Madura BD

Madura BD Oil and Gas Field Profile

Location

The Madura BD oil and gas field is located in the Madura Strait production sharing contract (PSC) area, offshore East Java, Indonesia. It is approximately 65km east of Surabaya and 16km south of Madura Island.

Ownership and Operator

The field is operated by Husky-CNOOC Madura (HCML), a joint venture between Husky Oil and CNOOC Limited, each holding a 40% interest. The remaining 20% working interest is held by Samudra Energy through its affiliate SMS Development.

Discovery and Background

The Madura BD field was discovered in 1987, following the discovery of the Madura MDA field in 1984. Additional discoveries in the area include the MBH field in 2011 and the MDK, MAC, MAX, and MBJ fields in 2012.

Development History

The initial development plan for the Madura BD field was approved by the Indonesian Government in 1995, but it was delayed due to economic issues related to the construction of a proposed independent power plant. The current development plan was approved in 2008, and front-end engineering and design (FEED) studies were completed in 2010. The Indonesian Government granted a 20-year extension to the PSC in October 2010, extending it until 2032.

Reserves

As of the latest data:

• Natural Gas: Probable reserves of 2633.44 million cubic meters (as of 2015), with remaining recoverable reserves estimated at 8409.17 million cubic meters (as of 2023).
• Condensate: Probable reserves of 6 million barrels (as of 2015), with remaining recoverable reserves of crude oil and condensate estimated at 21.9 million barrels (as of 2023).

Production

• Gas Production: Estimated to reach between 100 and 110 million metric standard cubic feet per day (MMscfd) of sales gas. As of 2022, the production was approximately 1054.23 million cubic meters per year.
• Condensate Production: Estimated at 6,000 barrels per day. As of 2022, the production was approximately 2.6 million barrels per year.

Infrastructure and Development Details

The project involves:

• Drilling of four initial development wells and two slots for future development.
• Installation of a wellhead platform (WHP) at a water depth of 55 meters.
• Deployment of a floating, production, storage, and offloading (FPSO) vessel, with the FPSO supply contract awarded to Bumi Armada Offshore Holdings and PT Armada Gema Nusantara.
• Construction of a gas metering station (GMS) onshore.
• Installation of two flexible risers between the WHP and FPSO.
• Construction of a 60km-long pipeline to export gas to the GMS.

Gas Sales Agreements

Three gas sales agreements were finalized in October 2007 with PT Parna Raya, PT Inti Alasindo Energy, and PT Perusahaan Gas Negara Tbk (PGN). These agreements cover the purchase of 100 million metric standard cubic feet per day (MMscfd) of gas, with a contract period of 20 years from the start of the first gas flow.

Contractors Involved

• The FPSO contract was awarded to the joint venture of Bumi Armada Offshore Holdings and PT Armada Gema Nusantara.
• The WHP is being constructed by a consortium of PT PAL Indonesia, China Offshore Oil Engineering (COOEC), and PT Widya Engineering Supasi. Engineering activities and safety risk assessments for the WHP were performed by PT Bina Rekacipta Utama.

Production Status and Future Outlook

The Madura BD field started production in 2017. As of the latest data, the field has recovered 43.18% of its total recoverable reserves, with peak production in 2022. Production is expected to continue until the field reaches its economic limit in 2036, accounting for approximately 2% of Indonesia's daily gas output.

Additional Information

The Madura Strait PSC covers an area of approximately 2,516 square kilometers and includes several other discoveries besides the Madura BD field. CNOOC Southeast Asia Limited, a subsidiary of CNOOC Ltd., has significant experience in developing and operating blocks in Indonesia.