According to local media reports, quoting the Deputy Head of SKK Migas, Petronas Carigali, operator of Muriah PSC, located in offshore East Java, is in discussion with its partner Saka Energi (subsidiary of PT Perusahaan Gas Negara, PGN) on the possibility of changing management role in the block. Saka Energi may continue production from the Kepodang field if taking over operatorship of the PSC, with a limited production volume of 20 MMcfg/d for a period up to three months, due to limited remaining reserves in the field.  Petronas suspended gas supply from Kepodang on 23 September 2019. According to PGN, the supply was interrupted on the grounds of the termination of the Gas Sales Agreement (GSA) between Petronas Carigali and buyer PT Perusahaan Listrik Negara (PLN).  The GSA termination has also led to the end of the gas transportation agreement through the Kalija I pipeline network operated by PT Kalimantan Jawa Gas, a PGN affiliate company. Gas produced from Kepodang was supplied to the Tambak Lorok power plant operated by PLN.  Under the GSA signed in 2012, the daily contract quantity was 116 MMcfg/d, however the field was unable to meet the contracted volumes due to insufficient gas reserves. Gross production from the field in 2018 was approximately 50 MMcf/d.  In July 2017, Petronas requested force majeure due to the field being unable to fulfill the daily contract quantity. According to a material balance analysis conducted by government oil and gas research agency Lemigas in 2017, gas resources were estimated at only 107 Bcfg whereas the total sales volume from the approved Plan of Development (POD) amount to 354 Bcfg.  First production from Kepodang was achieved in 2015 at an initial rate of 56 MMcfg/d.  Petronas Carigali is operator of the Muriah PSC with 80% interest and PGN is holding a 20% participating interest via its upstream arm Saka Energi.  Background Information  The Kepodang field, as the Keladi discovery has been labeled, is located about 180km north-east of Semarang in Central Java, in water depths of between 60-70 meters. The field was originally discovered by Cities with the JS 15-1 well in 1971. This wildcat tested 11.45 MMcf/d from Lower "OK" sandstones and 10.54 MMcf/d of CO2 from Kujung Unit III carbonates. Conoco's Kepodang 1 wildcat in 1981 and Shell's Keladi 1 wildcat in 1993 both confirmed the discovery, and the field was successfully delineated by BP in 2001 with a three well programme. A MOU for gas supply to Tambak Lorok was signed between BP and PLN in July 2001.  First gas from the field was initially scheduled for late 2014, as per the GSA signed in June 2012 with buyer PT PLN, having an effective date 30 months after the signing. Gas price has been set at USD 4.61 per MMBtu, with an annual escalation of 8.6% plus transport fees.  The field eventually came onstream in August 2015 at an initial rate of 56 MMcfg/d. The field has been developed through a Central Processing Platform and a Wellhead Platform.  Gas production was transported via pipeline to the onshore facility and supply gas for the Tambak Lorok power plant in Central Java.
According to local media reports, quoting the Deputy Head of SKK Migas, Petronas Carigali, operator of Muriah PSC, located in offshore East Java, is in discussion with its partner Saka Energi (subsidiary of PT Perusahaan Gas Negara, PGN) on the possibility of changing management role in the block. Saka Energi may continue production from the Kepodang field if taking over operatorship of the PSC, with a limited production volume of 20 MMcfg/d for a period up to three months, due to limited remaining reserves in the field.