BPMIGAS approves Eni?s request to increase N. Sumatra block split
Friday, February 24 2006 - 05:51 AM WIB
BPMIGAS chairman Kardaya Warnika told reporters on Friday that his agency is currently assessing the request and said that the same treatment as given to nearby Block A gas block might be given to Krueng Mane. He, however, said that no formal agreement has been signed yet.
He confirmed that Eni has been asking to improve the block?s split from 35:65 currently to 50:50 to Eni?s favor in order to be able to economically develop gas field within the block.
ConocoPhilips, which operates Block A gas block has also earlier asked the government to improve the split from 35:65 to 50:50, but the government reportedly was only willing to give 48:52 split
Gas from both Krueng mane and Block A will be sold to Aceh fertilizer maker PT. Pupuk Iskandar Muda (PIM).
A BPMIGAS source recently told Petromindo.com that Eni was asking for at least US$4.5 per MMBTU price for the gas. The official stated that under current development plant, ENI might be able to deliver 120 MMCFD to PIM.
Krueng Mane exploration block, which was signed in September 1999, is located approximately 50 km north of the Arun LNG (liquefied natural gas) plant. ENI has 100 percent interest in the block.
According to ENI, this block has proven undeveloped reserves of 183 billion cubic feet within the JAU Field and exploration potential of at least 4.5 trillion cubic feet reserves in the three main prospects (BSN, Safir & Emerald). (godang)