6 project is expected to contribute an additional 60 million cubic feet per day, while the Maha field will supply approximately 230 million cubic feet per day.
"JNE#6 will add 60 MMSCFD, while the Maha Block will contribute around 230 MMSCFD, bringing the total additional production to approximately 290 MMSCFD," Bahlil said in a statement published on the ministry's website.
"With existing production in the area currently at 450 MMSCFD, we expect total output to reach 750 MMSCFD by Nov. 1," he added.
The projected increase would represent a substantial expansion of offshore gas production in the region, strengthening Indonesia's domestic energy supply.
Bahlil said the drilling of a new sidetrack at the JNE#6 well had delivered significant results since Oct. 9, with gas production increasing more than fivefold.
The two newly inaugurated projects are also expected to create more than 700 jobs and support greater participation by domestic fabrication companies in deepwater oil and gas development.
According to the Energy and Mineral Resources Ministry, the Kutai Basin in East Kalimantan remains one of Indonesia's most promising hydrocarbon-producing regions, with recent discoveries highlighting its potential to support growing energy demand.
"The discovery of potential gas resources of around 5 trillion cubic feet (Tcf) and 300 million barrels of condensate confirms that Indonesia's oil and gas potential remains substantial and promising," the ministry said.
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