Simenggaris gas project to be onstream in mid 2012
Tuesday, January 10 2012 - 01:18 AM WIB
Upstream authority BPMIGAS said that the construction of gas facility by joint operating body Pertamina-Medco E&P (JOB PMEP) Simenggaris in Tarakan, East Kalimantan province is almost complete. The facility will process gas from Simenggaris PSC with a volume of 30 million standard cubic feet per day (MMSCFD).
Rudi Rubiandini, Deputy for Operation of BPMIGAS, said that the project should come onstream in the middle of this year.
The facility will process gas from first well with a volume of about 5 MMSCFD. This will be followed by four other wells which are now ready for testing. The gas production will increase in stage.
The JOB has signed a gas sales agreement with a buyer consortium of PT Pertamina Gas and PT Medco Gas Indonesia under an 11-year contract. The JOB PMEP Simenggaris will supply gas to to the same consortium to fuel their methanol plant in Bunyu Island, East Kalimantan.
Rudi also asked the Simenggaris PSC joint operating body to actively drill exploration wells in Nunukan basin ?The prospect of oil and gas to the south and east are promising. The operator still needs to drill exploration wells to prove oil and gas reserves or prospects,? said Rudi.
Pertamina holds 37.5 percent interest in the Simenggaris PSC, Medco Simenggaris 41.5 percent and Salamander 21 percent.
Editing by Roffie Kurniawan