The Madura BD project in Indonesia is expected to begin production in the second half of 2017, according to a report by GlobalData.

Entitled Indonesia Madura BD Project Panorama – Oil and Gas Upstream Analysis Report, the report provides details of the development activities at the field.

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Operated by Husky Energy, the field is being developed with an investment between $350m and $400m. BPMIGAS approved the plan for development of the Madura BD field in May 2008. The field development was 90% complete at the end of 2016's third quarter.

Installation of a wellhead platform and pipeline infrastructure was completed in November 2015. In addition, drilling of four development wells was completed in Q3 2016. Pipeline construction is currently ongoing and an FPSO leased for the field was reported to be on track for delivery at the end of 2016.

"The gas will help in the development of Indonesia’s industrial and mining sectors."

Production at the Madura BD field is expected to commence in the second half of 2017 at the rate of 100 million cubic feet of natural gas and 6,000 barrels of associated condensate. Natural gas produced from the field will be transported to Pasuruan, East Java, through a pipeline. The gas will help in the development of Indonesia’s industrial and mining sectors.

Husky Energy has announced the fixed-price gas sale contact of $7.00/mmbtu and signed gas sale and purchase agreements with PT Parna Raya, PT Inti Alasindo Energy and PT Perusahaan Gas Negara Tbk (PGN). The agreements were first signed in October 2007 and renegotiated in 2015 to accommodate a price increase.

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The Madura BD field lies in the Madura Strait PSC, which holds excellent exploration potential. Development of the Madura BD field will help in establishing a production hub, which will enable the quick development and hook-up of future discoveries.