Central Kalimantan wants an interest in Salamander?s block

By Nellawati

The Central Kalimantan provincial administration wants to have a 10 percent participating interest in the Bangkanai block, Central Kalimantan, which is operated by UK firm Salamander Energy Plc, upstream authority SKK Migas said on Tuesday.

The wish was expressed by Central Kalimantan?s Vice Governor Achmadiran during a meeting at the end of August in the provincial capital of Palangkaraya with SKK Migas? Chief Representative for Kalimantan and Sulawesi regions Ngatijan, and the Salamander officials.

During the meeting, Achmadiran queried about the mechanism that the province has to go through to acquire the interest, SKK Migas said in a statement.

Ngatijan appreciated the province?s intention and promised that SKK Migas will facilitate for the province to realize its intention.

Governmental Regulation No. 35/2004 on Oil and Gas Upstream Business Activities Chapter 34 Article 35 stipulates Indonesian Participating Interest (PI) amounts to 10 percent. PSC holders have to offer the PI to the regional administration-owned companies (BUMD) or the company appointed by the regional administrations or national companies appointed by the central government after the first Plan of Development (Pod) has been approved by the Ministry of Energy and Mineral Resources.

Salamander is the operator of the Bangkanai block with a 70 percent interest, while the remainder is held by PT Saka Energi Indonesia, a unit of Indonesia?s state-owned gas distribution firm PGN.

The UK firm recently said that drilling works at four development wells in the Kerendan gas field within the Bangkanai PSC have been completed and tested at a combined rate exceeding 40 mmscfd.

Editing by Johannes Simbolon