Genting Berhad’s 95%-owned indirect subsidiary Genting Oil & Gas Limited, via its wholly-owned indirect subsidiary Genting Oil Kasuri Pte Ltd, has received the formal letter from SKKMigas on the approval from the Minister of Energy and Mineral Resources of the Republic of Indonesia for revision to the first phase Plan of Development for the Asap, Merah and Kido structures (“POD 1”) which was announced by the Company on 4 May 2018.
The POD 1 was originally to utilise 1.735 trillion cubic feet of gas-initial-in-place in the Roabiba formation in the Asap, Merah and Kido structures to supply natural gas to a petrochemical plant to be built in Teluk Bintuni, for 20 years. The revision to POD 1 (“Revised POD 1”) will now utilise 2.674 tcf of GIIP, which will derive from 1.735 tcf GIIP in POD 1, and another 0.939 tcf GIIP from additional Merah resources and Steenkool formation. The Revised POD 1 aims to supply 230 million cubic feet per day of natural gas to a Floating Liquified Natural Gas plant for 18 years, as well as another supply of 101 mmcfd of natural gas to an Ammonia and Urea plant to be built in West Papua, Indonesia for 17 years.
The current Production Sharing Contract for Kasuri Block in West Papua will expire in 2038. In the SKKMigas letter, it is stated that GOKPL is eligible to apply for the extension of the PSC according to the economic life, in accordance with the applicable regulations.
In a separate but related development, GOKPL and PT Pupuk Kalimantan Timur had also entered into a Heads of Agreement, setting down the framework for the potential supply of natural gas to an Amurea plant to be built in West Papua, Indonesia by PT Pupuk Kaltim. PT Pupuk Kaltim, a subsidiary of PT Pupuk Indonesia, has been tasked with the responsibility to carry out the development of the National Strategic Project of Fakfak Fertilizer Industry Zone, with the construction of an Amurea plant in Fakfak, West Papua Province using the feed gas supplied from GOKPL.
