SKK Migas plans to accelerate Ande Ande Lumut development
18 Sep 2019 - Upstream Costs and Technology | Headline Analysis
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Kelvin SamKelvin SamPrincipal Research Analyst

SKK Migas has plans to accelerate the development of Ande Ande Lumut (AAL) in Northwest Natuna PSC (production sharing contract) in a bid to boost oil and gas production in Indonesia.

The POD (plan of development) for AAL was approved by the Indonesian government in 2011 but development was hampered by low oil price. The FID (final investment decision) has been delayed several times due to POD amendments to integrate the development of secondary sandstone reservoir with the main reservoir.

Mitsui increased its ownership of AAL to 100% following its acquisition of Santos' 50% interest in Northwest Natuna PSC. Development of AAL previously envisaged a 24-slot WHP (wellhead platform) tied back to a leased FPSO unit. The project was targeted to commence production in the first quarter of 2021.

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