BPMIGAS urges Eni to submit Aceh gas block PoD

Indonesian upstream oil and gas authority BPMIGAS urged on Monday that Italian oil firm EnI SPA submitted Plan of Development (PoD) for Krueng Mane gas block offshore Aceh, or risk losing the block?s license.

?Up until now, Eni has yet submitted PoD for Krueng Mane gas development, If the deadline is lapse, the block?s exploration license will automatically be revoked,? BPMIGAS Chairman Kardaya Warnika told reporters.

The block?s exploration period will lapse in September 2009, 10 years after the block?s contract was signed.

Kardaya said Eni is welcome to ask for incentive to develop the block?s gas resources, but first it must submits PoD. Recent report has said that Eni is asking for better split than the current 30 percent it gets to make the block?s development more viable.

Krueng Mane is located approximately 50 km north of the Arun LNG plant. Eni has currently 100 percent interest in the block, but South Korean firm KOGAS is reportedly in the process of acquiring 15 percent stake at the block.

Krueng Mane block has proven undeveloped reserves of 183 billion cubic feet within the JAU Field and exploration potential of at least 4.5 trillion cubic feet reserves in the three main prospects (BSN, Safir & Emerald). (godang/alex)