New POD for C. Sulawesi gas block unnecessary: Pertamina

State oil and gas firm PT Pertamina said submitting a new plan of development (PoD) for the development of Senoro-Toili gas block in Central Sulawesi was not necessary.

 

Pertamina’s deputy president director Iin Arifin Takhyan said in Jakarta on Thursday that the change in the utilization of gas from the block would not be significant given the small volume of the gas to be purchased by local companies.

 

“There is no need to change in the P0D due to the insignificant change in the utilization of the gas. We can ensure a sufficient gas supply for domestic needs from the block and there won’t be any dispute (that might be caused by the Pertamina’s inability of meeting the contract) in the future,” he said.

 

Earlier, oil and gas upstream regulator BPMIGAS called on Pertamina and Medco EP, a unit of JSX-listed energy firm PT. Medco Energi Internasional Tbk, to submit a PoD for the development of the block.

 

Achmad Luthfi, BPMIGAS deputy chairman for planning said that the PoD submitted earlier  should be replaced with the new one if Pertamina and its partner Medco wanted to change the allocation for the gas production.

 

Last year, Pertamina and Medco had appointed Japan’s Mitsubishi Corp. to build and operate an LNG plant in the area.The LNG plant is slated to commence production in between 2009 and 2010.

 

The plant will receive gas from Pertamina-operated Donggi block, which is operated by Pertamina, and Senoro Toili block operated by Pertamina and Medco. Both blocks have combined proven and certified gas reserves of 2.3TCF. (godang)