Govt to extend contracts on Block A, Madura block, South Sumatra Extension block
Eni asked to submit PoD for Bukat PSC
Monday, January 19 2009 - 04:38 AM WIB
The official, who wanted to remain anonymous, said the contract extensions could be signed within days.
"The government or BPMIGAS (oil and gas upstream authority) has agreed to extend their contracts. Each of the contracts will be extended for another 20 years," he told Petromindo.com.
The SSE block section is part of the South and Central Sumatra PSC, wholly owned by PT Medco E&P Sumatra, while Block A is owned by a consortium of Medco, Premier Oil and Japex. Meanwhile, Madura PSC is wholly owned by Husky Oil.
The SSE contract expires in 2013, Block A 2011, Madura Strait 2012.
The official also said the government has asked Italian firm Eni S.p.a to submit the plan of development (PoD) for Bukat PSC located on the Makassar Strait area bordering Malaysian territory.
"The BPMIGAS/government asks the firm to soon submit the PoD is because its 10-exploration permit will soon end. Furthermore, we can use it to strengthen Indonesia's position in talks to settle border dispute with Malaysia," the official said.
Bukat is situated near the Ambalat island which Malaysia claims as part of its territory. Indonesia however claims ownership of the island.
Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in October last year that the Bukat block is one of the largest gas fields in the country. It is believed to have gas reserves as large as those found in the Tangguh field in West Papua and the Masela block in Timor Sea.
He said that ENI planned to develop a floating liquefied natural gas (LNG) terminal to process the Bukat gas.
In September 2007, BPMIGAS estimates Eni had discovered recoverable oil reserves of 62 million barrels in the Aster field of the block.
Bukat is operated by Italian oil firm Eni SpA with 66.25 percent interest in Aster. U.S. oil firm Anadarko Petroleum has 33.75 percent interest in Aster. (Bernard).