Indonesia has approved the plan of development (POD) for the Lengo gas field in the Bulu production-sharing contract (PSC) offshore East Java, KrisEnergy Ltd. said in a news release.

Approval of the POD paves the way for the operator, KrisEnergy, to pursue formal negotiations for gas sales agreements with potential offtakers.

The Bulu PSC covers 697 sq km (269 sq miles) in three areas–Bulu A, Bulu B and Bulu C–over the East Java Basin in water depths of 50 m (164 ft) to 60 m (197 ft), the release said.

The Lengo gas discovery is located in the Bulu A area and will be developed via four development wells and an unmanned wellhead platform. A 20-in., 65-km (40-mile) export pipeline will transport the gas directly to shore. Production is anticipated to commence about 24 months after the joint-venture partners declare final investment decision and is expected to plateau at 70 MMcf/d.

The Bulu PSC lies adjacent to the KrisEnergy-operated East Muriah PSC, which contains the East Lengo gas discovery. The company plans to drill an appraisal well in the East Muriah PSC and, if successful, to develop East Lengo gas via a single well tied back to the Lengo facilities, the release said.

KrisEnergy also operates the Sakti PSC, an exploration block adjacent to the Bulu A area, where the company completed 1,202 km (747 mile) 2-D and 401 sq km (155 sq miles) 3-D seismic acquisition programs earlier this year.

KrisEnergy holds a 42.5% operated working interest in the Bulu PSC and is partnered by AWE Ltd. with 42.5%, PT Satria Energindo with 10% and PT Satria Wijayakusuma with 5%, according to the release.