Aceh first gas from Block A delayed to 2015

By Alexander Ginting

UK Independent oil, gas firm Premier Oil plc reported on Thursday that first gas from Aceh Block A PSC onshore Aceh will be delayed by one year to 2015 due to prolonged EPCI contractor selection process.

The delay is due to re-tender process of the EPCI tender, the company said in Annual Results announcement.

Hardiono, Vice-Chairman of upstream oil, gas authority BPMIGAS told Petromindo.com in January 2012 that there were three contenders for the tender, but only Japanese firm Chiyoda Corp. passed the technical selection.

The block is expected to supply 110 mmscfd of gas to Aceh fertilizer maker PT Pupuk Iskandar Muda and 15 mmscfd to a power plant operated by state power firm PLN in East Aceh.

Indonesia-listed firm Medco Energi is the block operator with Medco is the block?s operator with 41.67 percent interest. Premier also holds 41.67 percent interest with the balance held by Japanese firm Japex.

Premier also reported that preparations are at an advanced stage for the drilling of the Matang-1 exploration well during 2012 which is located within the block.

Editing by David Mustakim