BP Migas orders Cepu partnership to revise PoD

The Upstream Oil and Gas Regulating Authority (BP Migas) had returned PoD of Cepu block filed by ExxonMobil and Pertamina, ordering the partnership to revise the PoD to include gas development in 2009 to meet Java gas demand, Bisnis Indonesia reported Friday.

BP Migas? deputy director for marketing and economy division Eddy Purwanto said the PoD was returned to the Cepu block operator for revision.

One of the points that BP Migas asked was the operator's need to revise the schedule of oil production and advance the gas production schedule.

?Gas production must start in 2009 at the latest after the beginning of oil production in 2008,? Eddy said.

BP Migas chairman Kardaya Warnika said if the proven reserves are only 3 TCF from the potential 5.8 TCF, it still can meet the gas demand in Java.

?Based on the rough calculations, if from the possible 5.8 TCF gas reserves are converted into 3 TCF, then it is equivalent to 500 MMSCFD (million metric cubic feet per day) of gas supply and it will be enough to meet the current demand,? Kardaya said.

Earlier the government has asked state-owned oil and gas company Pertamina and ExxonMobil Indonesia as the operator of the Cepu block to soon begin gas production in the block so that Java will have enough gas supply to anticipate the possible cancellation of construction of the East Kalimantan and Central Java gas pipeline from the initial plan. (*)