Sampang Production Sharing Contract (PSC)
Cue holds a 15% interest in the Sampang Production Sharing Contract (PSC) situated in the Madura Strait, East Java, Indonesia. This PSC comprises two producing fields, Oyong and Wortel gas fields, along with a gas discovery at Paus Biru.
Gas extracted from the Oyong and Wortel gas fields is transported via a subsea pipeline to the Grati gas processing plant, where it is then supplied to PT Indonesia Power as a fuel source for the Grati electricity generation plant.
The Oyong field began its production in 2009, followed by the Wortel field in 2012.
The field's production is 22 mmcfd million cubic feet per day (mmcfd) from two offshore gas fields, Oyong and Wortel, operating under enduring fixed-price contracts.
During 2023, progress was made on the Paus Biru gas development, with the Indonesian Government approving various changes to the PSC terms aimed at increasing the economic benefit for the project participants. In addition, the government provided support for an extension application to the term of the Sampang PSC, which currently is set to expire in 2027. The Sampang JV expects to apply for a 20-year permit extension.
The PSC amendments and extension are key steps required for the JV to proceed with considering a Final Investment Decision (FID) on the project. The Paus Biru development is planned to consist of a single well and wellhead platform at the Paus Biru gas field, with a 27km subsea pipeline connecting the well to existing infrastructure at the Oyong field. Subject to final approvals, gas production from Paus Biru is expected to commence by 2025 at a rate of 20-25 mmcfd.
An extension to the permit would provide more long-term certainty, and the JV is actively reviewing all existing opportunities within the permit area, including the Jeruk oil discovery. A technical workshop was recently conducted to evaluate the Operator’s revised subsurface modelling and development concept plans. Additional work is currently underway, with the objective of defining an appraisal and development program over the next six to twelve months.
In our FY24 Outlook, we are actively engaged in discussions to secure a 20-year permit extension, beginning in 2027. Furthermore, we anticipate reaching the Final Investment Decision for the Paus Biru project, with a net share of 6.7 billion cubic feet (bcf), within FY24. We have a projected gas production target for 2025 ranges from 20 to 25 million cubic feet per day. Additionally, we are currently reviewing the development concept for Jeruk, a significant oil discovery made back in 2003, underscoring our ongoing efforts to tap into promising opportunities and strengthen our portfolio.
The Sampang PSC Joint Venture partners are:
|Medco Energi (Operator)
|Singapore Petroleum Corporation