Petronas to declare force majeure
Thursday, July 6 2017 - 05:20 PM WIB
Indonesian unit of Malaysian oil, gas firm Petronas is requesting approval from SKK Migas to declare force majeure due to its inability to fulfill gas contract volume from Kepodang field in Muriah PSC block offshore East Java to Tambak Lorok power plant owned by state electricity firm PT PLN Persero.
SKK Migas Deputy Operations Fatar Yani told Petromindo.Com on Thursday that Petronas only managed to supply 70 mmcfd of gas from contracted volume out of 110 mmcfd contracted volume due to over estimation of the size of the field?s reservoir.
Fatar said SKK Migas has assigned Ministry of Energy?s oil, gas research unit Lemigas to make independent assessment over the matter.
Petronas started flowing gasfrom Kepodang to Tambak Lorok power plant, which is located in Semarang, Central Java in 2015 under long-term contract that will end in 2026. Tambak Lorok has total generation capacity of 880 MW.
Petronas has 80 percent interest in Muriah with the balance held by Saka Energi.
Editing by Alexander Ginting