BPMIGAS okays ENI?s PoD

The upstream oil and gas authority BPMIGAS has approved plan of development (PoD) of a gas field operated by Italy-based ENI SpA.

BPMIGAS spokesman Elan Biantoro said the block in question was the Jambu Air Utara field in Krueng Mane PSC, offshore Aceh.

ENI will sign an agreement on joint facility use with NSO facilities run by Aceh unit of US giant Exxon Mobil Corp. Gas from the block will be tied-in to NSO and supplied to Arun gas facilities, he said.

Gas production from the block is estimated at between 200 mmscfd and 250 mmscfd. The PoD does not stipulate domestic market.

?That?s why we ask for the domestic supply portion. To make it economically feasible, the gas price must be set at US$5 per mmbtu,? Elan said.

Initial gas production of the block is expected to take place in 2013.

The PoD, however, would still need further approval from the MInistry of Energy and Mineral Resources as stipulated by Oil and Gas Law for first PoD.

Elan did not give detail where the gas would be sold to.(Bernard)