Ophir starts partial gas delivery from Kerendan gas plant

UK-based firm Ophir Energy plc announced on Thursday it has started partial delivery of gas from Kerendan Gas Plant Facility (KGPF) located at Kerendan Village, Lahei District of North Barito, Central Kalimantan, to Bangkanai gas engine power plant (PLTMG) owned by state-owned electricity firm PT PLN.

The company said in a statement that the gas delivery is a milestone of Ophir Energy, along with its partner Saka Energy, as the first PSC producing gas in Central Kalimantan. Ophir operates the Kerendan gas field in Bangkanai PSC, with 70 percent interest, while Saka holds the remaining 30 percent.

?We are committed to contributing to energy provision in Indonesia, especially to support electricity in Kalimantan through our integrated activity with PLN?, said Anggoro Kasyanto, Ophir Energy Indonesia President, in the statement. Electricity production from Bangkanai will supply Central, South and East Kalimantan. For the local municipal of North Barito, this moment marks the entry of North Barito Regency to the circle of oil and gas producing region.

?Despite numerous challenges in the exploration, construction, and operational start-up stages the delivery of partial gas from KGPF to PLTMG Bangkanai demonstrates the readiness of our facilities technically and also from safety point of view, in advance of the full production at a maximum gas capacity of 20 MMSCFD,? the statement said.

Ophir Energy said it hopes that the partial gas delivery can be the starting point of the utilization of gas resources in North Barito, and further become the locomotive of the establishment of industrial activities in this Regency, in line with its motto of Iya Mulik Bengkang Turan or ?Never Give Up Before Successful?.

It is expected the catchphrase of 'Industry follow the Energy? echoed by the government, in which the priority is to move industrial activities closer to energy-producing area can be realized in North Barito, and Central Kalimantan in general, Ophir Energy said.

Ophir Energy said it is committed to continue the search for hydrocarbon potential in the Bangkanai block. Furthermore, to support the wider energy provision effort, Ophir Energy said it is also considering a number of options to monetize gas reserves, for example through a small and medium scale LNG facility for power or transport users or medium-scale industrial facilities which will benefit the greater public. ?Government attention and support to required infrastructures indeed will be very helpful to realize this bigger plan.?

Ophir Indonesia (Bangkanai) Ltd holds a 70 percent operating interest in the Kerendan field, Bangkanai PSC, and PT Saka Bangkanai Klemantan holds a 30 percent equity interest.

Editing by Reiner Simanjuntak