Radiant Utama offering gas to PLN

By Giok Manna

PT Radiant Utama Interinsco Tbk is offering the state electricity company PT PLN to buy its gas from a field of South West Bukit Barisan oil and gas block, operated by the company.

"We'll meet this year to discus about the gas purchase with PLN," PT Radian Utama Interinsco President Director Sofwan Farisyi said in Jakarta on Tuesday.

"We see PLN as a potential buyer. Our gas reserve in Southwest Bukit Barisan can generate electricity up to the capacity of between 80 and 100 MW," he said.

According to him, the block has a proven gas reserve of 87 million cubic feet and unproven oil reserve was estimated to reach 26 million barrels. The company drilled one well.

The company is currently conducting a due diligence with one local investor and two foreign investors to develop the oil and gas block onshore Bukit Barisan. The due diligence was expected to be finalized this month.

Previously, the company had stated that if the investors farmed in then they would control 49 percent interest in the block, while it still controls 59 percent.

The company has targeted to drill one more well before October this year and hoped to start production in 2013.

"We've finished an environmental study and now we're doing land clearing. Our investment to drill one well is expected to amount to about US$5 million," said Sofwan.

Radiant Utama mainly focuses on oil and gas service business. In 2008, it entered upstream business by acquiring 100 percent PT Radiant Bukit Barisan, which has 51 percent participating interest in South Bukit Barisan block in West Sumatera.

Editing by Benget Besalicto Tnb.