Pertamina to spend $220m to develop E.Java gas fields

State oil and gas company Pertamina said it would spend around US$ 220 million until 2006 to develop Kedung Tuban and Randu Blatung gas fields onshore East Java to enable to company to supply natural gas to PLN?s Tambak Lorok power plant in Central Java, a Pertamina official said.

?Until the end of this year, Pertamina will drill three delineation wells in Randublatung and Kedung Tuban, to enable Pertamina to certify gas reserves as mandated in the heads of agreement with PLN,? said acting upstream director Eteng A. Salam recently.

Pertamina and PLN had earlier this month signed HoA in which Pertamina would supply 130 MMCFD of gas for 15 years to Tambak Lorok power plant starting 2006. Total gas sold during the 15-year period was estimated around 688 BCF and worth $ 1.7 billion.

Eteng said gas potential at Randubaltung and Kedung Tuban area was estimated at around 1 TCF. (alex)