BPMIGAS calls on Medco to submit PoD on South Sebuku

Oil and gas upstream sector regulator BPMIGAS calls on PT Medco E&P Indonesia, a subsidiary of PT Medco Energi International to submit Plan of Development(PoD)for the South Sebuku I field in Bengara I PSC in East Kalimantan.

The firm has submitted Put on Production (PoP)plan to the agency but the latter turned it down.

"We ask Medco to submit PoD if it has certified the block's gas reserve, instead of PoP. There is no regulation allowing firms to submit PoP for a field which is still under exploration," BPMIGAS' spokesperson Elan Biantoro told Petromindo.com

He promised the agency would soon process a PoD proposal from the company once it has certified the gas reserve.

An official at Medco E&P confirmed that the firm had submitted a PoP proposal to BPMIGAS. The firm made the move following a request from the Nunukan mayoralty for the firm to supply gas at the rate of 5 MMSCFD as fuel for a local power plant.

The official said the South Sebuku I field holds an estinmated 20 BCF in gas reserve.

The firm and partners struck gas at the field during exploration last year. Medco is the block?s operator with 35 percent interest. Its partners are Thai oil, gas firm PPTEP (40%) and UK firm Salamander Energy (25%). (Godang)