Bangkanai development drilling scheduled to begin in 2007

Oil and gas firm PT Medco E&P Indonesia said Thursday the re-entry and development drilling activities at Karendan gas field of the block were scheduled to commence in 2007.

Medco E&P said in a statement that the program would cost about US$40 million.

Bangkanai block, previously known as Teweh block, was awarded by the government in November 2003.

The block is operated by PT Elnusa, a subsidiary of state-owned oil and gas firm PT Pertamina, with 36 percent working interest. Others co-venture in the block are Medco E&P (30 percent) and PT Mitra Energi (34 percent).

Karendan gas field, which was discovered in 1982, is estimated to contain about 40 billion cubic feet (BCF) of proven gas reserves. The gas reserves is potentially to be increased up to 190 BCF.

Medco Group is currently proposing to construct a gas-fired power plant in the same province.

Medco E&P spokesperson Aditya Mandala confirmed Thursday that gas supply to the power plant will be sourced from the Karendan field. (godang)