Minister rejects Kasuri block POD
Wednesday, August 9 2017 - 05:10 AM WIB
Minister of Energy and Mineral Resources Ignasius Jonan has rejected the plan of development (POD) for the Asap-Kido-Merah (AKM) field project in Kasuri block, West Papua, proposed by Malaysia?s Genting Oil Kasuri Ltd (GOKL).
The minister has asked upstream oil and gas authority SKK Migas to recalculate the investment cost for the development of the AKM field as proposed in the POD.
?The POD for AKM has been returned by the minister to SKK Migas for recalculation,? said Tunggal, Upstream Director at the ministry?s Directorate General of Oil and Gas, to Petromindo.com on Wednesday, but did not provide further details.
Meanwhile, External Affairs Manager of GOKL, Listriyanto said that the POD was not rejected, but SKK Migas has been asked to make an audit into the sunk cost proposed by the company. The audit is currently underway, he added.
The SKK Migas has earlier approved the POD. Under the Indonesian regulation, first PoD must get final approval from the Minister of Energy and Mineral Resources.
A Petromindo source earlier said that the PoD called for production of 150-200MMCFD of gas, which will be dedicated to feed planned petrochemical or fertilizer plant.
Editing by Reiner Simanjuntak