Pertamina, Medco asked to submit new PoD for C. Sulawesi block

Oil and gas upstream regulator BPMIGAS has asked state oil and gas firm PT Pertamina and Medco EP, a unit of JSX-listed energy firm PT. Medco Energi Internasional Tbk to submit new plan of development (PoD) for the operation of the Senoro-Toili gas block in Central Sulawesi.

Achmad Luthfi, BPMIGAS Deputy Chairman for planning, said in Jakarta Tuesday that the PoD submitted earlier should be replaced with the new one if Pertamina and its partner Medco wanted to change the allocation for the gas production.

?I heard, the gas from the block not for power plant anymore, but they plan to build LNG plant,? he said.

Pertamina and Medco equally share interests in the block.

Last year, Pertamina and Medco had appointed Japan?s Mitsubishi Corp. to build and operate the proposed LNG plant in Central Sulawesi. The LNG plant is slated to commence production 2009-10.

Under the cooperation scheme, Mitsubishi will have 60 percent shares in the 2-2.5MTPA LNG plant, with Pertamina and Medco equally share the remaining 40 percent stake. The plant would receive gas from Pertamina-operated Donggi block and Pertamina-Medco-operated Senoro-Toili block. Both blocks have combined proven and certified gas reserves of 2.3TCF. Pertamina and Medco would receive revenue based on actual LNG prices sold minus LNG plant?s costs and margin. Mitsubishi will also act as offtaker of Senoro LNG. (godang)