BPMIGAS, BP still in talks about Kangean Block
Tuesday, February 18 2003 - 01:53 AM WIB
The government was awaiting the conclusion of their negotiations about BP Indonesia?s request for extension of its Kangean Block contract, Purnomo told a parliamentary hearing.
?As far as I know, BPMIGAS still disagrees on terms and condition,? Purnomo said without elaborating.
Purnomo added that the government would also consider the views of the parliament?s commission VIII in charge of energy and mineral resources, environment, and science and technology.
He said the commission had yet to submit to the government its views on whether BP Indonesia?s Kangean Block contract, which will expire in 2010, could be extended as requested by the company.
BP Indonesia wants extension of its contract for Kangean Block so that it can develop Terang Sirasun gas field that is located in the area. Currently, the company produces gas in Pagerungan field, also in Kangean Block.
The company argues that, if Kangean Block contract is extended, it could start developing Pagerungan field in order to increase gas supply from the block.
BP Indonesia was given preferential rights to supply gas to East Java, from Kangean. However, gas reserve depletion in Pagerungan has resulted in an acute gas supply shortage in East Java over the past months.
Meanwhile, state oil and gas firm Pertamina says that it is ready to develop Terang Sirasun gas field if the government rejects to extend BP Indonesia?s contract. (godang)