Pertamina may drop plan to build mini LNG for Simeggaris
Thursday, August 11 2016 - 03:23 PM WIB
State owned oil and gas firm PT Pertamina (Persero) is considering canceling plan to develop the gas reserve of Simenggaris PSC in North Kalimantan province.
Industry sources said the firm now mulls a new scenario in which the Simenggaris reserve will be combined with other small reserves discovered in surrounding areas in East Kalimantan as well as North Kalimantan to make them more viable economically to develop and create significant multiplier effects.
?The option of mini LNG plant scheme for Simenggaris gas has been off the table. The gas will be synergized with other gas sources in surrounding areas,? the source said, without providing details about the plan.
When asked for comments, Gunung Sardjono Hadi, President Director of PT Pertamina Hulu Energi (PHE), which is a partner in the block, said the mini LNG plant option is still on the table. The operator of the block is still in discussion with state owned electricity firm PT Perusahaan Listrik Negara (Persero) (PLN) on the monetization plan of the Simenggaris block.
According to the sources, Pertamina?s top management has instructed the firm?s subsidiaries and directorates to synergize the monetization of all small gas reserves in East Kalimantan and North Kalimantan which, if combined, total 10 billion barrels of oil equivalent.
?The reserves are all small. It is difficult to monetize the structures one by one. If the stranded gas reserves are gathered in a cluster, they can potentially be develop,? the sources said.
The Simenggaris PSC is located in Tana tidung regency, North Kalimantan province bordering to the Malaysian state of Sabah. The block is operated by JOB Pertamina-Medco E&P Simenggaris (JOB-PMEPS), in which Medco holds 62.5 percent interest and the balance is owned by Pertamina
Editing by Johannes Simbolon