SKK Migas allocates gas from Betara to local BUMD

By Godang Sitompul

Upstream authority SKK Migas has allocated gas from Betara complex operated by Petrochina in Tanjung Jabung, Jambi, at 24 MMSCFD to the local-administration-owned company (BUMD) based on a five year contract starting 2013.

But it cannot be realized yet as the BUMDs owned by the province and regency administrations have not yet completed the necessary pipeline infrastructure to channel distribution of the gas.

"The gas allocations from Petrochina Jabung had been set at 14 MMSCFD for the consortium of provincial BUMD and the Tanjung Jabung Barat regency?s BUMD, 5 MMSCFD for BUMD of Tajung Jabung Barat regency, and 5 MMSCFD for BUMD Tajung Jabung Timur," SKK Migas Gas Commercialization Division Head Popi Ahmad Nafis told Petromindo.com in Jakarta on Monday.

Popi noted that the gas allocations will last for five years based on their contracts.

"The contract of gas sale and purchase for the consortium of Jambi province and Tanjung Jabung Barat regency at the volume of 14 MMSCFD had been signed. Perhaps, they had started the contruction. The allocation of 5 MMSCFD for Tanjung Jabung Barat is not yet certain. But we?ll discuss it again with them. The allocation of 5 MMSCFD for Tanjung Jabung Timur is now undergoing a due diligence,? he said.

SKK Migas Project Management Division Head Rudi Riambono said that the development of South Betara in Betara Complex of Petrochina is still going on.

But Petrochina is also finalizing a license for a land site with PT Wira Karya Sakti (WKS).

"The POD for South Betara Petrochina in Tanjung Jabung has been approved. They are finalizing a license for a land site with WKS and also an agreement on gas sale,? said Rudi Riambono to Petromindo.com.

Editing by Benget Besalicto ST