Pertamina studies BP gas field extension: Report

State oil company Pertamina said on Tuesday it was still studying a request from BP to extend its production sharing contract in East Java's offshore Kangean natural gas block.

The global oil giant asked for an extension early last year because one of its fields in the Kangean block was now depleted and it wanted time to explore further areas of the block.

"The contract (for the block) will expire in 2010 and Pertamina is still studying whether to extend the contract or not," one Pertamina official told Reuters.

"The gas from one of the Kangean fields, namely Pagerungan, is currently depleted. BP wants to extend the Kangean block as soon as possible to allow them to secure supplies from other fields in Kangean," the official added.

Under the contract, signed in 1980, Kangean was originally operated by Arco but was taken over by BP when it acquired the U.S. company in 2000.

BP has the preference right to supply natural gas amounting to around 320 million cubic feet per day from the Kangean block to East Java customers, including PT Perusahaan Listrik Negara to generate power. (*)