Amerada to develop three gas wells next year

Oil and gas company Amerada Hess will begin drilling activities at three gas wells in the company's Ujung Pangkah gas field in East Java between August and September next year as part of its program to meet gas supply contract with PLN, Investor Daily reported on Monday.

The company's vice president for government and external affairs Artis Waluyono said in Jakarta last week that if drilling activities could be carried out as scheduled, the gas production from the Ujung Pangkah field could be commenced by the end of 2006.

"We are still waiting for rig facilities. We are still negotiating the financing for the rig procurement," he said, adding that the gas production from the Ujung Pangkah would be used to meet a supply contract with PLN.

Under the existing contract, Amerada will provide a gas supply of about 100 million cubic feet per day to PLN's power plants in Gresik from the Ujung Pangkah field which is estimated to have a gas reserve of about 440 billion cubic feet. (*)