Hess commences gas production from E. Java block

US oil firm Hess Corp. said Thursday that it had started this week supplying gas from Ujung Pangkah PSC offshore East Java to state electricity firm PLN?s Gresik power plant.

Hess Indonesia President and General Manager Colin Munro said that currently gas supply to Gresik is around 15-20 MMCFD from one well, and would ramp up to contracted volume of 100MMCFD within the next few months after drilling of three more producer wells are completed.

The gas is supplied under 20-year contract to PLN.

Initially, Ujung Pangkah will produce up to 5,000 barrel per day of condensate and would ramp up to up to 25,000 BPD of liquids in 2009 when second phase development to build crude production facilities are completed.

The block would also be producing 6,000 BPD of pressurized LPG late 2009 or early 2010 Munro said.

Munro said in January 17 2007 interview that Hess and partner would spend up to US$1 billion to fully develop Pangkah complex.

Hess has 75 percent interest in Pangkah PSC, with the balance held by ConocoPhillips. (alex/godang)