ConocoPhillips focuses Indonesian activities in three areas
Tuesday, October 14 2003 - 07:35 AM WIB
?In line with increase in size after becoming ConocoPhillips, we will focus our attention to develop our assets in the three areas, ?said ConocoPhillips Indonesia president Paul Warwick in an interview on a sideline of IPA convention.
Warwick said development works in Natuna Block B offshore Natuna are progressing well, with giant Belanak floating production, storage and offloading (FPSO) project is expected to be completed in the second quarter of 2005.
Once completed, The Belanak FPSO will be expected to be able to produce 100,000 barrels of oil per day and to process up to 400 MMCFD of natural gas top fulfill commitment to Singaporean an Malaysian buyers.
Warwick also said the company is waiting for government approval to develop Kerissi oilfield in Natuna Block B.
He also added that ConocoPhillips is currently developing its Corridor Block PSC onshore South Sumatra to be able to supply commitments to buyers, which include ChevronTexaco?s Caltex Pacific Indonesia, Singapore?s PowerGas, and future commitment to supply gas to West Java. ?We will also continue to find new market for South Sumatra gas,? said Warwick. ConocoPhillips is reportedly in talk with Malaysian oil company Petronas to sell gas to Malaysia and is also in talks with state electricity firm PLN to sell gas to North Sumatra.
The third area of focus is offshore East Java, where the company operates Ketapang block with significant oil discovery. Warwick said ConocoPhillips would drill two appraisal wells in Ketapang block later this year.
Industry sources said that ConocoPhillips is trying to shed some of less significant assets in Indonesia, which do not meet the company?s economic hurdle. In the past year, Conoco had sold its interest in Makassar Strait Sebuku PSC offshore East Kalimantan to Singapore-based Pearl Oil, and had recently close sale of its interest in Kakap PSC offshore Natuna to local firm Star Energy. ConocoPhillips is reportedly trying to sell some more of its Indonesian assets, and is in talks with buyers. (alex)
