ConocoPhillips to start producing gas in Aceh in 2010
Monday, August 7 2006 - 07:30 AM WIB
Purnomo said the government actually wanted the block to start pumping gas in 2009 to supply PIM that has been forced to cut production owing to a lack of gas.
Yet, ConocoPhillips needed more time to discuss the project with its new partners, Purnomo said after a meeting with ConocoPhillips officials, including ConocoPhilips? Chief Exec. Officer James J. Mulva, and Vice President Jusuf Kalla.
?The gas from Bock A will be used for PIM,? Purnomo said.
The government would be flexible in negotiating the share of the gas between itself and the contractors, he said. ?The split may change, depending on negotiations?' on the gas prices between ConocoPhillips and PIM, Purnomo said.
In June last year, Houston-based ConocoPhillips, the operator of the area, and its partner at the time, Exxon-Mobil Corp., won an increase in the contractors' share of Block A to 48 percent from 40 percent. It hasn't developed the field so far because it said the high carbon dioxide content makes gas production unprofitable.
ConocoPhillips has new partners in the onshore gas field after Exxon Mobil in April sold its 50 percent stake to PT Medco Energi Internasional, Indonesia's largest publicly traded oil company, Japan Petroleum Exploration Co., and Premier Oil Plc.
Block A is believed to contain gas reserves of between 500 and 600 billion cubic feet of gas.
Purnomo also said the government would ask ENI to supply gas from its Kreung Mane field to PIM. The field is believed to contain 1 trillion cubic feet of gas.
Until after Block A and Krueng Mane start production at their fields, PIM will get gas supplies from East Kalimantan in a swap deal with state-owned fertilizer firm PT Pupuk Kaltim.
?Gas supplies to Japanese buyers (from East Kalimantan) will be reduced,? Purnomo said. (Godang)