Indonesia-focused oil and gas exploration and production company Ramba Energy has received approval for Akatara field development plan from the Indonesia Energy and Mineral Resources Ministry and Indonesia’s upstream oil and gas regulator Satuan Kerja Khusus Minyak dan Gas (SKK Migas).
Located in the Lemang block in Sumatra, the field is expected to begin production with an initial rate of 1,635 barrels of oil per day (bopd) in early 2016, and would significantly reach full capacity of 4.10 million standard cubic feet of natural gas per day (Mmscfd) in late 2017.
The approvals allow the company to move ahead with development of the Akatara field and commercialization of the Lemang block within 2,541.04km2 of working contract area.
The field development plan covers the workover of the SLG-1, AKT-1 and AKT-2 wells, the provision of eight development wells and two step-out wells, early production facilities, oil transportation by trucking and development of permanent production facilities and infrastructure.
Independent study, international petroleum consultancy DeGolyer & MacNaughton earlier estimated the block to host approximately 511 million barrels of oil and 468 billion cubic feet of gas.
Ramba CEO David Aditya Soeryadjaya said: "Investors will find the block’s low cost of production attractive in this reduced oil price environment.
"Once production begins, we can prove up the reserves of the discovered structures and perform additional exploration work, all using the internal cash flow generated."