Chevron forced to curtail operation due to gas supply stoppage

PT Chevron Pacific Indonesia (CPI), Indonesian largest oil producer, has been forced to cut its operation in Riau due to the stoppage of gas supplies through the pipeline owned by PT Transportasi Gas Indonesia (TGI)

"CPI has been forced to partialy stop production operation due to the stoppage of gas supplies from ConocoPhillips since Wednesday," Yanto Sianipar, CPI's senior officiala, told Petromindo.com.

"Our cogeneration power plant has stopped operation due to lack of gas supplies. The only gas available is sourced from our field, which is limited in amount. Gas supplies to Duri (oil field) have also completely stopped," he said.

Gas plays a vital role in Duri since the field uses waterflooding technique in oil production process.

TGI, a subsidiary of state owned gas distributor PT Perusahaan Gas Negara, earlier announced that it had, since Wednesday, shut down the pipeline that channels gas from ConocoPhillip's gas field in Grissik in South Sumatra to Duri following a gas leak incident.

The gas leaks occurred at two sectional valves on Wednesday morning, causing panic among villagers in Kampung Sawah, Indragiri Hulu regency, Riau. TGI soon evacuated the villagers and brought them back to the village after stopping gas flow in the pipeline.

?At present, a recovery plan is being implemented by experts from all TGI shareholders. The pipeline is expected to resume normal operation within three days,? the firm said.

TGI is 59.87 percent owned by PGN, 40 percent by Transasia Pipeline Company Pvt. Ltd and 0.13 percent by PGN?s pension fund YKPP Gas Negara. Transasia is jointly owned by Petronas, ConocoPhillips, Singapore Petroleum and Talisman Energy. (godang)