Senoro gas project postponed to Q1 2015

Friday, February 7 2014 - 02:50 AM WIB

By Febry Silaban

The completion of the Senoro gas field development project in Central Sulawesi has been postponed to the first quarter of 2015, said an official of upstream oil and gas authority SKK Migas.

The field which is located in the Senoro Toili PSC JOB operated by Pertamina-Medco Tomori JOB (Joint Operating Body)

?The Senoro project is now scheduled to start production in the first quarter of 2015, a slight delay from the earlier schedule of third quarter of 2014,? Division Head for Inspection of Realization of Field Development Plan at SKK Migas Nugrahani told Petromindo.com on Thursday.

The reason for the delay was ?the changing result of the soil investigation?, she said without providing details.

The Engineering, Procurement, and Construction (EPC) works at the field, she added, have also been progressing a bit slowly.

?The EPC works, which according to the initial plan should reach 53 percent, have only been 49 percent completed per Dec. 31, 2013,? Nugrahani said.

Meanwhile, a source who requested anonymity told Petromindo that ?the changing result of the soil investigation? indicate the presence of hard soil layers that was deeper than it is stated in the tender documents.

The changing result has an impact on price and schedule for field execution, the source said.

The Sonoro field is one of the fields that will supply gas to the Donggi Senoro LNG plant which is now under construction, owned by PT Donggi Senoro LNG (DSLNG), a consortium of Japanese firm Mitsubishi Corporation, state owned oil and gas firm PT Pertamina, and IDX-listed firm PT Medco Energi Internasional. In November last year, Reuters, quoting officials from Japanese firm Mitsubishi, said the project will commence production only in March 2015 compared to an earlier target of 2014.

The Mitsubishi officials did not detail the reason behind the delay.

The report was however denied by officials from DSLNG and Medco.

"To this date, operation target of DSLNG is still in line with the initial schedule, which is at the end of 2014. We haven't received any revision (from shareholders)," said DSLNG President Director Gusrizal in last November.

"The EPC works have been 95 percent completed so far. We are trying very hard to meet the completion target by the end of 2014," Lukman Mahfoedz, President Director of Medco, said separately.

The Donggi Senoro LNG plant is designed to have a total production capacity of 2.1 million tons per annum. Aside from Senoro field, it will also receive gas from Matindok gas field, which is wholly owned by Pertamina.

Editing by Johannes Simbolon

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