Indonesia has approved the initial plan for the development of the Tuna gas field located in the South China Sea between Indonesia and Vietnam, reported Reuters, citing Indonesian upstream oil and gas regulator SKK Migas.
The Tuna field is expected cost approximately $3.07bn to commence production.
The Tuna field is anticipated to have a peak production capacity of 115 million standard cubic feet per day (Mmscfd) in 2027, SKK Migas spokesperson Mohammad Kemal was cited by the news agency as saying.
Premier Oil Tuna (the Harbor Energy group of companies) operates the Tuna block PSC with a 50% stake while ZN Asia (the Zarubezhneft Group of Companies) holds the remaining 50% stake.
Indonesian energy minister Arifin Tasrif was previously cited by Reuters as saying that the production from the field is planned to be exported to Vietnam, starting in 2026.
Indonesia is expected to deliver 100 to 150Mmscfd of gas from the Tuna block via a gas pipeline, Tasrif said.
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SKK Migas chairman Dwi Soetjipto that the project development would provide economic benefits and emphasise Indonesia’s maritime entitlements.
Soetjipto said: “There will be activity in the border area, which is one of the world’s geopolitical hot spots.
“The Indonesian navy will also participate in securing the upstream oil and gas project so that, economically and politically, it becomes an affirmation of Indonesia’s sovereignty.”
The Tuna Block is in the Indonesian exclusive economic zone, 13km from the border of the Vietnamese marine economic zone.