Petrogas allocates US$40 million for Terang Sirasun gas field

PT Petrogas Wira Jatim (PWJ), a company owned by the East Java provincial government, has agreed to allocate about US$40 million for the joint development of the Terang Sirasun gas field with production sharing contractor BP Indonesia, Bisnis Indonesia reported on Monday.

Yan Bastian, the spokesman for PWJ said that the company?s cooperation with BP Indonesia in the development of the Terang Sirasun gas field would be part of the company?s activities in oil and gas production in the province.

"The cooperation is purely based on business-to-business approach," he said.

BP Indonesia needs at least US$400 million in investment fund to develop the Terang Sirasun gas field. The local government through PWJ will provide 10 percent or about US$40 million.

BP Indonesia is currently seeking for contract extension for Kangean PSC block, where Terang Sirasun field is located.

BP Indonesia is currently the main gas supplier for East Java. The production from the company?s Kangean gas field which reaches about 150 million standard cubic feet per day (MMSCFD) is no longer enough to meet the sharp increase in the new demand. (*)