Malaysia’s Petronas achieved first oil from the Bukit Tua Field offshore Indonesia on May 17, the company said May 25.

Hazli Sham Kassim, general manager and country chairman of Indonesia operations, said it is the company’s biggest upstream project so far in Indonesia. It involves the development of the Ratu Nusantara FPSO, a 110km subsea pipeline and an onshore receiving facility.

Bukit Tua is about 110km offshore East Java on the Ketapang Block. It could initially produce 3,700bbl/d and 2MMcf/d of gas. Production capacity could be 20Mbbl/d of oil and 50MMcf/d of gas.

The gas produced from the field will be transported through a pipeline to the ORF in Gresik, East Java while the oil will be offloaded to carriers for export.

Petrogas Jatim Utama, owned by East Java’s provincial government, signed gas sales and purchase agreements with Petronas to buy gas from the field to generate electricity.

The Ketapang block is operated by PC Ketapang II Ltd., Indonesia’s Petronas subsidiary. PC has an 80% interest. The remaining 20% is held by state-owned Perusahaan Gas Negara through its subsidiary PT Saka Ketapang Perdana.