Criterium Energy Ltd. has delivered first gas from its Southeast Mengoepeh (SE-MGH) field in South Sumatra, Indonesia, marking a key milestone for the company’s upstream gas programme in the region.
The 100%-operated onshore field, which sits in the Tungkal PSC, is now supplying gas to the Sekernan gas sales point. Criterium said the gas was safely delivered on 10 November 2026.
First gas and commercial terms
Gas from the 21 bcf SE-MGH field is flowing through a newly built 25-kilometre pipeline into the existing Teluk Rendah Gas Plant, operated by Jindi South Jambi B Co. Limited. From there, it moves through the 60-kilometre TRGP-Sekernan Pipeline to the delivery point.
Before production started, the pipeline from SE-MGH to the TRGP was pressure tested up to 1,800 psi. Initial production rates are in line with expectations and will be reported once they stabilise.
Sales will be made under the previously completed Gas Sales Agreement with PT Perusahaan Gas Negara (Persero) Tbk. The agreement sets a rate of about US$7.00/MMBtu, equivalent to US$7.6/mcf for SE-MGH gas because of its high heating value. It also includes a take-or-pay commitment, giving a minimum level of contracted gas sales and greater visibility over future cash flows.
The contract also allows gas sales to rise through mutually agreed nominations as additional production comes on stream.
Next focus: North Mengoepeh
With SE-MGH now producing, Criterium’s attention will shift to the North Mengoepeh development, where engineering and procurement have started. The company said the project will use the same concepts as SE-MGH and build on the transport, processing and sales arrangements already in place.
Criterium previously re-entered two North Mengoepeh wells in 2026, MGH-20 and MGH-32, at rates of 2.5 mmcf/d and 2.1 mmcf/d respectively, with incremental oil production observed. Testing is ongoing.
Planned gas from North Mengoepeh is due to be transported through a 14-kilometre pipeline connecting it to SE-MGH and the existing transportation, processing and sales network. Criterium expects incremental gas production of 2-3 mmcf/d, with further upside from by-passed gas pay zones within the MGH oil field.
Further information on the North Mengoepeh project is expected with the company’s 2027 budget and guidance.
In comments on the project, Matthew Klukas, President and CEO of Criterium Energy, said: “First gas is a major development milestone in the Company’s history and the significant expected increase in production, as we ramp to commercial levels, is expected to drive improved financial performance moving forward.”
He added that the resulting cash flow will be used to fund serial development of the company’s natural gas assets, undertake oil optimisation initiatives and strengthen the balance sheet, with debt repayment a priority.
He also said the project was completed through collaboration between Criterium, the government of Indonesia and contractors, particularly PT Olindo Nusa Surya, and described it as one of the most rapid and efficient gas developments on record in the country.
