Pivoting Oil to Gas Mode Strategy: A Spin-Off Approach to Accelerate Energy Transition and Sustainability in Sangasanga Oilfield, East Kalimantan, Indonesia

Abstract The Sangasanga Oil Field, spans 13,346 hectares across South Mahakam, North Mahakam, and Samboja, and has been in development since the early 1900s. Currently in decline with oil recovery factor 36%, it faces challenges from high operating costs and marginal development well economics. Despite this, over 20 BCF of untapped gas resources exist, hindered by their remote location, inadequate facilities, and limited expertise in gas production technology. Developing these resources could prolong the field’s lifespan and enhance energy production with reduced carbon emissions. Unlocking gas resources in this deltaic environment necessitates collaboration among subsurface, production operations, and commercial teams to guarantee sustainable gas management for long-term commitment. Subsurface Maturity: Accelerate subsurface studies and validate gas reserves and resources.Integrated & Borderless Operations: Synergy with nearby operators for joint drilling in depth right overlapping area and expedite surface facilities studies for pipeline tie-ins.Gas Commercialization: Negotiate gas pricing and allocation with East-Kalimantan stakeholders.Technology Sharing: Replicate deliquification technologies including wellhead compressors, foam stick injection, and stimulation shear dilation fracturing. Since 2022, gas production Sangasanga field has risen from 2 to 7.5 MMSCFD and remains stable to this day. This increase is attributed to the optimization of current gas wells through deliquification technology, workover activities, as well as drilling borderless wells between PEP & PHSS. It is anticipated that gas production will exceed 10 MMSCFD by 2027, driven by the gas development project in South Mahakam. The following initiatives and milestone are underway for gas development: North Mahakam gas began flowing to PLN through a 3.7 km pipeline to the Lampake PHSS facility, reaching a gas rate of 5 MMSCFD under a facility sharing agreement since September 2022.A collaborative drilling between cross operators has successfully completed 8 wells with initial gas rates of 0.2–0.7 MMSCFD per well.Sangasanga and Sangatta fields have integrated into the East Kal system, connecting gas producers, pipeline buyers, transporters, and the Bontang LNG Plant in East Kalimantan in Juli 2023.The mini gas compressor has reduced liquid loading, increasing gas output by 0.3 MMSCFD per well. Foam sticks added 0.2 MMSCFD per well, while shear dilation fracturing has boosted flow from 0.1 to 0.5 MMSCFD for over a year. As the world moves toward cleaner energy solutions, Sangasanga’s proactive approach serves as model for other mature field seeking to adapt and thrive in a rapidly changing energy landscape. Through continued innovation & collaboration, the Sangasanga oilfield is poised to play significant role in the global energy transition, setting new standards for efficiency and sustainability. The learnings from the collaboration efforts in this region can be replicated for gas maturity enhancement across other assets.