Gas production at Pagerungan field to be increased to 150-200 MMCFD

Gas producer PT Energi Mega Persada will increase its gas production at the Pagerungan field of the Kangean block in East Java from 105 million cubic feet per day (MMCFD) to between 150 and 200 MMCFD in 2005, Kompas reported on Saturday.

President director of the oil field operator, Rennier Latief said in Surabaya on Friday that the production would further be increased to 300 MMCFD by the year 2008 to meet the rise in the demand.

"Beginning from January to August, total production at the Pagerungan field reached 105 MMCFD. All of the production are supplied to Petrokimia, PLN Gresik and PGN," he was quoted as saying.

He said that the gas demand in East Java had reached a total of 600 MMCFD but the available supply was only between 230 and 250 MMCFD, mostly from Kodeco, Kangean and Lapindo Brantas.

Rennier said that the development of Lapindo Brantas and Kangean fields was expected to further add the gas supply by between 400 and 450 MMCFD.

Early in August, Energi Mega through Energi Mega Pratama Inc won a tender to take over the Kangean gas block in East Java from operator BP Indonesia for US$165 million. (*)