ENI interested to develop N. Sumatra gas field to supply PIM
Friday, July 1 2005 - 01:40 AM WIB
?ENI said it was ready to develop its gas reserves provided that it was given special incentives, but they has yet come into specific terms,? BPMIGAS deputy chairman Zanial Achmad told reporters.
Zanial said gas supply from Krueng Mane would complement the planned gas supply from ConocoPhillips-operated Block A gas block. PIM is in dire need of gas supply as ExxonMobil?s Aceh gas fields declining output is dedicated to supply gas to Aceh Arun LNG plant.
Zanial said ENI has some 200 BCF of reserves in Krueng Mane.
Zanial said he did not know yet whether marginal field gas incentives should be given to Krueng Mane. ?We do not know yet if this is a marginal field. They need to certify the reserves and submit a plan of development.?
A marginal field is a gas field that is not economically viable to develop using standard terms and split. The government had introduces incentives package to encourage contractors to develop their marginal gas fields for domestic use by giving them more favorable terms and split.
The Krueng Mane Block is located offshore northern Sumatra approximately 50km north of the Arun LNG plant. Water depths range form 400m to 1350m. This block was signed in September 1999 and extends across part of an old Inpex block that was relinquished in 1996. ENI has 100 percent interest in the block.(godang)