Govt reviews gas allocation of Eni?s Jangkrik field

By Febry Silaban

The Ministry of Energy and Mineral Resources is reviewing the allocation of gas from Jangkrik field of Muara Bakau block in East Kalimantan, according to a senior official of the ministry.

?The approval process for the gas allocation of Muara Bakau block is in progress. Many things are being reviewed as oil prices is falling,? Acting Director General of Oil and Gas at the ministry I Gusti Nyoman Wiratmadja told Petromindo.com.

An industry source said that Italian oil and gas firm Eni SpA which operates the block has sent a letter to the ministry in which it proposed gas allocation for the block and asked approval from the ministry.

Under the Plan of Development, 70 percent of the gas in the form of LNG will be exported, with the remaining 30 percent allocated for the domestic market to meet the gas needs of power plants and industries in East Kalimantan, Java, South Sumatra, central Sumatra, North Sumatra and Aceh. Nevertheless, SKK Migas and Eni have agreed to raise the domestic market portion to 47 percent.

Editing by Johannes Simbolon