PHE: further development of Block SK305 depends on gas price
Friday, February 17 2012 - 01:31 AM WIB
PT Pertamina Hulu Energi, a subsidiary of state oil and gas company PT Pertamina, said the development of Block SK 305 in offshore Serawak, Malaysia depends on the decision on new gas price being discussed with the Malaysian government.
"If new gas price is set, we may drill more wells," PHE President Director Salis Aprilian told Petromindo.com.
PHE is still in talks with the Malaysian government for a hike in the price of low oil content gas (non ASSO) produced in the block. The company expects to get approval from the Malaysian government in this quarter.
"There are two-three gas reservoirs in the block. Again, the development of the block depends on the commercialization terms," he said.
PHE has proposed for a 535-percent hike in the price of non ASSO gas produced in Block SK 305 to US$4 per mbtu from the current price of $0.63 per mbtu.
PHE is in cooperation with Malaysia?s Petronas Carigali Sdn Bhd and Vietnam?s Petrovietnam in developing the block.
Editing by Roffie Kurniawan