Project Profile
Value: US$7.8 billion
Location: North Sumatra, onshore Indonesia
Reserves: 18.56 trillion cubic feet (tcf) of shale gas
Production: From about 40 million standard cubic feet per day (mmscfd) to 100 mmscfd by 2020
Pertamina plans to spend up to US$7.8 billion to develop the major Sumbagut shale gas block in North Sumatra. Sumbagut block was expected to go from about 40 million standard cubic feet per day (mmscfd) to 100 mmscfd by 2020. Pertamina officially signed the production-sharing contract (PSC) for the Sumbagut block at the opening of the of the 37th Indonesian Petroleum Association (IPA) convention in Jakarta. Sumbagut block is estimated to possess 18.56 trillion cubic feet (tcf) of shale gas and Pertamina, which will operate the block through its subsidiary PHE MNK Sumbagut, has been given six years for the first exploration phase and four years for second exploration phase. Most of the gas from Sumbagut will go to the domestic market.Shale gas extraction is carried out by injecting water and chemicals into the rocks through a highly controversial technique known as hydraulic fracturing, or more usually, \'fracking\'.
Operators:
Pertamina (through its subsidiary PHE MNK Sumbagut): Operator with 100% interest