Independent Medco Energi’s touted Paus Biru gas field development on the Sampang production sharing contract offshore East Java, Indonesia is facing at least a two-year delay, according to a project partner.
The Paus Biru development envisages a single well and wellhead platform at the offshore field, as well as a 27-kilometre subsea pipeline to connect the well to existing Oyong field infrastructure.
Subject to final approvals, production start-up is now expected to commence in 2027 at a rate of 20 million to 25 million cubic feet per day of gas. As recently as last year, first gas from the Paus Biru field had been touted for 2025, but that schedule has well and truly slipped.
Discussions between the Sampang operator Medco and the Indonesian government continued during the fourth quarter and the joint venture now expects to apply for a production extension for the existing Wortel and Oyong fields on the block and for Paus Biru, when it is developed, Sampang co-venturer Cue Energy confirmed on Monday.
The proposal has government support although the regulations required to implement it are still being finalised, added Cue, which said the approval is likely to be in the second half of this year.
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Subject to approval of an extension for the producing fields, the Sampang partners will also seek changes to the terms of PSC for the Paus Biru development. The PSC amendments and extension are key steps required for the joint venture to take the final investment decision for the project.
Medco operates the Sampang PSC while Cue has a 15% interest.
Upstream approached Medco’s representative for the company’s comment on Cue’s statement but it declined to so do.
Meanwhile, Cue is continuing to progress the relinquishment of its 100% operated Mahakam Hilir PSC, also in Indonesia, which expired in April 2021.
“The timing of full relinquishment of the PSC is being defined by Indonesian government administrative processes. During the [fourth] quarter [2023], progress was made on the key items of land certification and government auction of surplus equipment,” said Cue.