First gas from Jambi Merang delayed to mid 2011

PT Pertamina Hulu Energi (PHE) said on Wednesday that its unit PHE Jambi Merang JOB has delayed first gas production plan to mid 2011.

PHE's operation director Eddy Purnomo told Petromindo.Com that until now, the Jambi Merang block was still unable to produce gas because of one of the equipment needed by its gas plant in Kenawang river hasn't arrived yet.

Last month, PHE announced that the block is expected to start producing gas on Dec. 10. PHE has also signed US$577 millions gas supply deals with three customers, including Indonesian unit of US giant Chevron Corp.

The Jambi Merang block, located onshore South Sumatra, will produce 60MMCFD of gas in the first phase and ramp up the output to 120MMCFD in July 2011, PHE said in Nov. 2.

PHE has a 50 percent interest in Jambi Merang with Canadian oil, gas firm Talisman Energy and Hong Kong-based firm Pacific Oil & Gas equally owning the balance. (bernard)