Kerendan on schedule to deliver gas in H2 2016

By Romel S. Gurky

UK-firm Ophir Energy Plc announced on Thursday the Kerendan gas field in Bangkanai PSC in Central Kalimantan is on schedule for first gas in the second half of 2016.

Mechanical completion of gas processing facilities at the field is forecast to complete this month (August, 2015), at which point the facilities will be ready to deliver gas.

The offtaker, state owned electricity firm PT Perusahaan Listrik Negara (PLN), is making good progress and as at end June the transmission lines were 73 percent complete and the power plant 81 percent complete. Achieving mechanical completion now puts Ophir in a strong position to push for a conclusion to the gas price amendment to the initial gas sales agreement.

During the second half of 2015, upstream authority SKK Migas is expected to complete its reserves audit on the West Kerendan discovery.

The results of this report will enable Ophir to start marketing the next phase of the project and to mature some of the 470 Bcf of gross contingent resource to the 123 Bcf of gross 2P reserves, Ophir said.

Editing by Johannes Simbolon