Hess delays inauguration of processing facility

Hess Indonesia, an Indonesian unit of U.S oil firm Hess Corp. aborted its plan to inaugurate the operation of onshore processing facility in Maspion Industrial Estate Gresik, East Java because of protest from local communities.

The onshore processing facility is part of Ujung Pangkah PSC, offshore East Java. Hess acts as operator with 75 percent interest in the PSC, with the balance held by Kuwait Foreign Petroleum Exploration Co (KUFPEC).

The protesters demanded the company fulfill its obligations, such as environmental impact analysis and community development program.

?We would strive to improve our weaknesses and study the demand,? Tino Ardiyanto, External Communications Supervisor of Hess Indonesia Pangkah in Gresik on Thursday as quoted by Antara news agency.

Meanwhile, Hess spokesman Josep Tobing said that production activity did not disturbed by the accident. ?Production is running as usual,? he said.

Currently, the block's gas supply to Gresik is around 15-20 MMCFD from one well, and the firm would ramp the block's contracted volume to 100MMCFD within the next few months after drilling three more producer wells.

The gas is supplied under a 20-year contract to state electricity firm PT PLN.

The block would also be producing 6,000 BPD of pressurized LPG late 2009 or early 2010, Hess Indonesia President and General Manager Colin Munro said in May 2007. (*)