BP Migas to decide whom to develop Pabelokan pipeline soon

Indonesian upstream oil and gas authority BP Migas said it would soon decide whether to let CNOOC to build it own pipeline to flow gas from its Pabelokan gas field offshore West Java to Banten province or to allow state gas distribution firm PGN to develop the pipeline.

?BP Migas is currently studying which option will give greater benefit to the state. The decision will be made strictly on economic basis. But one thing for sure is that the project must be commenced soon,? said BP Migas deputy chairman Kardaya Warnika.

CNOOC, the operator of South East Sumatra PSC, where Pabelokan field is located insists to develop the 90-km pipeline on its own, while PGN proposing that it builds the pipeline and CNOOC would pay toll fee.

CNOOC is expected to begin to supply gas at 120 MMCFD in 2006 to state electricity firm PLN?s power plant in Banten and to PGN.(alex)