Conoco to stop LPG production in Belanak field

By Bernard Loebs

American firm ConocoPhillips will stop producing LPG from Belanak field within South Natuna Sea Block B PSC in Riau Archiepalago province for economic reason, upstream authority SKK Migas said on Tuesday.

The firm won?t thus extend the existing contract on Gas Concord LPG FSO used at the field after its expiry at the end of this year.

?Due to economic reason, Belanak field will no longer produce LPG starting at end of this year. But gas production will continue,? SKK Migas? Operation Control Division Head Baris Sitorus said.

Sources said Conoco is now holding tender to select contractors for the decommissioning and demobilization of the facilities. The decommissioning and demobilization works will take six months.

The South Natuna Sea Block B PSC is operated and 40 percent owned by ConocoPhillips in partnership with Inpex and Chevron which have interest of 35 percent and 25 percent, respectively. Aside from Belanak, the block have several other fields, namely South Belut, Belida, Tembang, Hiu, Kerisi, North Belut and Bawal. Natural gas produced from the block is sold to Singapore and Malaysia via the West Natuna Transportation System Gas Pipeline

Earlier reports said Conoco was seeking to sell its interest in the block and had shortlisted four potential buyers.

Editing by Johannes Simbolon