Samtan eyeing to acquire stake at Sumatra NGL project
Thursday, May 6 2010 - 06:16 AM WIB
South Korean firm Samtan Corp. is conducting due diligence to acquire 34 stake in South Sumatra natural gas liquid (NGL) project from another South Korean firm E1 Corp., a unit of state oil and gas company PT Pertamina (Persero) said on Thursday, May 06, 2010
E1 has decided to pull out of the project after the new management ruled that the project would not meet the hurdles it set, PT Pertagas President Suharyanto said. Pertagas has 56 percent stake in the project.
Suharyanto said that the due diligence process will be completed in two weeks? time.
The project, which will cost US$192 million to develop will to extract NGL from some 300 MMCFD of gas to be supplied by Pertagas? sister company PT Pertamina EP and Medco EP.
The plant is designed with a production capacity of 150 tons per day (BPD) of excess propane, 2,150 BPD of condensate and 546 TPD of LPG. The project is expected to be completed in 2012.(godang)