PHE WMO supplies processed gas, condensate to affiliates

PT Pertamina Hulu Energi West Madura Offshore (PHE WMO), operator of the WMO block in East Java, began Wednesday supplying condensate to PT Pertamina Petrochemical (Petchem) under a one-year contract.

State-owned oil and gas firm PT Pertamina, the holding of both companies, said in a statement obtained Saturday that condensate supply, at average daily optimum production of 850 bopd, followed a condensate sales and purchase agreement signed on January 25 by PHE WMO and its partner in the WMO block Kodeco, and two other selling parties PT Mandiri Madura Barat and PT Pertamina EP (PEP), the parent of PHE WMO.

The statement said that the condensate distributed to Petchem is part of processed gas returned by PT Pertamina Gas (Pertagas) under a processed gas sales and purchase agreement signed by PHE WMO and Pertagas in December of last year.

PHE WMO started distributing the processed gas to Pertagas on January 27 at a volume of 100 mmscfd. The gas is sourced from WMO block and Poleng Field, operated by PEP. Pertagas will then use part of the processed gas for LPG production, and return the condensate to the upstream companies including PHE WMO, Kodeco, Mandiri and PEP.

Elsewhere, the statement also said that PHE WMO and the other partners have also started receiving the lean gas portion from Pertagas to be redistributed to gas-fired power plants of state-owned electricity firm PT PLN.

Editing by Reiner Simanjuntak