Medco says Singa gas field start-up pushed back to December

Medco E&P Indonesia, a unit of IDX-listed energy firm PT Medco Energi Internasional Tbk said gas from Singa field in Lematang PSC onshore South Sumatra would start production mid-December, a few month behind original schedule.

President Director Budi Basuki told Petromindo.Com on Wednesday that the delay was caused by technical problems at Singa-3 well. ?Production facilities had been completed and already been commissioned,? he said.

Budi said initial production from Singa would be at about 25MMCFD, ramping up to 50-MMCFD from March-April 2010.

Medco has clinched deal to supply 50MMCFD of PLN?s power plant in West Java for 9 years, but PLN is not able to immediately offtake Singa gas due to capacity constraint at Sumatra to Java pipeline, from which Singa gas would be transported to West Java.

It?s not immediately clear if Singa gas could be immediately piped to PLN or being temporarily sold to Chevron?s steamflood facility in Duri through a pipeline operated by state gas distribution firm PGN.

Medco has 74% percent stake at Lematang with Swedish independent Lundin Petroleum controlling the balance. (bernard)