BPMIGAS, DPR to further deliberate BP?s request for Kangean contract

The House of Representatives (DPR) remains cautious over BP?s request to extend its production-sharing contract for Kangean Block offshore East Java, while stressing the urgency of supplying enough natural gas to the province.

?Basically, we are willing to support the contract extension request. But, we have yet to study technical aspects to be submitted by BPMIGAS,? Saul de Ornay, a member of DPR?s Commission VIII in charge of energy and mineral resources, told Petromindo.com Wednesday immediately after attending a meeting between the House commission with BP Indonesia leaders.

BPMIGAS is the oil and gas upstream authority.

Saul said his commission would meet with BPMIGAS officials next week.

He said legislators were well aware of gas supply shortage in East Java, which had disrupted the operation of area power plants and industries including fertilizer plants and a copper smelting plant owned by PT Freeport Indonesia.

The gas supply shortage was caused by a decline in gas reserve depletion in Kangean?s Pagerungan field.

BP Indonesia had requested the government to extend for another 20 years its Kangean Block contract so that it could develop Terang Sirasun field, which is also located in the same block. The contract will expire in 2010.

BPMIGAS officials had submitted recommendations to the government to extend the Kangean Block contract, with House approval according to existing laws. (godang)