Pertagas, Exxon still discuss sharing facility, SKK Migas supports
Thursday, February 13 2014 - 03:08 AM WIB
PT Pertamina Gas (Pertagas), a subsidiary of state owned oil and gas firm PT Pertamina, and ExxonMobil Indonesia (EMOI), the subsidiary of American energy giant ExxonMobil Corp. are still discussing the possibility of sharing facilities for the Arun-Belawan gas pipeline project stretching from Aceh to North Sumatra.
Pertagas is building a pipeline linking the Arun LNG plant to PLTGU Belawan power plant in North Sumatra. The pipeline will pass through the working area of EMOI.
"We are still discussing the sharing facility option, including permission from SKK Migas," Pertagas Corporate Secretary Wianda Arindita Pusponegoro told Petromindo.com, on Wednesday, adding that the progress of the construction works has reached 52 percent.
Meanwhile, Deputy for Operational Control at upstream oil and gas authority SKK Migas Muliawan said to Petromindo that SKK Migas and EMOI will support Pertagas? intention of sharing facilities owned by EMOI efforts as long as lands are still available.
According to Muliawan, the Arun-Belawan gas pipeline project, which aims to supply regassified LNG from the Arun LNG terminal, is within the downstream authority.
"Currently the option of sharing ROW (right of way) lands owned by EMOI has technically been discussed. In accordance with the Regulation of Minister of Finance No. 135, the use of upstream assets by non-upstream companies must first receive an approval of the minister of finance," he said.
Editing by Johannes Simbolon