SKK Migas, an upstream regulator, has approved the development plans for the drilling of wells on the Madura Strait block in Indonesia. Husky CNOOC Madura (HCML), a joint venture (JV) between China National Offshore Oil Corporation (CNOOC), Canada-based Husky Energy Incorporated, and Indonesia-based Samudra Energy Limited, will spend about USD88 million to develop the project.
The JV will undertake drilling works of two development wells in the Madura Strait block, which has gas reserves of roughly 38.04 billion cubic feet. The first unit of gas output is expected in the third quarter of 2023. The initial production rate is estimated to be 10.05 million square feet per day, with a high of 24 million square feet per day expected in 2024.