Eni negotiates with Pupuk Kaltim on Jangkrik gas

By Godang Sitompul

Italian firm Eni Spa is negotiating with state owned fertilizer firm PT Pupuk Kaltim on a sales and purchasing agreement for gas from the Jangkrik fields in Muara Bakau PSC, East Kalimantan.

Eni wishes to allocate 85 mmscfd or 30 percent of future gas production from the fields for the fertilizer firm, according to Zudaldi Rafdi, chief spokesman of upstream authority SKK Migas, told Petromindo.com on Monday.

?The price (offered by Eni) is considered too high by Pupuk Kaltim. The negotiation is thus still ongoing,? he said.

Eni plans to export the rest of Jangkrik output and is cooperating with state owned oil and gas firm PT Pertamina to find buyers, he said.

Construction is now in progress at Muara Bakau to develop two fields, namely Jangkrik and Jangkrik North East. The fields are projected to start producing gas in 2017 with a combined volume of 450 mmscfd.

Editing by Johannes Simbolon