PLN drafting HoA for gas deal with Benakat Petroleum
Monday, January 9 2012 - 02:54 AM WIB
State electricity company PT PLN is drafting a heads of agreement (HoA) with PT Benakat Petroleum Energy Tbk, a listed oil and gas company, to purchase gas from Benakat?s Bengkudulis oil and gas field in East Kalimantan, with a volume of 18 million standard cubic feet per day (MMSCFD).
?We will soon sign HoA (to purchase gas) from Bengkudulis field. We hope to sign the agreement in March 2012,? Suryadi Mardjoeki, Director for Fuel and Gas Procurement of PLN, told Petromindo.com.
Suryadi said PLN is currently holding negotiations with gas producers to purchase gas to meet its power plants? gas need.
?As for Jakabaring deal, we hope to complete the negotiation this month,? said Suryadi.
The Bengkudulis field is operated by Benakat?s subsidiary PT Silverstein. Benakat bought the field in September last year and the new operator has managed to ramp up oil production of the field to 170 BPD from 30 BPD in just one month. Benakat said it will set aside US$24 million in 2012 to finance the drilling of six wells, work-over in five wells and conducting geology, geophysics and reservoir (GGR) study.
Editing by Roffie Kurniawan