Indrillco to develop UDR gas field
Friday, April 25 2014 - 03:31 AM WIB
KSO Pertamina EP-Indrillco Hulu Energy Limited is currently working to revise plan of development and is in negotiation with buyers for Uno, Dos and Rayu (UDR) gas field onshore South Sumatra.
Director Wargono Soenarko told Petromindo.Com that the previous PoD submitted to Pertamina EP and SKKMigas was turned down and the company was asked to make revision to the PoD.
Soenarko said the UDR field will be able to produce 10MMCFD of gas for 10 years with 45 BCF of recoverable reserves.
Currently the company is in talks with PT Meppo-Gen, which operates the Gunung Megang IPP power plant, state electricity firm PLN and Pertamina EP.
Soenarko estimated that gas selling price to Meppo-Gen will be around US$6.1 per mmbtu, while Pertamina EP and PLN are estimated to buy at price of $5.7 per mmbtu and 5.3 per mmbtu, respectively. ?We will pick buyer with best price,? he said.
Soenarko urged SKKMigas and the ministry of energy to quickly approve gas allocation for UDR field.
According to him, the company has spent $20 million on the UDR for the past 6 years and has drilled 9 well out of 12-well commitment.
Under the KSO system, Indrillco operates the field which is owned by Pertamina EP based on production sharing system.
Indrillco is owned by Indonesian businessman Mohamad Bawazeer.
Editing by Alexander Ginting