Santos plans to shut-down gas supply from Maleo

Industrial users in East Java may suffer a gas shortage as Australian oil, gas contractor Santos plans to cut supplies from its Maleo field due troubles at the field's jack-up platform.

Secretary general of the forum of industrial gas users Achmad Widjaya said he had received a letter from Santos on the planned cut in the gas supply. He said Santos would cut down the gas supply by 110 million standard cubic feet per day (mmcfd) from 250 mmscfd at present.

Santos promised that it would carry a repair work in two stages, with the first stage to be carried out for 15 days from April through May, which will lead to a shut-down and the second stage in the first quarter, next year.

?As the consequence, gas supply of 110 mmcfd for industrial users in Surabaya and surrounding areas will be suspended,? he added.

?We hope we will be able to receive gas according to quota to enables to increase production capacity. There is no indication yet that the government will settle the gas supply problem,? he added.

At present, the province receive a total gas supply of 250 mmcfd, including 110 mmcfd. The other suppliers are Kodeco Energy (33 mmscfd), Lapindo Brantas (3 mmcfd) and other production sharing contractors.

BPMIGAS' spokesperson Elan Biantoro confirmed that that the jack-up platform of Maleo had a "fracture" which made it dangerous for Santos to continue operation.

The agency and Santos are seeking to find a solution that does not lead to a shutdown.

"If there is a downtime, it's something that we have anticipated. The operation division has prepared compensation for gas users," he said without further elaborating. (Bernard)