E. Java govt supports development of Terang Sirasun gas field
Friday, May 3 2002 - 03:49 AM WIB
?Developing gas resources is important for East Java to help accelerating industry growth and to increase the region?s income. East Java government and legislative council had in principle supported the development of the new gas field in a bid to solve the acute shortage of gas supply,? said Imam Soekardi, East Java deputy government on Wednesday.
He said that the local authority would also help BP to lobby the central government to extend its oil and gas concession contract, which would expire in 2010. "Although the rights to extend the contract are at the hand of the central government, we will help BP to get its contract extended," he added.
"We have talked the matter with Coordinating Minister of Economy, and Minister of Energy and Mineral Resources, and they support our program," he said.
BP had sought early contract extension of Kangean PSC, which will expire in 2010 to enable the company to develop Terang-Sirasun gas field. Terang Sirasun has 1 trillion cubic feet of reserve and could be developed to flow some 350 MMCFD of gas to East Java. But BP?s proposal to seek for early extension had yet been granted.
Meanwhile, Agusman Efendi, deputy chief of Commission VIII of the House of Representative which oversees oil and gas industry said that the House would support development of East Java gas resources, including the possible contract extension of Kangean PSC.
?East Java is facing severe gas supply shortage now and in the coming years. Therefore every effort to develop gas resources will be supported,? he said.
As reported earlier, East Java gas supply was short as production from the company?s Pengerungan field, which is also located within Kangean PSC, has dropped from more than 300 million cubic feet per day (MMCFD) to only 260 MMCFD. This has caused a sharp decline in the gas supply to both household and industrial users in the province, which need gas supply of at least 280 million cubic feet per day.
East Java gas buyers fertilizer maker Petrokimia Gresik, state electricity firm PLN and state gas distribution firm PGN currently need some 400 MMCFD of gas. Another gas suppliers are Lapindo Brantas and Kodeco, which supply some 40 MMCFD, combined.
Meanwhile, Agusman Efendi, deputy chief of Commission VIII of the House of Representative which oversees oil and gas industry said that the House would support development of East Java gas resources, including the possible contract extension of Kangean PSC.
?East Java is facing severe gas supply shortage now and in the coming years. Therefore every effort to develop gas resources will be supported,? he said. (alex)