Pertamina says S. Sumatra gas development 70% complete

State oil and gas company PT. Pertamina said on Wednesday it had completed 70 percent of South Sumatra gas complex development and expected the complex would be ready to flow gas to the island of Java in the second half of 2006.

?Pertamina has completed drilling of 38 production wells and is currently working to complete production facility and 100-km pipeline that would connect the field and Pagardewa, where PGN?s pipeline segment would begin,? said Pertamina E&P director Hari Kustoro.

Hari said that the fields would be able to supply 250 MMCFD of gas, which can be ramped up to 350 MMCFD.

State gas distribution firm PGN is currently working to develop South Sumatra-West java pipeline with completion seen November 2006.

Pertamina had signed deal to supply gas from its South Sumatra fields fro 12 years, extendable to 20 years at 250 MMCFD peak rate. Gas is set at US$2 per MMBTU and will gradually increased to $ 2.6 per MMBTU.

Hari said Pertamina would spend US$500 million to develop the fields, with 70 percent of the amount came from Japan?s JBIC loan. (alex/godang)