Pertamina threatens to go it alone in Cepu
Wednesday, November 15 2006 - 09:13 AM WIB
?We are ready to develop the Cepu gas at our own risk,? Pertamina E&P?s upstream director Tri Siwindono said on Wednesday.
Tri did not provide a timeframe for the start of the gas exploration and development activities but Pertamina?s upstream director Sukusen Soemarinda said on Monday that Pertamina planned to start gas exploration at the block next year.
?We shall speed up the gas exploration, but we have to finish the POD (plan of development) first. We start gas exploration next year,? Sukusen said.
Tri said Pertamina found the development of Cepu gas was urgent to meet the growing demand of gas in Java.
Furthermore, he said, the government has strongly called the block?s operator to speed up the development of the block?s gas.
Pertamina jointly operates the block with American energy giant ExxonMobil Corp. Both companies have 45 percent stake in the block with the balance held by the regency administrations where the block is located. Located on the border of Central Java and East Java, the block is said to hold about 600 million barrels of oil and up to 3 trillion cubic feet of natural gas. It is thus projected to be able to produce between 600 million cubic feet and 700 million cubic feet per day of gas.
The government has called on the operators of the block to start gas production in 2008, one year ahead of the initial schedule.
It remains unclear whether ExxonMobil is reluctant to meet the request.
In response to the request, ExxonMobil Indonesia?s president director Peter J. Coleman said in August this year, after meeting with Vice President Yusuf Kalla: ?There are options for us to bring forward some of the production, but in a smaller volume,?
He also said Exxon expects to wrap up negotiations with rig owners at the block by the first half of next year.
?That?s what we?re talking about at the moment,? he said. (Alex)