Mubadala E&P firm to start Ruby field development
Development phase to cost $500 million,
The development of the Ruby gas field in Indonesia has been approved by BPMIGAS, Indonesia’s Upstream Oil and Gas Executive Agency, allowing the project to proceed to the construction and installation stage.
The development phase will involve total investment of approximately $500 million by the field partners PEARLOIL (Sebuku) Limited, Total E&P Sebuku and INPEX South Makassar Ltd.
Ruby is located in the Makassar Strait between Kalimantan and the island of Sulawesi, and is operated by Pearloil, a subsidiary business of Mubadala Oil & Gas.
The Block covers 2,345 square kilometers with water depths ranging from 50 to 200 meters.
The offshore development will consist of the drilling of an anticipated four production wells and the installation of two main structures -- a wellhead platform, bridge-linked to a production platform. Gas will be transported to shore via a 14 inch, 312 kilometer pipeline and a dedicated receiving terminal, for processing at the Senipah Onshore Gas Plant, operated by Total E&P.
It will then be delivered to the buyer, PT Pupuk Kalimantan Timur, which operates a nearby fertilizer plant, under the terms of a wider Natural Gas Sales and Purchase Agreement covering the Sebuku and Mahakam PSCs that was also signed this week. Ruby will be the prime source of supply to fulfill the contract once the field comes on stream in the latter part of 2013.
Barry O’Donnell, Regional Vice President, Mubadala Oil & Gas and President, Pearl Energy, said, “Ruby is our first full-field, operated development project in Indonesia, and as such it is an important project for us to have brought to the point of sanction. Our efforts will now be directed to working with our contractors to deliver Ruby into production safely and on schedule.”