Buyers urge govt to allocate IDD, Jangkrik gas for domestic market
Monday, January 30 2012 - 01:55 AM WIB
Domestic buyers are reportedly pushing the government and the upstream authority BPMIGAS to allocate all gas from the Indonesian Deepwater Development (IDD) project in Makassar Strait, offshore East Kalimantan, operated by Chevron Corp, and Jangkrik field operated by Eni Spa to domestic buyers.
?All gas could be allocated for domestic buyers as long as they buy in line with commercial price (market price),? a senior official at the upstream authority BPMIGAS who declined to be named told Petromindo.com. The source said the other condition is that the Floating Storage and Regasification Unit (FSRU) should be in place.
Petromindo.com source said earlier that state oil and gas company PT Pertamina, state electricity company PT PLN and fertilizer plants have pushed BPMIGAS and Director General for Oil and Gas at the Energy and Mineral Resources (ESDM) Ministry to allocate all LNG from the two major gas projects to domestic buyers.
The IDD gas project, which consists of a number of fields including Gendalo and Gehem, has water depths of approximately 6,000 feet. The project will include two separate hub developments, each with its own floating production unit (FPU), subsea drill centers, export gas and condensate pipelines and an onshore receiving facility.
Gas from the IDD project was initially aimed to meet domestic market demand and also converted to liquefied natural gas (LNG) at the Bontang LNG facility before it is exported. Maximum daily production from the project is expected to be 1.1 billion cubic feet of natural gas and 31,000 barrels of condensate.
BPMIGAS has said earlier it expects the IDD gas project to begin commercial production in January 2015.
Meanwhile, Jangkrik field is located in Muara Bakau PSC, Kutai basin, offshore East Kalimantan.
Eni, through its Indonesian subsidiary Eni Muara Bakau B.V, is the operator of Muara Bakau PSC with a 55 percent interest, with GDF Suez holding the remaining 45 percent.
Editing by Roffie Kurniawan