PEP postpones Tegal Pacing gas project
Thursday, April 16 2015 - 02:54 AM WIB
PT Pertamina EP (PEP), a subsidiary of state owned oil and gas firm PT Pertamina, has decided to postpone the development of the Tegal Pacing project in Cikarang, West Java due to land issue.
PEP?s President Director Adriansyah told Petromindo.com that the firm initially planned to bring the project into production at the end of this year, but it has decided to postpone the production start to 2016.
?We are now focused on appropriating lands for the project,? he said.
The firm made gas discovery at the field in 2004 with a potential gas production of 15 mmscfd and Plan of Development (PoD) for the field was approved in 2013. It is however faced a problem in developing the project due to the fact it is located close to residential areas.
According to Adriansyah, the firm will handle the EPC of the project itself, without the help of other companies.
?The project is initially targeted to come onstream at end of 2015. However, the execution of the project has been postponed due to the land issue. We shall load up works next year, assuming land appropriation will be completed this year with peak production in 2016,? he said, adding the firm is still looking for an offtaker of the gas.
Editing by Johannes Simbolon