Petronas, regulator still discuss options to develop Kepodang
Monday, December 19 2011 - 03:34 AM WIB
Spokesperson of BPMIGAS, Gde Pradnyana, told Petromindo.com that options being discussed include raising the gas price to adjust with the change of scenario in the development of the gas field, and extending the Petronas contract in operating the Kepodang field.
BPMIGAS made the offer expecting that the operator would soon start developing the field.
In 2008, PLN made an agreement with Petronas that it would receive 354 billion cubic feet (bcf) of gas until 2021 from 4th quarter 2011. According to the initial plan, the pipeline would be built by Petronas as part of its contract in the operation of the Kepodang gas field.
In 2009, Bakrie & Brothers, holder of the Kalimantan Java gas pipeline project, proposed to build the pipeline network from the Kepodang field to the Tambaklorok Power Plant as part of the company?s Kalimantan-Java pipeline project.
After a series of negotiations held in late 2010, the government approved Bakrie & Brothers? proposal and an early estimate suggested that the company would start the gas delivery in the fourth quarter of 2014. The change of scenario had sparked some friction between the government and Petronas, causing the delay in the development of the Kepodang gas field.
Meanwhile, PT PLN is still waiting for certainty of gas supply from the Kepodang gas field, which is located in Block Muriah, offshore to the north of Central Java.
President Director of PT PLN, Nur Pamudji told Petromindo.com said over the past three months there has been no progress on the gas price negotiation between the government and Petronas, as the operator of the field.
He said PLN, Petronas and PT Bakrie & Brothers have reached an agreement on the gas transmission pipeline issue. ?Now we are waiting for resolution on the gas price,? Pamudji said. The gas from the Kepodang field will be delivered to PLN?s Tambaklorok gas power plant.
Currently, Petronas has the right to operate the field until 2021. Deputy Energy and Mineral Resources Minister Widjajono Partowidagdo said he expects the decision on the utilization of Kepodang gas field would be made early next year at the latest.
Supervision on the construction of the pipeline is now in the hands of downstream oil and gas regulator BPHMIGAS.
The gas price is expected to be higher due to a rise of the well drilling cost and potential risk of failure in the construction of the gas pipeline as the pipeline will be constructed by other party, not by the gas producer (Petronas). (godang)