Pertamina: Gas from SES will flow after pipeline leakage fixed
Thursday, July 19 2012 - 02:24 AM WIB
PT Pertamina Hulu Energi (PHE) is waiting for the completion of repair of the leakage in the pipeline of CNOOC in SES Block for the supply of gas to Offshore North West Java block owned by PHE.
?We hope that the gas from SES will soon flow to our ONWJ Block after the leakage fixed by CNOOC,? PHE President Director told Petromindo.com in Jakarta on Wednesday.
In May 2012 PT Pertamina Hulu Energy Offshore North West Java (PHE ONWJ), a subsidiary of state oil and gas company PT Pertamina, had decided to buy gas from CNOOC in SES Block. The two companies have signed a gas sale and purchase contract, under which PHE will get 1 tBtu natural gas in 3 years at the price of US$ 5,4 per mmbtu. The gas will be used to raise oil production in the ONWJ block.
"After agreement signed, CNOOC has to build metering system at sales point. It has also to build a shutdown valve in outcoming riser Zelda. Until this morning (Wednesday July 18) there was still a leakage and they were fixing it. Perhaps, it will take several days to do it,? he said.
According to PHE Operational Director Edi Purnomo, the gas from SES Block owned by CNOOC will be used to fire its power plant in Zulu Flow Station, ONWJ Block, which will be used to operate its pumps in ONWJ. The Zulu area is expected to produce oil at 400 bopd and gradually increase to 1,700 bopd.
"We will use the gas for our power turbine that is used to operate our pumps. With that, we hope to increase production,? Edi told Petromindo.com
Currently, PHE?s oil production averages at 31,000 barrels per day. Based on the government?s target, PHE has a target of producing 35,000 barrels per day. It said that it would continue to increase exploration and production in the block.
Editing by Benget Besalicto Tnb.