Minister to sign Nunukan PoD next week

The Plan of Development (PoD) of Nunukan block in North Kalimantan has gained approval from the government and will be signed by Minister of Energy and Mineral Resources Sudirman Said next week, the Directorate General of Oil and Gas said in a statement on Thursday.

Djoko Siswanto, Director for the Management of Upstream Activities at the directorate general, said the development of Nunukan block should be considered as something historic for Indonesia as for the first time in the country?s history, a deepwater block will be operated by a local company, which is state owned oil and gas firm PT Pertamina (Persero)

?This is a strategic project. We shall show that Indonesia or Pertamina is able to do it,? Djoko said.

Since the block is situated in a sea zone bordering Malaysia, the development of the block should also be considered something significant in terms of politics. ?We?ll show we are able to do activities in areas bordering Malaysia. Malaysia should stop claiming our territories,? Djoko said, adding that the North Kalimantan provincial administration supports the project.

The block will produce 60 mmscfd of gas and 1,800 bpd of oil. All the output will be absorbed by PT Pertagas and will be used for power generation and petrochemical production.

The block is operated by PT Pertamina Hulu Energi which has 66.67 percent of the block. Its partners are Indian firms Videocon Industries (20.83 percent) and Bharat PetroResources Ltd. (12.50 percent).

Editing by Johannes Simbolon