Gulf Indonesia sees potential to increase gas sales
Friday, April 19 2002 - 02:42 AM WIB
?We?re looking at the number of different markets. There are reasonable size of power generation and industrial market in South Sumatra and Jambi. Malaysian peninsular also has the potential,? said Gulf Indonesia President and CEO Paul C. Warwick in an interview.
?However, the jewel of the crown is probably West Java. If the South Sumatra-West Java gas pipeline that state gas company PGN plans to build materialized, West Java demand could be huge.?
PGN plans to build gas pipeline that links gas producers in South Sumatra to industrial provinces in the western part of Java. The pipeline is scheduled to be completed within the next few years.
Gulf Indonesia is currently selling gas to Caltex?s steamflood facilities in Duri through Grissik Duri pipeline and together with South Sumatra gas producers had secured contract to supply gas to Singapore starting 2003. It had just signed an MoU to supply gas to industrial island of Batam.
Gulf Indonesia together with state oil and gas company Pertamina is currently negotiating with Malaysia?s Petronas to supply gas to peninsular Malaysia. The deal is expected to be completed within months.
?What we are trying to do now is to balance all those potential area so that we don?t just take them sequentially. We?re doing five or six sales prospecting simultaneously and recognizing that not all of them are going to happen because other gas producers are also eyeing the same market and some of the potential markets may not materialize at all,? said Warwick.
Gulf Indonesia, a 72 percent subsidiary of Conoco Canada Resources, is currently the country?s largest non-LNG gas producer with current production reaches some 42,000 BOEPD from its contracts areas in Jambi, South Sumatra and offshore West Natuna. Warwick said Gulf targets to double production by 2005. (alex)