Gas from ENI?s Krueng Mane block likely sold to LNG Arun

Gas production from Krueng Mane PSC offshore Aceh, developed by Italy?s ENI SpA, could be allocated to LNG Arun plant, Evita H. Legowo, Director General for Oil and Gas at the Energy and Mineral Resources Ministry, said.

Evita's statement cleared the air after there has been uncertainty as to where the block's output will be delivered.

Gas production from the block is estimated at between 200 mmscfd and 250 mmscfd. The PoD does not stipulate domestic market.

Initial gas production of the block is expected to take place in 2013.

Krueng Mane is located approximately 50 km north of the Arun LNG plant. Eni has 100 percent interest in the block.

Krueng Mane 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).(bernard)