Early decline in BP East Java gas output feared

BP?s gas production from the Kangean field in East Java may already drop by February or March 2002, earlier than the initial projection of August or September, the Neraca daily reported Friday.

The paper said that the cause for the premature drop had not been detected, although sources said that it could be natural cause. The paper said that it was possible that there was a mistake in the calculation of the exact amount of gas reserves.

Neraca said that several of BP main gas customers in Irian Jaya have taken measures to anticipate the early drop in gas supply.

Power company PT PJB, a unit of the state-owned electricity company PLN, had seek for new suppliers to cover the shortage. Company official said that PJB had bee negotiating with Lapindo Brantas and Kodeco. PJB, which is BP?s largest gas customer in East Java, currently receives around 242 million standard cubic feet of gas from BP out of the total 325 million cubic feet need.(*)