PetroChina, Pertamina-Hess in Sumatra liquids processing talks

Pertamina and Hess Corp., co-operators of Jambi Merang PSC in Jambi is in talks with PetroChina, operator of Jabung block, also in Jambi, to use the latter?s facilities to process natural gas liquids (NGL) that would be produced from Jambi Merang.

Budi Setiadi, PetroChina?s VP Administration for Indonesian units told petromindo.Com earlier this week that talks between the two parties are ongoing, but still at preliminary stage.

Under the deal, Jambi Merang would use Jabung?s North Geragai fracination plant to capture propane, butane and condensate from its future gas production, and use Jabung?s facility FSO to store the liquids.

?North Geragai still have spare capacity to service Jambi Merang?s liquid processing needs,? Budi said.

Jambi Merang will start production from Pulau Gading and Kenawang fields starting 2009 with peak production rate of 120 MMCFD of gas and 12,000 BPD of liquids. (alex)