PT PAL expects to join Kangean gas exploration
Saturday, January 31 2004 - 02:30 AM WIB
PAL's president Adwin Suryohadiprodjo said in Surabaya on Friday that the East Java-based shipbuilding company which has also produced a wide range of gas-related products such as vessel, oil cooler and steam turbine would have an important contribution if it is involved in the gas project.
Speaking during a meeting with members of the Commission VIII of the House of Representatives (DPR), Edwin said that besides such gas related equipment, the company's technical engineering division had also produced electricity generation equipment.
According to Edwin, the company expects to book revenue of at least Rp 800 billion this year, of which Rp 400 billion are expected to come from its technical engineering division.
Besides PAL, PT Petrogas Wira Jatim, which is owned the East Java provincial administration, has also expressed its interest to join the future development of the Kangean gas field, which is now the major supplier of gas in East Java.
BP's contract to operate the gas field will expire in 2010. The company has promised to further invest about US$400 million for the exploration of the gas field if the government extends the contract for another 20 years.
The House members supported PAL's intention to expand its activities into gas exploration and production. They said that local companies should be given a priority to develop the country's natural resources. (*)