ConocoPhillips's Sumpal gas reserve lower than previously estimated: BPMIGAS

Oil and gas upstream regulator BPMIGAS and U.S oil, gas firm ConocoPhillips have agreed that gas reserve in Sumpal field of Corridor block, South Sumatra, reached 275 BCF, much lower than 900 BCF previously estimated.

BPMIGAS said that they needed to agree on the exact amount of the reserves to ensure the firm's ability to meet its gas sale commitment to Gas Singapore Pipe Line (GSPL).

?BPMIGAS and ConocoPhillips reached an agreement on the amount of the gas reserve in Sumpal. It?s 275 BCF as compared to 900 BCF previously estimated,? said BPMIGAS deputy chairman Hardiono on the sidelines of a seminar on national leadership in Jakarta over the weekend.

BPMIGAS, he said, saw that the gas reserve in Sumpal could be used to fulfill ConocoPhillips's gas supply commitment to GSPL starting in 2013.

?ConocoPhillips, therefore, can propose the Sumpal field to be included their WP&B soon,? he noted.

He also urged ConocoPhillips to soon develop Suban III field in order to meet the gas demand in Java. ?So far the gas for Java is supplied from Suban I and II. Now Suban III should be also developed to meet the domestic demand,? he said.

He said that while GSPL?s high gas price that had been set at US$12.93 per MMBTU would make ConocoPhillips prefer exporting its gas, the firm should not forget its obligation to meet domestic demand, despite the fact gas price on the local market is much lower. (godang)