House carefully examines BP?s request for Kangean contract extension

The House of Representatives (DPR) will carefully examine the requests from BP Plc for government approval to extend its Kangean production sharing contract (PSC) in East Java, a senior House member said on Wednesday.

?We need to be very careful in examining their request for contract extension,? said Julius Bobo, chairman of the energy and mining affairs sub-committee of DPR.

A special team of DPR members and government officials is continuing to study BP?s request that the government extend the Kangean PSC for another 20 years after it expires in 2010.

The government will make final decision on BP?s request based on the results of the team?s study.

BP said it intended to develop Terang Sirasun gas field in Kangean Block as gas reserves at the current Pagerungan field, located in the same block, is depleting, making it impossible for BP to supply enough natural gas to East Java.

BP said in October it could flow only 200 million standard cubic feet per day (MMCFD) of gas to East Java, and that the volume might drop to 150 MMCFD in 2003.

East Java?s total demand for gas presently reaches 400 MMCFD. (godang)