BPMIGAS sends facts finding team to Total
Thursday, April 19 2012 - 06:13 AM WIB
Upstream Authority BPMIGAS has sent a team to discuss with Total E&P Indonesie (Total) about the cause of gas production decline from Mahakam Block that has affected the production of liquefied natural gas (LNG) plant in Bontang, East Kalimantan
?We?re going to meet Total. We?ll find out why their production is not on target, although we?ve approved all scenarios of costs,? BPMIGAS Chairman R. Priyono told Petromindo.com.
BPMIGAS, he said, wanted to know from Total why its gas production from Mahakam Block has declined lately. "The company has informed all buyers on the gas production decline," he said.
Daniel Syahputra Purba, Vice President for Gas & Power technology of state oil and gas company PT Pertamina, said that this year LNG production from Badak NGL would be 212 cargoes, which are lower than the 230 cargoes planned before. The decline was reportedly caused by the decrease of gas production in the field.
Meanwhile, the production of LPG this year will be 635,000 tons, which all are for domestic market.
Previously, BPMIGAS Operational Deputy Rudi Rubiandini said in Jakarta that production of LNG from Bontang plant could fall by between 18 and 20 cargoes this year due to the decline of gas production from the Mahakam block.
He said that gas production from Mahakam would decrease from the target of 2,020 MMSCFD to only 1,800 MMSCFD. ?The decline of gas supply will cause the LNG production to drop between 18 and 20 cargoes, he said. According to Total, the decline was caused by a problem with their rig at the Tunu field. "But after we studied more closely, there was the possibility that the reservoir had aged so that production fell," he explained.
He pointed out that Total had to conduct more studies to identify the real causes of the production decline before determining its course of action. "If the problems are technical, the company has to take all necessary measures to increase production up to the target. But if it is due to its aging problem, it?s only natural, then all we can do is to ensure that the decline is not that significant" he added.
Editing by Benget Besalicto Tnb.