Hong Kong’s Jindi Group has reactivated production at the South Jambi B Block onshore Sumatra, Indonesia after a nine-year hiatus.

Initial output of 2 million cubic feet per day of gas was achieved on 24 June and this will gradually be ramped up to 12 MMcfd once additional wells are brought on stream.

Production from South Jambi B will be supplied to state-owned electricity company Perusahaan Listrik Negara’s power plants in Jambi province.

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Taslim Yunus, secretary of Indonesia’s upstream regulator SKK Migas, said he appreciated Jindi completing the reactivation project amid the coronavirus pandemic.

"This success will certainly strengthen our belief that the 2030 goals for oil production of 1 million barrels and 12 billion cubic feet per day [of gas] can be realised," said Taslim.

South Jambi B is the seventh of 12 field development projects that SKK Migas is targeting to come on stream this year.

Current production currently comes from the GK-5 and Hari-2 wells, each of which is delivering 1 MMcfd of gas.

The next two wells to be brought on stream at South Jambi B will be Hari-1 and Hari-6 and this will then boost output up to 6 MMcfd, according to SKK Migas.

Historic shut-ins

The onshore block had earlier produced from the Teluk Rendah and Geger Kalong fields, which were shut in around a decade ago after disappointing reservoir performances.

Former operator ConocoPhillips then elected not to seek an extension to the production sharing contract post its expiry in 2020, leading the Indonesian authorities to auction the mature block.

Consultant Wood Mackenzie earlier said that while several gas fields have already been shut in, future development candidates on the South Jambi B Block in the onshore South Sumatra basini nclude the high carbon dioxide Hari and Bungin fields.