Kodeco temporarily stops E.Java gas pipeline installation project

Korea Development Co Ltd. (Kodeco) has been forced to temporarily stop the installation of gas pipeline in Bouy 6, Madura Strait following a protest from the users and operators of the Tanjung Perak seaport, Surabaya, East Java.

The firm is building a 70-km pipeline linking its onshore receiving facility (ORF) in Gresik to its offshore facility at Poleng field.

Investor Daily said that users and operators of Tanjung Perak seaport expressed their objection to the installation of the gas pipeline, saying the works had hampered ships anchoring at the seaport.

Wisnu Wahjusaputra, Project Manager of PT Merlasakti Abadi, a contractor of the project, said in Surabaya on Tuesday that the temporary stoppage has caused the company to suffer US$200,000 in losses per day.

When asked for comments, oil and gas upstream authority BPMIGAS's spokesman Amir Hamzah told Petromindo.Com on Wednesday that the agency has yet to receive a report from Kodeco about the case.

"I can't confirm the news report. We are investigating the case. BPMIGAS expects to receive a report from Kodeco today," he said.

He noted that the project has been approved by BPMIGAS and Kodeco had received permits from the Tanjung Perak and Gresik port operators to carry out the project.

The Poleng field is operated by Korea development Co, ltd under a Technical Assistance Agreement (TAC) with state-owned oil and gas firm Pertamina. (*)