ENI seeks to change split of N. Sumatra gas block

Italian oil company ENI SpA is asking the government to change the split of Krueng Mane gas block offshore Malacca Strait-Sea in North Sumatra in order to be able to economically exploit the block?s gas reserves, a BPMIGAS official said.

The official, who declined to be identified, said that ENI is asking BPMIGAS to endorse the change of split in the company?s favor from 35:65 currently to 50:50.

Gas from Krueng Mane is planned to be piped to Aceh fertilizer plant PT. Pupuk Iskandar Muda (PIM). The source said ENI also ask for at least US$4.5 per MMBTU price for the gas.

The official did not say whether BPMIGAS has agreed to endorse ENI?s plan. The official stated that under current development plant, ENI might be able to deliver 120 MMCFD to PIM. However, thus far, no formal talks have been reported on gas negotiation between ENI and PIM.

Krueng Mane exploration block, which was signed in September 1999, is located approximately 50 km north of the Arun LNG (liquefied natural gas) plant. ENI has 100 percent interest in the block.

According to ENI, this block has proven undeveloped reserves of 183 billion cubic feet within the JAU Field and exploration potential of at least 4.5 trillion cubic feet reserves in the three main prospects (BSN, Safir & Emerald). (godang)