Pertamina eyeing E. Java gas field operatorship

Pertamina EP, an upstream unit of state oil, gas company PT Pertamina (Persero) is in talks with Mobil Cepu Limited (MCL), a unit of US giant Exxon Mobil Corp. over gas unitization at Cepu, a company official said.

Pertamina EP Development Director Syamsu Alam told Petromindo.Com on Wednesday that the unitization would combine development of Jambaran gas field, which is located in MCL-operated Cepu block and Tiung Biru field, which is located in another block also called Cepu, but operated by Pertamina EP subsidiary PT Pertamina EP Cepu Indonesia (PEPCI).

Syamsu said PEPCI is seeking to become operator of the Jimbaran-Tiung Biru gas development despite the fact that most of the reserves lie in the Jambaran area.

?According to our forecast, Jambaran-Tiung Biru structure can be developed to produce 100 MMCFD of gas for more than 15 years,? he said, adding that PEPCI is committed to develop the block in a quick manner to meet soaring gas demend in East Java area if given the right to operate both fields.

MCL is currently in the process of developing the second phase development of Banyu Urip oil field in Cepu block, which is expected to produce up to 165,000 BOPD when completed in 2013-14. Pertamina and MCL share equal interest of 45% each in Cepu block.

Separately, energy meeting led by Vice President Boediono on Wednesday has decided that Pertamina EP will given operatorship for Jambaran-Tiung Biru field and would start production in 2014, according to Boediono Spokesperson Yopie Hidayat as quoted by detik.Com. (godang)