"Thanks to the hard work of PT SEI, it has finally found the gas reserve, which will add to the number of gas wells in Penajam Paser Utara region," he noted here on Monday.
According to Mustaqim, the discovered gas has a flow rate of 18 million standard cubic feet per day (MMSCFD) on a 40/64 inch manifold. The discovery could potentially increase the countrys gas reserves up to 1.2 trillion cubic feet.
He pointed out that it could increase the locally generated revenue of Penajam Paser Utara, which has earned significantly through oil and gas production on a revenue-sharing basis.
"The new gas reserve will increase the locally generated revenue and accelerate development in Penajam Paser Utara," he remarked.
The vice regent is aiming to achieve a production target of 100 percent in South Selulu by 2019, whereas in accordance with the development plan, the target is set for 2018 and will be followed by on-stream production within a year.
"The SIS-A#1 gas well can produce 19 MMSCFD during production testing, while it has a gas reserve of up to 500 billion cubic feet," he revealed.
South Selulu is located in Penajam Paser Utara within 60 kilometers of Balikpapan or can be reached in 2.5 hours using a speedboat.
(Reported by Amirullah/Uu.INE/KR-BSR/F001)