Salamander?s gas processor is nearing completion
Wednesday, January 14 2015 - 02:49 PM WIB
UK oil and gas firm Salamander Energy said recently the construction of the gas processing facility at Kerendan field in Bangkanai PSC, onshore Central Kalimantan is nearing completion, though a few weeks behind schedule due to very dry conditions making the logistics of river-borne transportation difficult.
The wells are ready to produce and the pipelines connecting the well pad to Kerendan Gas Processing Facility (KGPF) and KGPF to state owned electricity firm PT PLN?s (Persero) power plant are in the final stages of installation.
PLN?s power plant and transmission lines have progressed over the year but PLN has recently amended its schedule to mid-2015 readiness citing delays with importation of equipment and the difficult logistics of the Kerendan site.
The delay is being factored into the economic assessments underpinning negotiations of an increased gas price in the Kerendan gas sales agreement (GSA).
Management believe that these negotiations will complete during the first quarter resulting in a gas price substantially higher than the existing GSA and sufficiently high to at least preserve Salamander?s project economics.
Editing by Johannes Simbolon