Medco and Rolls Royce eye gas project in South Sulawesi

PT Medco Energi Internasional and the Uinted Kingdom-based electricity equipment producer PT Rolls Royce have expressed a strong commitment to develop natural gas project in Wajo, South Sulawesi, Bisnis Indonesia reported on Monday.

The head of the provincial development planning agency (Bappeda) of Wajo regency, Firmansyah, said in Makassar over the weekend that the two companies were still negotiating the development of the gas field in the regency.

"We have met for at least three times to talk over the plan, and we are now preparing a memorandum of understanding for the project," he was quoted as saying. He added that the two companies would then forge out possible cooperation with PT Energy Equity Sengkang (EES), which has the rights to explore and produce the gas field in the area.

EES has been awarded to develop the gas field to support its 135 MW power plant. Medco and Rolls Royce would be allowed to join the development of the gas field, because its gas deposit would be more than sufficient to meet the need of the existing power plant.

"The available gas deposits are sufficient enough to generate electricity of up to 300 MW. So there will be an excess of oil deposit although EES plans to increase the capacity of its power plant by 65 MW," he said. (*)