BP Migas will sign eight new gas contracts by the end of this year

Indonesian upstream management authority BP Migas expects to sign between eight and seven gas exploration and production contracts by the end of this year as part of its commitment to cope with the shortage of gas supply in East Java and Kalimantan, the agency?s chairman Rachmat Sudibyo said in Jakarta on Friday.

"We hope we can sign between seven and eight new gas contracts by the end of this year," Rachmat said as reported by Bisnis Indonesia as saying on Saturday. He said that the new oil and gas contracts will cover a number of gas concession areas in Aceh, Tarakan of East Kalimantan and East Java.

According to him, companies which will sign the new gas exploration and production contracts will include Lapindo Brantas, Amerada Hess, Santos and Exspan. Rachmat hopes that the signing of the new gas contracts will help solve the shortage of natural gas supply in Kalimantan and East Java.

"New gas supply expects to flow from Pongkah field which is operated by Amerada Hess beginning 2004, from Lapindo Brantas? Wunut field beginning 2003, Santos? Oyong field beginning 2004, and from Kodeco?s KE23 field beginning next year as well as from ExxonMobil?s BD Madura strait field starting from 2007," he said.

Rachmat said that although there would be additional gas contracts, the total gas production will still be unable to meet the overall demand in East Java which reaches 420 million cubic feet per day. BP Migas, the government?s agency responsible for oil and gas upstream exploration and production activities, is still working hard to open new on-shore or offshore fields in East Java and Madura in a bid to further meet the rapid growth in the gas demand in the province. (*)