Govt asks Santos to conduct repair on the spot

The government has asked Australian oil, gas firm Santos to repair its broken jack-up platform in the Maleo offshore gas field on location rather than at onshore maintenance facilities in order to prevent shutdown.

?With repair work conducted on the spot, gas supply can continually flow. Even if there is a gas disruption, it will just last a few days,? director general oil and gas Evita Legowo said on Wednesday.

The spokesman of upstream oil, gas regulator BPMIGAS, Gde Pradnyana, technically, underwater repairing is possible.

Earlier, secretary general of the forum of industrial gas users Achmad Widjaya said he had received a letter from Santos on the planned cut in the gas supply. He said Santos would cut down the gas supply by 110 million standard cubic feet per day (mmscfd) from 250 mmscfd at present.

Santos said it would carry the repair works in two stages, with the first stage to be carried out for 15 days from April through May, which will lead to a shut-down and the second stage in the first quarter, next year.

?As the consequence, gas supply of 110 mmcfd for industrial users in Surabaya and surrounding areas will be suspended,? Achmad added.

?We hope we will be able to receive gas according to quota to enables to increase production capacity. There is no indication yet that the government will settle the gas supply problem,? he added.

BPMIGAS' spokesperson Elan Biantoro has confirmed that that the jack-up platform of Maleo had a "fracture" which made it dangerous for Santos to continue operation.

At present, the East Java province receive a total gas supply of 250 mmcfd, including 110 mmcfd from santos. The other suppliers are Kodeco Energy (33 mmscfd), Lapindo Brantas (3 mmcfd) and other production sharing contractors. (Bernard)