'Govt is evaluating proposed extension of Kangean contract'
Thursday, June 12 2003 - 03:50 AM WIB
The government is still studying a recommendation from upstream oil and gas authority BPMIGAS that BP Indonesia?s contract for Kangean Block in East Java be extended, BPMIGAS chairman Rachmat Sudibjo said Thursday.
?The oil and gas directorate general is evaluating our recommendation,? Rachmat told a parliamentary hearing.
Rachmat said that the BP Migas recommendation had taken into account several aspects such as state oil and gas revenue and the continuity of gas supply in East Java.
BP Indonesia had requested the government to extend for another 20 years its Kangean contract, which will expire in 2010. The company said it would develop Kangean?s Terang Sirasun gas field if the government fulfilled its request.
The company currently operates Pagerungan gas field, which supplies gas to East Java. Gas reserves in the field is depleting. (godang)