BP sees Pagerungan gas output 150 MMCFD in 2003

BP Indonesia, a unit of Anglo-American energy giant BP Plc, said on Monday that natural gas supply from Pagerungan gas field offshore East Java would constantly declining due to reserve depletion.

?Currently we could flow 200 million standard cubic feet per day (MMCFD) of gas to East Java, but next year, we predict that average gas flow will drop to 150 MMCFD,? said Dharma Jenie, a senior official of BP Indonesia.

Another BP Indonesia official Satya W. Yudha said in 2004, gas supply from Pagerungan would decline even further. ?We see gas supply at 120 MMCFD in 2004,? he said.

The industrial province of East Java had been in short supply of gas as three consumers, state electricity firm PLN, state fertilizer maker Petrokimia Gresik and state gas distribution company PGN, need at least 400 MMCFD combined. The demand is predicted to be increasing steeply, as natural gas is getting more competitive after fuel oil subsidy is reduced.

Aside from BP, other East Java gas producers are Lapindo Brantas and Kodeco, with current combined output of less than 100 MMCFD. Another gas producer, Amerada Hess is expected to supply up to 100 MMCFD to East java from Pangkah gas field to East Java, while Kodeco and Lapindo Brantas is also trying to increase production.

BP had been trying to win government?s approval to extend Kangean PSC contract, which will expire in 2010, in order to be able to develop Terang-Sirasun gas field. The gas field has 0.9 trillion cubic feet in proven reserves and BP argued the extension of the PSC block would be able to ease East java gas supply shortage. (alex)