Pearl Energy proposing Sebuku gas field to supply Bontang LNG

Singaporean energy firm Pearl Energy Ltd, which is the operator of the Sebuku block in East Kalimantan's Makassar Straits, was in negotiation with the management of Bontang LNG plant to utilize gas from the block's fields as backfill for the existing gas contracts.

?It is proposed that gas from the Makassar Straits gas field will be used to backfill existing gas contracts that are not being satisfied from existing fields in the area surrounding the Bontang LNG facility,? Canadian firm Fuel-x international Inc., which has a 50 percent working interest in the block, said in a statement on Thursday.

Fuel-x said discussions between the operator and oil and gas regulatory body BPMIGAS had been ongoing, during which BPMIGAS had indicated support for this proposal.

As part of the commercialization process, the operator has engaged LEMIGAS, a petroleum consulting firm linked to the Ministry of Energy and Mineral Resourcers, to certify the Makassar Straits reserves base, Fuel-x added.

Fuel-x also said the operator had commenced a 3-D seismic program to assist in certifying an increase in gross resources from 270 billion cubic feet (BCF) to 380 BCF that has been identified based on information gained from the MKS-2 appraisal well.

Aside from Sebuku block, Fuel-x and Pearl Energy are also partners in Tungkal Block onshore South Sumatra, where the Singaporean firm also acts as the operator and Fuel-x has a 30 percent working interest.

With regards the Tungkal block, Fuel-x said a new seven-well development program was expected to commence in the northern area of the block in the fall of 2006.

?The development program has been submitted to the Indonesian authorities and conditionally approved,? Fuel-x said, adding that an initial evaluation by the operator estimated that reserves of at least 1.6 million barrels (535 mbbl net to Fuel-x) could be recovered from this northern area. (Robert)