Jangkrik?s GSA to be signed at IPA?s event
Friday, May 15 2015 - 07:13 AM WIB
The Ministry of Energy and Mineral Resources Italian firm Eni SpA and state owned oil and gas firm PT Pertamina (Persero) to sign Gas Sales and Agreement (GSA) on gas supplies from the Jangkrik field in Muara Bakau block, East Kalimantan during the incoming Indonesia Petroleum Association (IPA) convention.
The convention is scheduled to be held on May20-22 in Jakarta.
?Currently the GSA document is being finalized,? Director of Oil and Gas Program Development at the Directorate General of Oil and Gas Agus Cahyono Adi told Petromindo.com.
He did not provide in details about the gas price.
Head of Gas Commerce Division at upstream authority SKK Migas Arief Riyanto confirmed that his agency and the ministry are working hard so that the Jangkrik?s GSA can be signed at IPA event.
"It is planned that a volume of 1.4 mtpa will be allocated to domestic buyer, namely Pertamina,? he said.
Pertamina Upstream Director Syamsu Alam said earlier that his company wanted to offtake 2.4 mtpa of gas from the Jangkrik fields.
"Initially, only 1.4 mtpa was allocated to the domestic market. So we try to increase the domestic allocation to 2.4 mtpa," he said.
Previously, SKK Migas said that gas production from the fields will be large enough, reaching 2.7 mtpa. Construction is now in progress at Muara Bakau to develop two fields, namely Jangkrik and Jangkrik North East.
According to Arief, the fields are projected to start producing gas in 2018 with a combined volume of 450 mmscfd.
Editing by Johannes Simbolon