Indonesia’s Minister of Energy & Mineral Resources (ESDM) has approved the Plan of Development for Petronas’ Hidayah field development offshore Indonesia, paving the way for key contract tenders to be issued.
Hidayah, located on the North Madura II production sharing contract, is expected to come on stream in early 2027.
Initial output of around 9000 barrels per day of oil will be ramped up to a peak of more than 25,000 bpd in 2033, Reuters reported upstream regulator SKK Migas as saying. The field is expected to be in production through 2041.
Capital expenditure for the Hidayah project, excluding sunk costs, is pegged at $926 million.
Petronas confirmed to Upstream that its latest project in Indonesia has indeed been approved but informed that it was not able to share details of the development concept.
Indonesia’s very own Synergy Engineering is understood to have performed the pre-front-end engineering and design work for Hidayah — this contract had called for a minimum 80% local content (TKDN).
Development concepts under consideration included a standalone project based on a central processing platform or mobile offshore production unit (MOPU) — both with oil storage, and a potential tie-back to existing facilities offshore East Java province.
Petronas Carigali in early 2021 drilled the successful Hidayah-1 wildcat to a depth of 2739 metres.
The successful exploration well encountered an oil-bearing carbonate build-up with good reservoir qualities in the Ngimbang carbonate formation and tested at approximately 2100 bpd of good quality crude.
“The inflow of investment like this is proof that Indonesia’s upstream oil and gas industry is still attractive to investors. It’s just how we work together to create a conducive investment climate,” SKK Migas head Dwi Soetjipto said.
Petronas currently has 100% operated equity in the North Madura II PSC although that could be diluted if local partners come onboard the development.
Updated to include Petronas being unable to share details of the Hidayah development scheme.
