BPMIGAS awaits govt decision on five oil and gas projects

Upstream oil and gas regulator BPMIGAS is waiting for the government?s decision on the continuation of five oil and gas projects, its executive said.

The agency?s spokesman Gde Pradyana said in Jakarta last week that the government had not yet approved the terms and conditions for the proposed continuation of the development of the five oil and gas projects

The five projects include Ruby Field Development (Pearl Oil Sebuku Ltd), Muriah Development (Petronas Carigali Ltd), Karendan Gas Plant Facility (Elnusa Bangkanai Plant Energy Ltd), Air Itam Production Facility ( JOB Pertamina-Golden Spike Indonesia ) and Jambi Merang field ( JOB Pertamina-Talisman Jambi Merang).

"The agreement on the terms and condition has not been made. We hope the government will soon be able to issue its decision on the matter,? he told Petromindo.com.

He however refused to elaborate what kind of terms and conditions required for the development of the five oil and gas projects.

At least five of 53 oil and gas projects have been delayed this year due to either financial or technical problems, BPMIGAS said in May. ?Five or 10 percent of the 53 oil and gas projects have been delayed this year,? Iwan Ratman, the head for the project management division has said.

Iwan said that the delay was caused by several factors including financial problem, late budget approval, revision of plans of development (PoD), and a problem in tender process as well as land overlapping problem.

The Air Itam project, for example, was delayed due to financial problem because Golden Spike had not disbursed the required funds, he said. ?The Air Itam project will need at least US$100 million,? he added.

He said that the project should have been commenced in the fourth quarter, 2009. Due to the financial problem, the project could be only started in the second quarter, 2012. (godang)