Petronas says Muriah gas block development continues

Malaysia?s state oil company Petronas says it is considering partners to help develop an Indonesian gas field after conducting a viability review of its global investment portfolio.

The company issued a statement countering claims by the chairman of Indonesia?s upstream oil and gas regulator, BPMIGAS, that it would pull out from developing the Kepodang field.

The site, which lies within the Petronas-operated Muriah block 180 kilometers from Semarang, would require an investment of as much as $400 million, BPMIGAS chairman Raden Priyono said last week.

?Petronas will continue with the development in line with its production-sharing contract,? the Malaysian company said on Monday, adding that it was already in the process of assessing potential partners for Kepodang. ?Petronas is now in discussion with BPMIGAS and other stakeholders to arrive at an equitable solution that brings value to all parties.?

?Like other oil and gas companies, Petronas continues to review the company?s investment portfolio worldwide to ensure and enhance sustainability and profitability,? according to the company?s statement.

Petronas acquired its production-sharing contract for Muriah in 2004. The Kepodang field will supply gas to the Tambak Lorok power plant in Central Java with sales and transportation agreements expected to be concluded this month, the statement said. (*)